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Netflix Dominates Digital Downloads

March 16, 2011 | Author: Ibex Marketing

Market-tracking firm NPD has issued a press release on digital video based on its VideoWatch Digital service. One of the interesting results is that digital video — either downloaded or streamed — now accounts for one quarter of all video watched at home. That’s a pretty stunning share of the total.

Even more stunning are the numbers for Netflix. According to NPD, Netflix streaming is responsible for more than 60% of the total digital video watched in U.S. households. I expected that they would have a lead, but I never imagined that it was this great. A 60% market share is beyond dominant. This is the sort of share that Corning has for LCD panel glass, or Merck has for liquid crystal material used in LCDs. When you have this much market share, your nearest competitor is not likely to have even half the business that you have. And if the field is crowded, the gap between Number One and Trying Harder can be enormous.

According to NPD, the second place is held by Comcast, followed by a tie for third between DirecTV, TimeWarner Cable, and Apple. That doesn’t sound too bad until you find out that Comcast’s share is just 8%, and the next three have 4% apiece. Combined, these four of the top five only have one-third the total business that Netflix has.

What’s a word for “more than dominant?”