NPD has released research which shows that Apple’s iTunes holds a 67 per cent share of the digital TV download market, as well as a further 65 per cent share in the movie market.
Closest rivals were Microsoft’s Xbox Video and Amazon’s Instant Video, however, neither of these came close to iTunes. Xbox Video accounted for only 10 per cent in movies and 14 per cent in TV shows, with Amazon amounting 10 per cent for movies and 8 per cent share for TV shows.
As well as this, Apple snatched a 45 per cent market share of online movie rentals, more than twice of its nearest competitor Amazon, which finished with an 18 per cent share. VUDU gained a 15 per cent share with Xbox taking a 14 per cent share.
Russ Crupnick, NPD analyst, said that: “Apple has successfully leveraged its first-mover advantage and of iTunes, iOS and the popularity of iPhone and iPad to dominate the digital sale and rental markets for movies and music.”
The success of Apple is founded in its high customer satisfaction ratings; eight out of 10 iTunes video customers rated their shopping experience as excellent or very good.
The study only looked at video content that is purchased by consumers on a permanent basis, meaning that online video giants such as Netflix or Lovefilm were not taken into account. Netflix could possibly rival iTunes; it’s renowned for consuming a large amount of internet bandwidth due to the popularity of its service
The iTunes service is now estimated to bag an extra $2 billion per year for Apple - not bad at all.
[Via Apple Insider]