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The NPD Group found that six out of 10 digital movies are streamed through Netflix

It's no secret that Netflix is rising in popularity fast. Many consumers who have spent thousands of dollars over the years in building up large movie collections are beginning to look to the video rental/streaming service and other digital services for low prices on movies or TV shows they can watch wherever they want, anytime they want.

Netflix is so big, in fact, that it has Hollywood film executives scared, and they're not the only ones. Blockbuster and Movie Gallery have filed for bankruptcy protection because of Netflix's impact on the movie industry. The rental/streaming giant has over 20 million subscribers that can access Netflix's services on over 200 devices/platforms. So it's no surprise that a new survey has confirmed that Netflix is the leader in digital movies streaming. 

The survey, which was conducted by The NPD Group, a leading North American market research company, was performed between January and the third week of February 2011, and consisted of 10,618 U.S. consumers ages 13 and older. Using a new tracking service called VideoWatch Digital, The NPD Group found that six out of 10 digital movies are streamed through Netflix

Netflix's share of downloaded or streamed digital movie units hit 61 percent during the time of the survey, while Comcast was at 8 percent, and Time Warner Cable, Apple and DirecTV were at 4 percent.  

In addition, participants were asked to describe their satisfaction with electronic sell-through (EST), cable VOD, Internet VOD, and subscription streaming. Many reported that ESTs have the most new releases available, but Netflix streaming received many good remarks such as "best value for price paid" and "best overall shopping experience."

"Sales of DVDs and Blu-Ray Discs still drive most home-video revenue, but VOD and other digital options are now beginning to make inroads with consumers," said Russ Crupnick, an entertainment industry analyst for The NPD Group. "Overwhelmingly digital movie buyers do not believe physical discs are out of fashion, but their digital transactions were motivated by the immediate access and ease of acquisition provided by streaming and downloading digital video files."



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Competitors
By icemansims on 3/15/2011 2:08:18 PM , Rating: 3
I have to say, it's not just their library. It's the ease of use. I tried watching some stuff on Comcast the other day and they were a royal pain just to sort through and find the movie I wanted, they required a specific plugin, didn't work with Chrome, didn't like IE9, etc. Netflix is stomping everyone just be doing what they should all be doing.




RE: Competitors
By quiksilvr on 3/15/2011 2:19:39 PM , Rating: 3
And no commercials.

Oh, and every Futurama episode. And the movies. In HD. Life complete.


RE: Competitors
By Aloonatic on 3/15/2011 2:22:35 PM , Rating: 2
I hope they expand to the UK soon, or Google's version is at least as good as what I have heard from friends in the States (and people on here) say that Netfix is.

No mega-rush though. I'll have to move to somewhere with an internet connection that could stream HD content first.


RE: Competitors
By therealnickdanger on 3/15/2011 2:36:25 PM , Rating: 2
quote:
And no commercials.

This.

Netflix is probably the greatest Internet "killer app" since e-mail. We have shared our Netflix account with family members living in 3 other states. Five or six devices total, I can't remember. Then we get the Blu-rays in the mail too. How can anything compete with that?


RE: Competitors
By sc3252 on 3/16/2011 8:40:59 AM , Rating: 3
I only share it with my parents, but when I want something all I have to do is threaten to cut off netflix and they give it to me like scared children >=D.


RE: Competitors
By Hiawa23 on 3/15/2011 2:52:00 PM , Rating: 2
I love Netflix. I have been a subscriber since day 1. I have the 2 out at a time, mainly now rent Bluray, but I love it, as what I don't get in DVD or Bluray, instant stream has been great for some of the tv shows I missed, or movies. My only gripe with Netflix is some movies they hold for upwards of 20-30 days after release, depending on the studio, they thought this would curb piracy & would force you to buy the movie at the store. I just move something else up until it's available. It would be nice if you could get instant streaming for new movies but I understand why they don't at this time. Redbox is a nice alternative, only charges $1.50(bluray), $1.00(DVD) per day, & very little overhead, no wonder Blockbuster filed bankruptcy with big box stores, also there is vudu.


RE: Competitors
By Hakuryu on 3/16/2011 10:58:17 AM , Rating: 3
I have Time Warner, and their On Demand service is a joke.

Half the time the menu will not load - empty list which requires a cable box reboot (5 minutes), and this doesn't even guarantee the list will show. If its not the list acting up, its the constant errors like 'this movie is not currently available, try again later'(another reboot). It literally can take 30 minutes of power cycling the cable box before you get a movie (if you get it at all).

Time Warner has been around for a while, and I can't understand how their service is so bad, when Netflix or even the Xbox 360 is flawless - click to watch, and it works every time.


RE: Competitors
By AlphaVirus on 3/16/2011 12:14:51 PM , Rating: 2
The whole Comcast interface and experience is a joke.
The On Demand menu sucks, every menu feels clunky and outdated.
My gripes:
1. You press a button on the remote and it takes almost a full second to act on your request
2. The On Demand library is not as great as they try to hype it up to be, its full of old ass movies that most people (including myself) would never watch even on the day it released.
3. The music videos are the lyrics dubbed over another song, very few are just what you think it is
4. The available color schemes look like shit, no I don't want yellow/purple nor green/black. While Uverse doesnt allow you to change the color (that I know of) at least it looks clean/slick/update and has that fairly glassy look

I came from Uverse and that feels like an updated interface and everything works well.


