Quick Note: Netflix Beats Apple in 2011 U.S. Online Movie Business Revenue
June 1, 2012 8:04 PM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
RE: Limped in
6/3/2012 10:09:01 AM
All of these devices in my home have Netflix and other various streaming services.
Wii, X-Box 360, Sony BLU-RAY player, LG BLU-RAY player, Toshiba HDTV.
Practically every BLU-RAY player I see has Netflix and more built in and your going to buy a BLU-RAY player for your HDTV. Just like many people bought a PS3 because of the BLU-RAY ability now the PS3 has movie streaming services.
The question is why would I give Apple $99.00 just add their streaming service?
I think they should make it a channel like Netflix, Hulu, Crackle, and Amazon and let it get incorporated into other devices. This would increase their user base and if you want some additional functionality that the Apple device offers then you might commit to the $99.00 device they offer. Most people just want to play the movie and I see no reason to give Apple $99.00 to add their streaming service which is just one more streaming service to the dozens I already have access to because they are built into the devices I purchased. Its a waste of another input.
RE: Limped in
6/4/2012 12:15:01 PM
Apple does NOT like to share equal playing field.
Apples solution will be to sell applefans an Apple branded smart tv that has the internals of the Apple TV device.
RE: Limped in
6/4/2012 2:00:16 PM
Probably but Microsoft just dropped a ton of enhancements to the X-Box 360 including Music Service, Tablet Streaming and controlling, 4 ESPN channels including Monday Night Football, NBA, and a ton of other enhancements. With 67 Million X-Box 360's out there and a low price tag its hard to choose Apple TV over a 360.
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
Netflix CEO Rants About Comcast's Xfinity, Net Neutrality on Facebook
April 16, 2012, 12:18 PM
Source: Apple to Enter TV Display Business Late This Year
June 21, 2011, 4:34 PM
Target Data Breach Compromises 40 Million Customer Credit/Debit Cards
December 19, 2013, 12:06 PM
Netflix to Stream House of Cards in 4K via HEVC H.265 Compression
December 19, 2013, 11:38 AM
Overzealous Porn Filters in the UK Block Educational Sites
December 19, 2013, 10:30 AM
Hulu to Hit $1 Billion in Revenue by End of Year
December 18, 2013, 1:35 PM
Harvard Undergrad Busted by Wi-Fi after Making Bomb Threat to Avoid Finals
December 18, 2013, 10:37 AM
San Francisco's Market Street Receives Free Outdoor Wi-Fi
December 17, 2013, 11:14 AM
Most Popular Articles
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
Ten Senators Sponsor Bill to Scrap Corn Ethanol Market Manipulation
December 13, 2013, 1:52 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Metro-Enabled Firefox Browser Expected to Land After Two Years of Work
December 12, 2013, 5:21 PM
Top Microsoft Graphics Genius Defects to Google
December 17, 2013, 4:27 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information