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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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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.

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