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Citi: 27% watch shows on Netflix, 8% watch iTunes

updated 12:05 pm EST, Thu December 22, 2011

Citi study shows Netflix stil in comfortable lead

A new Citi Investment Research study from analyst Mike Mahaney points to Netflix still increasing its share of Internet movie and TV viewing. Between May and December, Netflix's share of those watching movies on TV grew from 20 to 27 percent. Most of that came at the expense of Hulu, which was down from 19 percent to 15.

Most providers, including Amazon, Comcast, CBS, and NBC, were also up significantly. ABC was down, however. iTunes was almost exactly flat at eight percent, being outranked not just by Netflix and Hulu but ABC, Amazon's Instant Video, CBS, and "other."

The Netflix share grew even as the provider made a number of big missteps, such as raising prices for some viewers and its short-lived, ill-received plans for the Qwikster spinoff. Those "extremely satisifed" with Netflix plunged from 50 percent to 18, but the number of those either "very" or "moderately" happy went up, showing that most who were upset at the Netflix decisions weren't angered enough to have serious thoughts of leaving the service.

Most had even cooperated with what Netflix wanted. About 54 percent had made no changes to any of their plans, while 28 percent dropped DVDs and Blu-rays in favor of the streaming Netflix prefers. Eight percent preferred to go DVD-only, suggesting that just 10 percent had either stepped up their plans or cancelled.

The share split suggested that Apple needed to significantly revise its strategy if it wanted to court movie and TV viewers more used to subscriptions. Of the group, it was the only one using pay-per-show exclusively. Most had at least some kind of subscription service or, in the cases of Hulu and studio sites, gave at least limited access for free in return for ads. [via TechCrunch]





By Electronista Staff
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Comments

  1. bleee

    Mac Enthusiast

    Joined: Mar 2002

    +6

    Apple.. iTunes...

    I have both and use both... my beef with Apple is that the majority of their rentals are $4.99 across the board for both new and old movies. I've also been screwed over at least 4 times with the 24hr time restriction, I'll rent a movie the night before start watching it and stop... come home from work the next day and the rental expired. Prices for seasons passes are outrageous especially when I can't get them during the season it's usually after the season. iTunes just got the first season of Board Walk Empire from HBO... and they want $50 for it... get out of town...

    It's probably not all Apples fault the majority of the blame probably falls on the studios and television networks for the crazy pricing.

  1. gprovida

    Fresh-Faced Recruit

    Joined: Feb 2006

    +1

    Money vs Numbers

    NETFLIX views are almost exclusively for old [which I love] and much less popular movies at low subscription cost [and Movie Company earning] vs iTunes with significant earning [to studios] for in general much more current and popular shows. Yes iTunes does do the older, but the money is in the new stuff. So from a Studio perspective where are they making for most money, NETFLIX or iTunes?

  1. coffeetime

    Mac Enthusiast

    Joined: Nov 2006

    +3

    Netflix's goal

    Netflix wants to eliminate DVD/Blu-Ray so bad so they can use that extra cash for better streaming contents (Hollywoods wants more $$$$ for latest contents on streaming). The DVD/Blu-Ray's shipment expense along already costs Netflix 300 millions dollars per year.

  1. Grendelmon

    Dedicated MacNNer

    Joined: Dec 2007

    +3

    The future is

    ...subscription based streaming, not the 1990s "Blockbuster" model that is dying a slow death. And throw in Apple's ridiculous prices and you can pretty much guarantee that iTunes is always going to be at the bottom of online rentals.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +2

    Re: Money vs. Numbers

    And where are you getting your numbers about what people on netflix are watching vs. iTunes?

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