A new report from market research firm IHS iSuppli indicates that Netflix is now the dominant force in the online movie business, dethroning Apple’s iTunes.
“The firm credits Netflix’s success with its focus on TV-like subscriptions, which it sees as superior to the company’s DVD mail service or iTunes’ more traditional video on demand (VOD) model,” reports Ars Technica.
The report’s numbers note that Netflix went from 0.5 percent of the online movie market in 2010 to 44 percent in 2011.
Despite bumping up its prices, Netflix made deals with Apple, Microsoft, Roku, and others to be included in set-top boxes and dramatically increased its accessibility 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,” adds the post.
The online video market doubled revenue in that time frame and is expected to double again in 2012.
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