Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) iTunes Dominates The Market In These 2 Areas, Report Says

Page 1 of 3

Apple Inc. (NASDAQ:AAPL), as a whole, may be having some trouble keeping its title as the tech leader thanks to a widening pool of competition that provides various services with better prices, better quality, or – is it possible – both. Certainly, Apple has been beleaguered of late with scores of bad news, which essentially adds up in the public consciousness that Apple doesn’t measure up like it used to. It’s over the hill. Competitors have caught and passed it. You can’t pay people to take the stock.

Well, at least for a minute, Apple Inc. (NASDAQ:AAPL) isn’t being completely left behind. Its iTunes service is in a dominating position for Apple, and it has been a consistently big part of the company’s bottom line for a while now. A recent study confirms that Apple is the king when it comes to two key digital-content areas – TV downloads and movie downloads. The survey, by NPD Group, showed that Apple iTunes is the preferred site for users to buy and download TV shows and movies, and the rest of the competition isn’t even on the track, much less being lapped.

The results show that Apple Inc. (NASDAQ:AAPL)’s iTunes owns 65 percent of the digital movie download market and 63 percent of the TV market. The top competitors (and we used the term loosely) in these two sub-markets are Xbox by Microsoft Corporation (NASDAQ:MSFT) and Prime Instant Video by Amazon.com, Inc. (NASDAQ:AMZN). Both have 10 percent of the movie-download market, while Xbox boasts 14 percent of TV downloads and Amazon.com 8 percent. All other competition combined for 16 percent share for movies and 10 percent for TV.

Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Barnes & Noble Inc. (BKS)

In another segment called Internet video on demand (iVOD) – which is essentially digital-content rentals –  Apple Inc. (NASDAQ:AAPL)  is still in firm control there too, thought not by so wide a margin. The iTunes market share here is 45 percent, which easily outdistances Amazon.com, Inc. (NASDAQ:AMZN) and its 18-percent share. It is estimated that iTunes now brings in about $2 billion in revenue per year for Apple.

And no, the survey did not reflect overall digital-content consumption by taking into account subscription services like Netflix, Inc. (NASDAQ:NFLX), as that company is the leader in overall digital video content use, but it is not a prominent source for buying or renting individual movies or TV shows.

What do you think of the survey? Do you use Apple Inc. (NASDAQ:AAPL) for your digital-video purchases? If so, why? If not, why not? Let us know in the comments section below.

Check out a couple NPD graphs on the following pages:

Page 1 of 3
Loading Comments...