RE: Competitors
By rburnham on 3/17/2011 8:39:44 PM , Rating: 2
I agree. I love that I can have Netflix running on the Windows Media Center HTPC in my office, and my wife can use it at the same time on the PS3 in our living room. I dare say Netflix saved our marriage!


Not for long!
By gevorg on 3/15/2011 3:59:12 PM , Rating: 2
Enjoy Netflix while you can, with more and more ISPs announcing bandwidth caps, Netflix won't be unlimited anymore.




RE: Not for long!
By av911 on 3/15/2011 4:14:18 PM , Rating: 2
^^Yeah, that.

Physical media will survive.


RE: Not for long!
By Solandri on 3/15/2011 4:47:20 PM , Rating: 2
The streamed movies from Netflix are about 2-3 GB per movie.
AT&T announced 150/250 GB monthly caps.

If you're on the lower cap, you could watch 1 movie every night for a month and still have over 40% of your cap left over.

If you're on the higher cap, you could watch 2 movies a day and still have more than 28% of your cap left.

The caps make sense, and addresses the "unlimited" false advertising problem people have been complaining about for over a decade. I'm more worried about the ISP degrading Netflix's streaming transfer rate so that the movie keeps getting interrupted, or it drops down to a lower rate with crappy quality. If I'm paying my ISP for 5 Mbps, they damn well better give it to me. Not 0.1 Mbps for Netflix and 5 Mbps for everything else.


RE: Not for long!
By BladeVenom on 3/15/2011 5:58:00 PM , Rating: 2
Most people have families. If you have 5 people in your household, you wouldn't even get to watch an hour of HD video a day without going over your limit.


RE: Not for long!
By sc3252 on 3/16/2011 8:43:05 AM , Rating: 2
No joke, if I had a cap with surewest I am almost positive I would go over 150GB. I watch at least 3-4 shows a day, and my brother watches another 3 or so.


RE: Not for long!
By tigz1218 on 3/16/2011 9:42:16 AM , Rating: 2
Just like how we never needed more than 640k of ram.........

Your basing the size of movies on today's standards. Don't forget about tomorrow.


RE: Not for long!
By AlphaVirus on 3/16/2011 12:17:22 PM , Rating: 2
Thats saying that only 1 person can live on that available cap. I live in a house with 3 adults and 1 child, many times we have 3 movies playing at a time. Albeit this doesn't happen every night because we have lives outside the home, but imagine a stay-at-home wife...she could watch 3-6 movies on average per day.


Netflix is crippling ISPs
By Spookster on 3/16/2011 12:25:11 AM , Rating: 2
I like my Netflix but unfortunately so do alot of other people. So much so that ISPs networks are being crippled. My ISP said currently 80% of their bandwidth today is being used up by Netflix and is causing utilization issues for everybody in my area. The node i'm on is at 85% utilization because of Netflix streaming so with my 12Mb connection I am lucky to see 1Mb speeds in the evenings during peak hours and 3-4Mb during off peak.

ISPs will have no choice but to build up their infrastructure more but the question is who will be paying for it? ISPs already charge alot for broadband so jacking up their prices will likely lose customers. I foresee a legal battle between ISPs and Netflix in the very near future which I would venture to guess that will result in Netflix paying ISPs for extra bandwidth which Netflix will have to pass along to their customers.




RE: Netflix is crippling ISPs
By crazyblackman on 3/16/2011 12:31:23 AM , Rating: 2
This is news? Slow day at Dailytech to me.


RE: Netflix is crippling ISPs
By Denigrate on 3/16/2011 8:50:23 AM , Rating: 2
ISP's have been dogging it for a long time in regards to "future proofing" their networks. It's not like the writing hasn't been on the wall about digital content for the last DECADE. Instead of whining and trying to litigate themselves out of the bind they created, they should be looking to upgrade their service.


RE: Netflix is crippling ISPs
By Denigrate on 3/16/2011 8:53:13 AM , Rating: 2
Oh, and you don't really have a 12MB connection if all you can get is 3-4 mb on off peak times. You have a 3-4 mb connection because your ISP has so oversold their bandwidth no one can get the theoretical maximum on their network.


RE: Netflix is crippling ISPs
By TheDoc9 on 3/16/2011 10:27:26 AM , Rating: 2
Something I thought I'd point out here, this is a perfect example of how passing net neutrality would harm consumers. The unintended consequence of the government getting involved in internet regulation would make it difficult for isp's to raise prices and therefor build out their infrastructure.

If they did sue Netflix and won, Netflix in turn would have to raise prices, loosing customers and costing you more anyway.

You'd end up with higher prices in the end, and less infrastructure / movies (product).


RE: Netflix is crippling ISPs
By Adonlude on 3/16/2011 1:59:08 PM , Rating: 2
My ISP is also my cable TV provider and I just dumped them for everything but internet and now only use Netflix and Hulu. I pay my ISP less than half of what I used to and probably use up even more of their bandwidth than before.

