Netflix tops Apple in booming US online movies

The US online movie business more than doubled in 2011 to rake in $992 million and will almost double again this year, a research report showed Friday.

The biggest surge came from Netflix, which shifted its focus to subscription video on demand and snagged 44 percent of the market, overtaking Apple's iTunes service, said the report from IHS iSuppli.

"2011 marked a sea change in the online movies business that saw the balance of consumer spending shift from a DVD-like transactional model to more TV-like subscription approach," said Dan Cryan, research director for digital media at IHS.

Netflix, which accounted for less than one percent of this market in 2010 to 60 percent for Apple, turned the tables last year. Apple's share of total revenue declined to 32.3 percent, despite enjoying strong revenue growth.

The report said Americans are showing less interest in owning copies of movies, and opt instead to rent for a single time or have a subscription for viewing on demand.

"We are in the midst of a significant change in the way people pay to consume movies online," Cryan said, adding that all of the significant revenue growth came from rental business models.

"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 consumers want."

The IHS report said Netflix and Apple are leading by focusing on the hardware side of the business. Netflix is available on a very wide range of connected devices, while iTunes use a variety of Apple devices.

"Effectively the market has split," Cryan said. "Netflix and Apple are competing for some of the same consumer time and money. However, the core value proposition of the two services is actually very different."

Netflix rules the subscription market, with its closest competitor, Hulu, less than 10 percent of its size.

Apple's iTunes continues to dominate the rental segment, accounting for 63.0 percent of revenue in this area, while Walmart's Vudu captured 8.2 percent.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • AFP monitoring deployment of Chinese seaplanes in Spratlys
    AFP monitoring deployment of Chinese seaplanes in Spratlys

    The Armed Forces of the Philippines (AFP) is adopting a wait and see approach amid reports that China will soon deploy seaplanes to further strengthen its maritime claims in the disputed Spratlys. Brig. Gen. Joselito Kakilala, spokesman for the military and commander of the AFP Civil Relations Service, said they have yet to ascertain the real purpose behind China’s continuing aggressive moves in the region. “We will wait and see before coming up with an official stand,” Kakilala said when …

  • US eyes access to Phl bases in 8 locations
    US eyes access to Phl bases in 8 locations

    The United States has asked for access to Philippine military bases in eight locations to rotate troops, aircraft and ships as Washington shifts its forces to Asia and as China expands its military presence in the South China Sea. US Defense Secretary Ash Carter, in a speech in Arizona, has outlined Washington’s next phase in its Asia “pivot,” deploying its most sophisticated destroyers, bombers and fighters to the region. The Asia “pivot” has already seen US Marines rotating through the …

  • Washington bucks China’s aggressive actions
    Washington bucks China’s aggressive actions

    Short of condemning China’s aggressive actions in the West Philippine Sea, a senior US military official said Washington does not support any act of coercion and bullying. “We don’t stand for coercion, bullying and aggressiveness,” said Brig. Gen. Christopher Mahoney, assistant US military director for  Phl-US Joint Balikatan Exercises 2015. At the sidelines of this year’s joint military exercises’ static aircraft display held at Clark Air Base in Pampanga, Mahoney told a media briefing that …

  • ‘Giving Bangsamoro police control is constitutional’
    ‘Giving Bangsamoro police control is constitutional’

    The proposed grant to the chief minister of the envisioned Bangsamoro region of operational control over police forces in the area is consistent with the Constitution, a senior administration lawmaker said yesterday. It is clear in the proposed BBL that the Bangsamoro police will be part of the Philippine National Police (PNP), while the Bangsamoro Regional Police Board (BRPB) will be part of the National Police Commission (Napolcom) and will carry out Napolcom’s mandate in the region,” he …

  • Noy off to KL for Asean meet
    Noy off to KL for Asean meet

    President Aquino will arrive here this afternoon with Manila hopeful of support from the Association of Southeast Asian Nations (ASEAN) to achieve peace and stability in the West Philippine Sea (South China Sea) as well as economic prosperity and inclusive growth among the people in the region. Philippine Ambassador to Malaysia Jose Eduardo Malaya III said that with respect to the dramatic developments in the South China Sea, Malaysian Foreign Minister Anifah Aman had called for the early …

  • Madrid Fusion Manila reignites Pinoy appetite for great food
    Madrid Fusion Manila reignites Pinoy appetite for great food

    After months of preparation and hard work from both the government and private sectors, the future of food is finally here in the country’s capital. Madrid Fusión Manila opened its doors on Friday to an international delegation who eagerly awaited the discussions of some of the most renowned and revered names in the culinary world. Madrid Fusión Manila is a historic gastronomic event marked by talks and exhibitions that showcases Spain and the Philippines’ shared cultural heritage, as well as …

  • Family receives execution order, visits Mary Jane
    Family receives execution order, visits Mary Jane

    As Philippine officials continue to plead for a stay in the execution of death convict Mary Jane Veloso, the Indonesian government has sent a notice to her family ordering her execution at an undisclosed date, the Department of Foreign Affairs (DFA) said yesterday. Foreign Affairs spokesman Charles Jose said Indonesian authorities also allowed Veloso’s family and her lawyers to visit her on Nebu Kambangan execution island. “The Prosecutor gave notice letter to the family of Mary Jane …

  • ‘Pinoys’ cheerful attitude backs tourism campaign’
    ‘Pinoys’ cheerful attitude backs tourism campaign’

    The 2015 World Happiness Report ranking the Philippines as 90th among 158 happiest countries is a validation of the government’s tourism campaign, “It’s more fun in the Philippines,” a Palace official said yesterday. The news did not come as a surprise as Filipinos are naturally cheerful, Secretary Herminio Coloma Jr. of the Presidential Communications Operations Office said. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options