NPD: Apple's iTunes accounts for 67% of TV downloads, 65% of movies

Posted:
in iPod + iTunes + AppleTV edited January 2014
Just as is the case with digital music downloads, iTunes' early-mover advantage in video downloads has secured it a massive lead over its competitors in the sector, according to new findings.

itunes
Apple's iTunes store is a force in music, movies, television, books, and apps.


The NPD Group on Tuesday released new figures on the home digital-video sector, finding Apple holding a 67 percent share of the digital TV download market, as well as a 65 percent share of the movie market. No competitor comes close, as Apple outstrips the closest individual services ? Microsoft's Xbox Video and Amazon's Instant Video ? several times over.

Xbox Video accounted for 10 percent of electronic sell-throughs in movies and 14 percent for TV shows, NPD's figures showed. Amazon's Instant Video accounted for 10 percent in movies and eight percent in TV shows.

All other services outside of iTunes, Xbox, and Amazon amounted to 16 percent share for movies and 10 percent share for TV shows.

The Internet video-on-demand (iVOD) sector saw Apple's lead persist, though at a less extreme degree. Apple grabbed 45 percent market share of online movie rentals, more than twice that of its next competitor, Amazon. After Amazon's second-place finish with 18 percent, the field rounded out with VUDU and Xbox Video, with 15 and 14 percent, respectively. All other providers amounted to eight percent share.

"Apple has successfully leveraged its first-mover advantage and of iTunes, iOS and the popularity of iPhone and iPad to dominate the digital sale and rental markets for movies and music," senior NPD analyst Russ Crupnick said. "While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long."

The report attributes Apple's dominance in the segment to a high level of customer satisfaction, finding that eight out of 10 iTunes video customers rated their shopping experience as excellent or very good. Similar percentages were satisfied with the service's number of current releases and selection.

As the study only measures video content that is purchased by consumers for permanent ownership, it may not reflect the entirety of the video consumption market. It does not, for example, take into account Netflix, which is known to be one of the largest consumers of Internet bandwidth in the world due to the popularity of its streaming service.

iTunes music, video, and app download services have become a significant cash generator for Apple thanks to the popularity of the company's iDevices. As in video, iTunes controls a massive slice of the digital music market, with a 63 percent share. The service is now estimated to pull in more than $2 billion per year for Apple.

Comments

  • Reply 1 of 14
    gwmacgwmac Posts: 1,807member
    I know Netflix and Hulu are completely different models because you just pay a monthly fee for an all you cant watch buffet but I heard that if netflix were a cable channel it would now be the most watched channel in America by far and the article touches on that. I have never bought or rented a movie or TV show from iTunes or anyone else. I rarely want to watch a movie or show more than once. I do watch Netflix quite a bit though and really enjoyed House of cards. I also doubt paid movies or TV shows even makes a dent compared to torrent downloads. But it is good news that iTunes is the leader in this sector.
  • Reply 3 of 14


    I can believe it. I have video on demand with my cable provider and an Apple TV. Movies cost the same on both, but I prefer to order and watch through my Apple TV because it's easier than the clunky box my cable compant. The Apple TV is also way faster when it comes to navigating or going through menus while my cable box often has lags or pauses, which drive me crazy.

  • Reply 4 of 14


    does this include the BitTorrent Market? 


    or the Porn Market;-)?


     


    my guess this is share of revenues... not share of served bits.   I would think that NetFlix would be larger in terms of bits served.


     


    If it bits and includes all forms (legal and otherwise) I'm skeptical...

  • Reply 5 of 14

    Quote:

    Originally Posted by EricTheHalfBee View Post


    [...]but I prefer to order and watch through my Apple TV because it's easier than the clunky box my cable compant. The Apple TV is also way faster when it comes to navigating or going through menus while my cable box often has lags or pauses, which drive me crazy.



     


    highlighted the key parts of Apple's Business Plan.   Make it Easier, and people will pay for the convenience.

  • Reply 6 of 14
    lkrupplkrupp Posts: 10,557member

    Quote:

    Originally Posted by gwmac View Post



    I know Netflix and Hulu are completely different models because you just pay a monthly fee for an all you cant watch buffet but I heard that if netflix were a cable channel it would now be the most watched channel in America by far and the article touches on that. I have never bought or rented a movie or TV show from iTunes or anyone else. I rarely want to watch a movie or show more than once. I do watch Netflix quite a bit though and really enjoyed House of cards. I also doubt paid movies or TV shows even makes a dent compared to torrent downloads. But it is good news that iTunes is the leader in this sector.


