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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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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.

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