Netflix over 10 times bigger than iTunes rental service, says Gleacher analyst

Gleacher & Company analyst Brain Marshall claims that Apple’s digital video rental service available through iTunes is less than one tenth the size of Netflix’s rental business. Netflix, according to Marshall’s note on Wednesday, serves over 5 million daily rentals while Apple sells only about 475,000 rentals through iTunes each day. Apple has apparently not yet been able to translate strong Apple TV sales into significant revenue. Marshall believes that approximately 90% of Apple’s daily iTunes TV purchases are 99¢ rentals. He also believes rentals, which average $2.99, make up approximately 75% of movie viewings bought through iTunes. Apple’s revenue from iTunes rentals is estimated at approximately $60 million per quarter, however, while Netflix reported $553 million in revenue in the third quarter of 2010.

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