Apple Continues to Dominate U.S. Online Video Purchase and Rental Markets
NPD today released a new report highlighting the U.S. online digital video market for 2012, finding that Apple continues to dominate both purchases and rentals.
In looking at purchased content, Apple holds a commanding 67% of the TV show market and 65% of the movie market, with its closest competitors Xbox Video and Amazon each holding roughly 10% of the market.
While the competition is tighter in the rental market, Apple still holds a solid lead with 45% of the market for digital movie rentals, with Amazon taking second place at 18%.
“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,” said Russ Crupnick, senior vice president of industry analysis at NPD. “While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long.”
Notably, NPD's study does not include subscription services such as Netflix and on-demand content from cable providers. Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.