I know a lot of people who are doing the same thing. The ISP will attempt do keep their pockets filled eventually. Its only a matter of time.


Network neutrality
By nafhan on 3/15/2011 2:39:00 PM , Rating: 5
Thanks to net neutrality, Netflix is in the lead because they provide the best combination of service and price. Without respect for net neutrality, we (the consumer) would instead get the privilege of using whatever content provider is able to broker a good deal with ISP's, etc.




RE: Network neutrality
By cruisin3style on 3/15/2011 3:17:37 PM , Rating: 2
I thought a law passed recently that allowed preferred connections or whatever? It was an article here on dailytech about republicans voting for it. That is the last i've heard on this topic...has there been a reversal on this, or a new bill?


RE: Network neutrality
By MrFord on 3/15/2011 4:12:18 PM , Rating: 2
Well that's what we may lose if and/or when we lose net neutrality.


RE: Network neutrality
By nafhan on 3/15/2011 5:28:57 PM , Rating: 2
We essentially have de facto net neutrality, right now (for most landlines at least). I was kind of more talking about how important it is, and what we could potentially lose.


chuckle
By lenardo on 3/15/2011 2:21:28 PM , Rating: 2
i just resubscribed to netflix - just the streaming subscription.

8 dollars a month for all the movies i want to watch that are avail?

i have 3 kids.

4 days, 8 movies so far.

have entire seasons of their favorite cartoons on instant queue.....

WELL worth the 8 dollars a month.

for the record i have blue ray player that does netflix and a wii.. plus 4 computers online.




RE: chuckle
By nafhan on 3/15/2011 2:44:01 PM , Rating: 3
I do the $10 subscription, and every once in a while I think about the fact that, not so long ago, I was paying $5 - $20 to rent a single movie!


My Experience with Netflix
By AggressorPrime on 3/15/2011 8:15:27 PM , Rating: 2
I recently tried out Netflix this past week considering they offer a free first month subscription. The price is reasonable, the downloads are fast, and there are no commercials. However, I find their selection worse than what I was expecting.

They have a lot of movies you can get shipped to you via DVD, but the streaming options are much more limited. As I looked up my favorite movie selections, most of them popular titles, I was left disappointed when only a select few could be streamed. And its not just the new titles, old ones as well. I would expect if they can send you DVD's of a title, the same title ought to be able to be streamed. My only guess was that the copyright laws may only allow some titles to be rented via DVD and not streaming, but someone with more knowledge on copyright law would have to confirm this.

Anyway, if you have time to wait for shipped movies, it shouldn't matter. The price isn't too much higher for the DVD option. But for those who want movies now like we have instant TV shows with companies like Fox, I think we still need a big improvement. I ended up running out of movies to watch due to unavailability within the first couple of days of using Netflix.




RE: My Experience with Netflix
By sc3252 on 3/16/2011 8:47:17 AM , Rating: 2
You are doing it wrong. Instead of looking for your favorite shows find highly rated shows you haven't seen and start watching those. It always turns out well when you take this approach.


RE: My Experience with Netflix
By kattanna on 3/16/2011 10:51:37 AM , Rating: 1
yep. we have used the instant viewing side to check out a number of shows/movies that we otherwise would not have watched or shipped to us via DVD. oh boy have we had some duds, but more so we have found many things we have liked.


Yes it's good - but...
By Dr of crap on 3/15/2011 3:18:09 PM , Rating: 2
Yea, I like the streaming, but I'd REALLY love streaming in better closer to HD quality.
I know the bandwidth required is a lot, so I can only dream.

I guess that's why you need to get DVDs or Bluerays in the mail as well.




By shortylickens on 3/16/2011 9:53:12 AM , Rating: 2
Netflix is the most popular legal source of movies.
I have no doubt in my mind that P2P has more movies and a bigger audience.




Streaming library is quite poor
By Red Storm on 3/16/2011 11:02:06 AM , Rating: 2
Netflix needs to match their streaming library to their DVD library. Only then would I consider signing up. I tried it for a week and their selection was a major let down.




Canadian Netflix
By Breakfast Susej on 3/17/2011 4:27:24 PM , Rating: 2
I have Netflix service in Canada and I wish the selection was as good as the U.S. Service. It's pretty terrible in Canada, though admittedly it did get a lot better since they launched it.

If the selection was as good here as it is in the U.S. I honestly couldn't see any need for anything else. Television just sucks, greatly. You pay over 100 bucks a month for Satellite TV with absolute garbage to watch here.

To me TV is already dead, and I wonder if that is what the future holds for it in a more global respect. Is a day and age coming where TV as we know it goes the way of the dodo, and people turn fully to the internet for entertainment? I know I already have.




Love
By rburnham on 3/17/2011 8:15:37 PM , Rating: 2
I love the way Netflix has exposed me to all sorts of movies and shows that I otherwise would probably have never known about.

I still watch blu-rays via the mail, but Netflix does make much me less inclined to own discs. I save so much money with this service.




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