Netflix beats Apple in online movie race

Netflix was the top online movie service in the US last year, surpassing Apple’s iTunes, according to IHS Screen Digest. It reports that Netflix’s share of US online movie revenue soared to 44% 2011 while Apple’s share of total revenue declined to 32.3% last year, down from a 60.8% in 2010.

“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 US$992 million (€795 million) and it is expected to double this year as well.”

IHS says that revenue from SVOD services in the US reached US$454 million last year. Meanwhile, transactional VOD expanded to US$273 million in 2011.

Tags: Apple, Netflix, US