According to a new report by market research from IHS iSuppli, Netflix has surpassed iTunes as the leader in the $992 million US online movie business. It seems as though people like the subscription model better than Apple’s on demand model. Just bill Americans’ credit cards each and every month and let them enjoy the content buffet.
The data also shows the continued power of the long tail. Netflix has a bunch of old content and obscure documentaries in addition to newer TV shows – whereas iTunes has a focus on what’s new. So if you want that old episode of Law & Order because you miss Elliot; you go to Netflix.
From Ars Technica:
According to IHS’ numbers, Netflix’s share of the online movie market jumped from a mere 0.5 percent in 2010 to 44 percent in 2011. Comparatively, Apple fell from 60.8 percent in 2010 to just 32.3 percent in 2011. The number three player, Microsoft, also fell between 2010 and 2011—from 16.7 percent to 7.6 percent. The only other company in the IHS ranking that grew year over year was Vudu (owned by Walmart), which went from 2.7 percent in 2010 to 4.2 percent in 2011.
(via Ars Technica)