Netflix still Vastly more Popular than iTunes for Movies and TV Shows

A recent study by City Investment Research shows that Netflix is still the top dog when it comes to Internet watching of television shows and movies, growing by seven percent between May and December of this year. Popular media-streaming website Hulu dropped by four percent in the same time period.

Netflix’s share of  Internet viewers went from 20 to 27 percent, even while Hulu was dropping from 19 to 15 percent. Other Internet viewing providers like, Amazon, Comcast, CBS, and NBC also showed an increase in the share. However, iTunes, the stalwart that it is, didn’t budge in its share of viewing. Apple’s media streaming service held steadfast at a mere eight percent, which is even lower than the “other” category.

It is surprising that Netflix gained popularity with its “Qwikster” debacle, as well as the significant increase in subscription price that caused the company’s stock to plummet in a short period of time. It seems that the general public prefers the reliability of Netflix’s vast selection, easy to use service, and variety of ways to access the Internet viewing.

Apple’s single-digit share of the Internet viewing public speaks to the company’s lack of understanding of what consumers want from their media streaming service. ITunes does not offer any kind of subscription-based usage of its service, unless one counts subscriptions to a specific show’s entire season. Apple would do well to restructure its service to offer a monthly subscription for streaming movies and TV shows. I would pay a monthly service for on-demand access to specific channels, like Comedy Central or The Discovery Channel.

Whatever Apple does, this study shows that the company needs to do something drastic if it wants to compete with other Internet viewing services. What would you like to see made available in iTunes?

[Source: Citi Investment Research]

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About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik

  • http://twitter.com/ArmanMe Arman

    iTunes needs instant streaming on all devices (including PCs) and unlimited subscriptions.

  • Anonymous

    To compete on price Apple would have to account for the price of unlimited broadband and sell unlimited access to their library of TV shows and Movies all for less than cable TV provides. That means they could only sell unlimited access for no more than between $20 to $50 per month.

  • erik superman

    It is very possible that any of these companies can present
    a fantastic option for consumers to watch ONE or two different kinds of
    media.  I still prefer, however, my all-inclusive DISH Network account,
    and the recently-released Blockbuster Movie Pass.  I have extremely varied
    interests, and when I turn on the tube I like having the option to catch a
    movie, a show, maybe a game, sports, comedy, the list goes on!!  I very
    much dislike the idea of constantly searching online for only one or two
    genres, as is the case with Hulu, Netflix and others.  With the Blockbuster Movie Pass,
    I can watch any of the over 100,000 title library selections, and get them
    either by mail, in-store exchange or streaming live.  I love the customer
    service at DISH, and I absolutely favor the option to get live-action TV. 
    My boss at DISH also told me, when this came out, that DISH would be adding an
    additional 21 HD movie channels to the deal.  For my dollar and time, the
    combination of all these features is what makes DISH a much better option!!