NPD Group announced that Netflix’s share of streaming video content market has reached a definitive 61 percent. Comparatively, that’s about fifteen times the share that Apple’s iTunes movie store has reached. Does Netflix have an edge on its competitors? How will the rental service take advantage of its market share?
With Apple’s recent push to make a significant entry in the video renting business, the company’s minute market share of four percent could be somewhat surprising. However, Apple’s in a different business than Netflix is. By choosing to go through iTunes, consumers pay for each movie rental individually, none of which are cheap. Netflix has a subscription-based model that is fiscally conservative and efficient. Its expansion onto a plethora of devices has been an extra incentive for consumers to invest in a monthly subscription.
Apple’s misfortune is Netflix’s success. In fact, the proliferation of Netflix subscribers has taken a significant slice of Comcast’s pie. The cable company’s video-on-demand feature only holds about eight percent of the market. NGP also threw in an additional factoid that proves that the digital age is upon us – nearly 1/4 of all video content consumed at home is either streamed or downloaded.
With its ever-growing user base, Netflix is actually considering entering the exclusive original programming market. Akin to HBO and other premium cable channels, the streaming and rental service has entered talks with David Fincher and Kevin Spacey to recreate the classic UK political drama House of Cards. The duo has reportedly been negotiating with HBO, Showtime, and AMC, but Netflix has offered to take on two seasons of the program, which would mark the first time that the service will pay for exclusive distribution rights to a television show.
Some sources have indicated that the Netflix is willing to dole out $100 million dollars for the program, but others have said that the number is much lower.
What do you, fellow movie and television enthusiasts, think? Is Netflix turning into the next HBO? Would you want to watch an original television series on the streaming service? Is it impressive or surprising that Netflix has trounced Apple in video streaming content to consumers? Sound off in the comments below.