Print 25 comment(s) - last by StevoLincolnit.. on Jun 4 at 10:40 PM

Netflix's share of U.S. online movie revenue skyrocketed to 44 percent in 2011

When it comes to the U.S. online movie business, Netflix pushed Apple aside for top revenue in 2011.

IHS released its IHS Screen Digest Broadband Media Market Insight Report, showing that Netflix's subscription video on demand (SVOD) service surpassed Apple's iTunes, which is a transactional video on demand (VOD) service, in 2011.

According to IHS' report, Netflix's share of U.S. online movie revenue skyrocketed to 44 percent in 2011. This is a significant jump from Netflix's share in 2010, which was less than 1 percent.

Apple, on the other hand, had its total revenue drop to 32.3 percent in 2011. This was a pretty big decrease from 60.8 percent in 2010.

"We're in the midst of a significant change in the way people pay to consume movies online," said Dan Cryan, research director for digital media at IHS. "All the significant revenue in the U.S. online movie business in 2011 was generated by rental business models, which provide temporary access, not permanent ownership. Rental delivers unlimited consumption with a low monthly fee for older titles as well as cheap rentals of new releases, providing the kind of value that online customers want. In contrast, EST, which is much more profitable for studios on a per-transaction basis, is stuck in the doldrums."

Despite the fact that Netflix and Apple both represent different ends of the market and offer different products (SVOD services tend to have older titles while transaction VOD services have newer titles as well as older titles), they share a common interest in hardware. Netflix is available on various devices like game consoles, smartphones, tablets, etc. ITunes is also available on many devices, but mainly benefits Apple by being the proprietary media player program for Apple products.

The report also showed that all U.S. transactional VOD revenue grew 75 percent from $155 million in 2010 to $273 million in 2011. SVOD revenue far surpassed this number, hitting $454 million in 2011 from only $4.3 million in 2010. This put SVOD in the lead, and with Netflix being the king of SVOD services, Apple was knocked down a peg.

Source: IHS Media Relations

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RE: Limped in
By sprockkets on 6/2/2012 8:05:35 PM , Rating: 3
Why? It's easier to mention what devices can't run netflix than can. Heck, my friend uses netflix on the wii and it looks just fine surprisingly.

RE: Limped in
By StevoLincolnite on 6/2/2012 10:14:08 PM , Rating: 1
Why? It's easier to mention what devices can't run netflix than can.

Not exactly. If you're outside the US, no device can use Netflix; unless you use a VPN of course. :P

RE: Limped in
By messele on 6/3/2012 6:46:15 AM , Rating: 2
More nonsense and facts presented by amateurs.

I happen to not be American yet oddly enough have full access to Netflix via my Apple TV with no network trickery simply by entering a 3 digit code to link it via Apple to my iTunes account.

Couldnt have been simpler, works like a dream and presumably Apple get a kickback for featuring it in their software.

RE: Limped in
By StevoLincolnite on 6/4/2012 10:40:04 PM , Rating: 2
But that requires iTunes... Which has never ended up on my Desktop and I doubt it's available in Australia either.

RE: Limped in
By michael2k on 6/3/2012 11:35:24 PM , Rating: 2
You think Apple supporting Netflix out of the box isn't favoring Netflix? Unfortunately Apple hasn't licensed it's AirPlay nor FairPlay video playback.

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