Apple iTunes and Netflix Dominate the Online Video Market

Newly released statistics indicate that Apple’s iTunes and subscription service Netflix continue to lead the Internet video market. Earlier this month, we reported that Netflix held a clear lead in SVOD viewership over Hulu and Amazon for Q1. Yesterday, Apple announced that iTunes viewers are purchasing more than 800,000 TV episodes and 350,000 movies per day. Additionally, Apple announced that HBO GO and WatchESPN are now available directly on Apple TV.

According to the Apple press release, “iTunes users have downloaded more than one billion TV episodes and 380 million movies from iTunes to date.”

“Apple TV users can choose from an incredible selection of programming including over 60,000 movies and over 230,000 TV episodes, as well as the world’s largest collection of music on the iTunes Store,” adds the release. “Apple TV also offers great content from Hulu Plus, Netflix’s streaming catalog, live sports from MLB, NBA and NHL as well as Internet content from Vimeo, YouTube and Flickr.”

In addition to HBO GO and WatchESPN, new content providers available on Apple TV include Sky News, Crunchyroll and Qello. Crunchyroll is a leader in Japanese Anime and Asian media. Qello is an on-demand streaming service for HD concerts and music documentaries.

“In a recent study, the NPD Group, a research firm, said Apple was by and large the leader for home video downloads,” reports The New York Times. “For television shows, iTunes accounted for 67 percent of this market in 2012, and Microsoft’s Xbox video service was a distant second with 14 percent of the market, NPD said. For movies, iTunes had a 65 percent share of the market, with Amazon and Microsoft far behind at 10 percent each.”

According to NPD’s VideoWatch VOD report, in Q1 2013 the number of viewers watching TV shows using subscription video-on-demand (SVOD) services increased 34 percent over last year. The TV category accounts for 80 percent of streams, for which Netflix holds an 89 percent share. “Hulu Plus showed healthy growth in 2013, with 10 percent of TV streams in Q1, while Amazon Prime accounts for just 2 percent of the overall TV units streamed,” notes the NPD release.

“To put things in perspective, subscription-based streaming is the most popular method for watching online video,” explains NYT. “For all the movies watched at home in the first quarter of 2013, 19 percent of consumers watched a movie using a subscription-based service like Netflix, and 5 percent downloaded a movie rental from an on-demand service like iTunes, according to Russ Crupnick, an NPD analyst who follows the online video industry. About 74 percent of consumers watched a movie on a DVD or Blu-ray disc they bought or rented, he said.”