Netflix overtakes Apple in Online Movie Market

Apple has dominated online movie business for years, at least in terms of revenue generation.  A new study by market intelligence firm IHS iSuppli suggests that Netflix has overtaken Apple to be market leader.

“2011 marked a sea change in the online movies business that saw the balance of consumer spending shift from a DVD-like transactional model to more TV-like subscription approach,” said Dan Cryan, research director for digital media at IHS. “The online movie business more than doubled in 2011 to reach $992 million and it is expected to double this year as well.”

Netflix saw its share of (U.S.) domestic online movie market grow from less than 1% in 2010, to earning more than 44% of the market in 2011, while Apple's share fell from 60.8% to 32.2%.  Amazon accounted for most of the rest of market revenues.

Source - Apple Overtaken By Netflix in Online Movie Revenue, MediaPostNews