PSound
05-22-09, 06:40 PM
It is interesting that they note that lack of home storage is a limiting factor to purchasing movies. I do expect that to change as NAS becomes as ubiquitous thumb drives and portable hard drives.
Apple’s iTunes may dominate permanent movie downloads, accounting for two-thirds of the fledgling business, but Netflix has established itself as equally powerful in the potentially larger sector of digital rentals.
According to NPD Group, just 3% of consumers said they bought a permanent movie download for their PC or TV in recent months. Yet 7% said they digitally rented a movie from an online source for their computers and TV sets.
When NPD asked people where they bought a download-to-own movie in the past six months, 65% said iTunes. Amazon.com’s Video on Demand was runner-up at 17%. PlayStation Store was third, and both Vudu and CinemaNow marginally registered in the survey.
Of people surveyed who said they had digitally rented movies, 68% said they did so from Netflix. Next came iTunes at 21%, followed by Xbox Live. PlayStation Store and Amazon Video on Demand had single-digit percentage showings.
While other sell-through and rental Web services charge per transaction, Netflix’s business model allows for unlimited movies and TV episodes as part of consumers’ subscription plans. However, Netflix’s selection is dominated by catalog, and other services offer generally more attractive newer releases.
“If there is any error in iTunes’ ways, it is their initial belief that people will want to own movies the same way they want to own music,” said Russ Crupnick, NPD analyst. “It might have been successful on the TV side. But with movies, it’s turning out to be much more of a rental.”
NPD credits Netflix’s strong online rental position to the way the company has quickly integrated its streaming service into a wide range of devices.
“They are now ubiquitous when it comes to rentals. It’s in connected TVs, in the Xbox 360 and Blu-ray players,” said Crupnick. “It’s also this cool hot brand, and your friends recommend it to you.
http://www.videobusiness.com/article/CA6660103.html
Apple’s iTunes may dominate permanent movie downloads, accounting for two-thirds of the fledgling business, but Netflix has established itself as equally powerful in the potentially larger sector of digital rentals.
According to NPD Group, just 3% of consumers said they bought a permanent movie download for their PC or TV in recent months. Yet 7% said they digitally rented a movie from an online source for their computers and TV sets.
When NPD asked people where they bought a download-to-own movie in the past six months, 65% said iTunes. Amazon.com’s Video on Demand was runner-up at 17%. PlayStation Store was third, and both Vudu and CinemaNow marginally registered in the survey.
Of people surveyed who said they had digitally rented movies, 68% said they did so from Netflix. Next came iTunes at 21%, followed by Xbox Live. PlayStation Store and Amazon Video on Demand had single-digit percentage showings.
While other sell-through and rental Web services charge per transaction, Netflix’s business model allows for unlimited movies and TV episodes as part of consumers’ subscription plans. However, Netflix’s selection is dominated by catalog, and other services offer generally more attractive newer releases.
“If there is any error in iTunes’ ways, it is their initial belief that people will want to own movies the same way they want to own music,” said Russ Crupnick, NPD analyst. “It might have been successful on the TV side. But with movies, it’s turning out to be much more of a rental.”
NPD credits Netflix’s strong online rental position to the way the company has quickly integrated its streaming service into a wide range of devices.
“They are now ubiquitous when it comes to rentals. It’s in connected TVs, in the Xbox 360 and Blu-ray players,” said Crupnick. “It’s also this cool hot brand, and your friends recommend it to you.
http://www.videobusiness.com/article/CA6660103.html