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Not content to be a major player in the computer and wireless industries, Apple also dominates the online movie sell-through business. According to IHS Screen Digest, Apple’s iTunes store was the web’s top VOD and electronic sell-through player in 2010.

Arash Amel, research director of digital media for IHS, says that despite having its slice of total consumer spending drop nearly 10% from 2009, iTunes remains the dominant force in the digital movie business.
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Said Amel:

“The iTunes online store showed remarkable competitive resilience last year in the U.S. EST/iVOD movie business, staving off a growing field of tough challengers while keeping pace with a dramatic expansion for the overall market,”

Apple faces steep competition in the VOD marketplace, including Amazon, Microsoft’s Zune store and Sony’s PlayStation Store. According to Amel, it’s Walmart that should be giving Apple executives the most cause for concern:

“The future of the online movie business may come down to a competitive battle between Apple and Walmart . . . Although Walmart is not on the charts yet, the company soon will become a major player if its current momentum continues. The company already represents a critical source of revenue for the major Hollywood studios because of its massive sales of Blu-ray Disc and DVD movies —and now is expanding this business into the online realm.
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Will Walmart be the one to threaten Apple’s crown this year, Insiders? How long can iTunes stay atop the ever-growing hill of online video-on-demand options?

(via Home Media Magazine)

4 Responses to “Report: iTunes Top Online VOD Service in 2010”

  1. Member [Join Now]
    s142424

    The question is: has Wal-Mart waited to long to get into this fight? A few years ago Wal-Mart finally decided they were going to get into DVDs by mail a la Netflix – that failed. They also tried to square off against Apple in music downloads and they waited to long to get into that arena too. Just because Walmart is going to try something doesn’t mean everyone else should just give up and go home.

  2. Visitor [Join Now]
    Doloris Hardage [visitor]

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