NPD: Netflix handles 61 percent of streamed movies

By Geoff Duncan March 16, 2011

Image used with permission by copyright holder

If there were any doubts who is the market leader for downloaded and streamed movies, market research firm NPD wants to put them to rest: according to NPD, Netflix accounted for 61 percent of downloaded and streamed movies during January and February 2011, at least among the home video market in the United States. Cable operator Comcast managed a distant second place with an 8 percent share during the same time period (largely due to its on-demand services), and there was a three-way tie for third place between Apple, DirecTV, and Time Warner.

However, perhaps as importantly, NPD found that digital video now accounts for a quarter of all home video volume: DVD and Blu-ray discs still account for most home video viewing.

“Sales of DVDs and Blu-ray discs still drive most home-video revenue, but VOD and other digital options are now beginning to make inroads with consumers,” said NPD analyst Russ Crupnick, in a statement. “Overwhelmingly digital movie buyers do not believe physical discs are out of fashion, but their digital transactions were motivated by the immediate access and ease of acquisition.”

The market share figures are based on over 10,000 customer surveys of use consumers aged 13 years or older via NPD’s VideoWatch Digital tracking service.

NPD also looked at customer satisfaction with various types of digital video delivery systems. Customer lauded electronic sell-through (EST) systems like iTunes for having the most current releases, while they also singled out Netflix for having the “best overall shopping experience” and best “value for price paid.”

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