Corey Tamas, June 4, 2012
The movie-streaming gigantor knows as Netflix has overtaken one of their greatest competitors: Apple. Research firm IHS says that Netflix’ share of online movie sales has climbed to roughly 45 percent as of last year, where Apple’s share fell a whopping 29 percent from 61 percent to 32 percent. Despite Netflix’ bumbling attempts to split the company up into separate entities for streaming and physical DVD rentals (not to mention their genius decision to use “Qwikster” as a brand name), consumers were happy to bring Netflix into their home.
[quote]Netflix used to offer its streaming and DVD mail-order services together for $9.99. When the company split the package into two $7.99 options, the move irked some customers and led to cancellations and slower growth. Still, the streaming part of the industry is poised to more than double to $1.1 billion this year, Englewood, Colorado-based IHS predicted.[/quote]
Interestingly, it’s Apple itself who helped Netflix get into the living rooms of the world: Apple TV allows users to stream content from iTunes, but also from Netflix, so anyone who owns the device can pick and choose as it suits them. It would be interesting to see whether Netflix continues to grow to the point where they begin to drink a little too much of Apple’s milkshake and, then, if Apple will quietly remove them from Apple TV. Things like that have been known to happen.
Source: BloombergFollow @macgasm