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NPD Group: iTunes owns the internet video market
We'll find out how Apple's financial fortunes are faring a bit later this afternoon, but for now, there's a report out of The NPD Group showing that Apple now dominates home digital video the way it does the digital music market. The numbers are staggering: Apple's iTunes Store had a 67 percent share of electronic sell-through (EST) for television shows in 2012. How big is that? The nearest competitor was Xbox Video with a 14 percent share of EST. The stats were also in favor of Apple for feature-length movie downloads, with the company pulling in a 65 percent share of EST. Xbox Video and Amazon Instant video weren't even close in the competition, each having a 10 percent share. While Apple's lead wasn't as incredible in the internet video-on-demand sector, iTunes still led the way with 45 percent of the market. Despite Amazon Instant Video's popularity, it has less than half of the movie rental traffic of Apple at just 18 percent. Russ Crupnick, senior VP of industry analysis at NPD, believes that Apple's early moves in the market allowed the company to dominate the digital sales and rental markets for movies and that customer satisfaction is what's keeping the numbers high. Crupnick notes, "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."
