Apple owns just 4% of video streaming market; Netflix dominates with 61%

The NPD Group on Tuesday released market share data for digital video streaming in the U.S. Not surprisingly, Netflix continues to dominate the market with its Watch Instantly service. 61% of digital movies streamed in the U.S. are served by Netflix, and its closest competitor is Comcast, which sits at a distant second with 8%. Interestingly, Apple sits in a three-way tie for the No. 3 spot with just 4% of the market. Apple’s refreshed Apple TV was deemed by many to be a success last year, with sales having surpassed 1 million units this past December. Even when combined with iTunes movies streamed to computers, however, the Apple TV still hasn’t helped Apple make a dent in the digital video market. With new players like Amazon and Redbox entering the space and Netflix still going strong, Apple may have to be a bit more innovative if it hopes to make a dent in the market. Hit the break for the full press release.

Six Out Of 10 Digital Movies Are Streamed via Netflix

NPD’s VideoWatch Digital tracking service reveals that subscription streaming, digital movies purchased online, and Internet and cable video-on-demand (VOD) services are becoming a part of many Americans’ entertainment diets.

PORT WASHINGTON, NEW YORK, March 15, 2011 – According to a recent review of the home video market in the U.S. by The NPD Group, a leading market research company, Netflix’s share of digital movie units — downloaded or streamed — reached 61 percent between January 2011 and February 2011, followed by Comcast at 8 percent, and a three-way tie for third at 4 percent among DirecTV, Time Warner Cable, and Apple. Based on information from NPD’s new VideoWatch Digital tracking service, digital video now makes up one quarter of all home video volume.

“Sales of DVDs and Blu-ray Discs still drive most home-video revenue, but VOD and other digital options are now beginning to make inroads with consumers,” said Russ Crupnick, entertainment industry analyst for NPD. “Overwhelmingly digital movie buyers do not believe physical discs are out of fashion, but their digital transactions were motivated by the immediate access and ease of acquisition provided by streaming and downloading digital video files.”

NPD also compared consumer-reported satisfaction with four modes of digital-video acquisition: electronic sell-through (EST), Internet VOD (iVOD), cable VOD, and subscription streaming. Consumers clearly recognize that EST services like iTunes have the most “current releases available,” while Netflix streaming gets credit from customers for providing the best “overall shopping experience” and “value for price paid.”

Data note: The information in this press release is from VideoWatch Digital, which is based on online surveys of U.S. consumers age 13 and older conducted between January and the third week of February 2011. The final reporting is based on 10,618 completed surveys.