     


    I just don't get the Netflix thing. Very mediocre content, second tier ripoff movies, old TV shows, old movies, nothing remotely current, top tier classic movies missing, the list goes on. The only thing going for it is that it's cheap, in my opinion. I go for the iTunes content every time.

  • Reply 7 of 14
    saareksaarek Posts: 1,530member
    When the stats mention video on demand I assume services like Netflix are excluded to boost Apples' stats
  • Reply 8 of 14
    gwmacgwmac Posts: 1,807member

    Quote:

    Originally Posted by lkrupp View Post


     


    I just don't get the Netflix thing. Very mediocre content, second tier ripoff movies, old TV shows, old movies, nothing remotely current, top tier classic movies missing, the list goes on. The only thing going for it is that it's cheap, in my opinion. I go for the iTunes content every time.



    Nonsense. You make it sound like all they have is B movies and shows from the 80's or earlier. The variety of content is amazing especially considering you only pay less than $10 a month. They might be a season behind but shows like Sons of Anarchy, Breaking Bad, Mad Men, and The Walking Dead are just a few I enjoy and and because I missed the first few seasons of these shows I was able to catch up then use my DVR to record and watch the latest season. They even have some original content like the House of Cards which is excellent. They also have tons of academy award winning movies. Why would I care if a movie is 2 years old if I have never seen it? It is new to me. I also don't think that the latest is necessarily always the greatest. Then they have a wide variety of great stand up comedians, documentaries, and all sorts of other shows I enjoy watching. Just because you "don't get it" doesn't mean the rest of us don't. 

  • Reply 9 of 14
    pedromartinspedromartins Posts: 1,333member

    Quote:

    Originally Posted by TheOtherGeoff View Post


    does this include the BitTorrent Market? 



    Exactly.


     


    If someone believes that people will wait more than one year for season 3 of game of thrones when it is being showed on the US, or paying for 50yo songs... Well, there's no hope for them.

  • Reply 10 of 14
    dasanman69dasanman69 Posts: 13,002member
    does this include the BitTorrent Market? 

    It's not that big of a market, though I was surprised to hear how many times GoT gets downloaded.
  • Reply 11 of 14
    christophbchristophb Posts: 1,482member
    Exactly.

    If someone believes that people will wait more than one year for season 3 of game of thrones when it is being showed on the US, or paying for 50yo songs... Well, there's no hope for them.

    I wait because I'm not into theft. I don't think any company can compete with the those margins. I'd expect anyone with patents or Ip to protect expects the same from others.

    I do wish HBO would charge a heavy premium and let me buy the season subscription and get the show a day late like broadcast and other cable (non-premium) channels do for their season series. Same with Showtime. I've known for a while that I'm not the typical consumer. Probably the case for most of us here. Shhhhhh. I still buy CDs (& SACDs).


    I do get digital copies whenever there is an iTunes option when purchasing Blus. I do wonder how those as counted in the stream vs physical stats. I'm sure Apple gets their cut.
  • Reply 12 of 14
    christophbchristophb Posts: 1,482member
    dasanman69 wrote: »
    It's not that big of a market, though I was surprised to hear how many times GoT gets downloaded.

    Boobs, blood and even the dwarf finds love. I think the latter gives the BitTorrent gamers hope.
  • Reply 13 of 14
    dasanman69dasanman69 Posts: 13,002member
    christophb wrote: »
    Boobs, blood and even the dwarf finds love. I think the latter gives the BitTorrent gamers hope.

    Lol well I get why it's the most downloaded show I was just surprised at the number. Btw the dwarf's chick is pretty nice.
  • Reply 14 of 14
    christophbchristophb Posts: 1,482member
    dasanman69 wrote: »
    Lol well I get why it's the most downloaded show I was just surprised at the number. Btw the dwarf's chick is pretty nice.

    Me thinks you have not read the books. 1. Sh[a]e was hotter in my mind and 2. True to GoT form, you'll hate her soon enough.
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