1. Digital Retailers: iTunes remains dominant, even in film sell-through, despite lack of film product from most studios
Paid Film Content to PC – Market Share by Distributor
Movielink: 4.6%
Other: 5%
Continues to retain market share, but possibly will lose ground to new entrants like Wal-Mart
Other new market entrants such as Wal-Mart’s Online Video platform, AOL Movies, or News Corp’s Direct2Drive hope they will be able to capture market share from Apple.
Amazon Unbox: 8.4%
A strong legacy brand in online retail and TiVo connectivity to TV set has helped to grow Amazon’s market share
iTunes: 82%
The success of Apple’s marriage of the iPod device to the iTunes online distribution store has boosted the success of the platform
Distributors Used for Film to PC √ * * *
Competitive Commentary:
Most studios concerned about giving Apple too much leverage and thus have withheld film for sell-through
Steve Jobs’ presence on Disney board fosters partnership with iTunes; Paramount has taken a device-centric strategy
Market share source: Screen Digest research.