iTunes is King of Online Video Downloads, Survey Says


Apple’s iTunes is king when it comes to video-on-demand content, according to the latest NPD Group report which charts the latest numbers from the home digital-video sector.

Russ Crupnick, senior vice president of industry analysis at NPD, summarized Apple’s domination in a statement: “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. While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long.”

In terms of television shows, Apple has 67 percent of the market based on electronic sell-throughs, which equates to downloads, not rentals. They easily dominate Xbox Video’s share of the market (14 percent), other competitors’ (10 percent) and recent competitor Amazon Instant Video (8 percent). Apple also dominates the market when it comes to full-length movies at 65 percent, again beating Xbox Video (10 percent), Amazon Instant Video (10 percent) and other competitors (16 percent).

Competitors are also having a tough time booting Apple from the top spot of the internet video rentals market, where it has a 45 percent share of the market. It leaves Amazon Instant Video (18 percent), VUDU (15 percent), Xbox Video (14 percent) and other competitors (8 percent) in the dust.

The NPD Group report also points out that Apple gets high marks for customer satisfaction, with 77 percent of Apple customer saying that their iTunes shopping experience was excellent or very good, 75 percent happy with iTunes’ new releases and 73 percent praising the overall selection at the iTunes store.

Crupnick added: “We’ve seen big name entertainment retailers lose share, and even close, as their customer satisfaction metrics faded; however, that’s clearly not the case with iTunes. Customers are quite happy with the store.”

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