Just a reality check on the video download/rental business: There really isn’t one yet. At least not compared to good old-fashioned DVD sales and rentals.
NPD Group: $8 out of every $10 spent by Americans on movies and TV is still spent on DVDs. And what of digital downloads/rentals to computers, iPods, etc? They still represent just 0.5% of consumer spending.
The breakdown, according to NPD Group’s “Entertainment Trends In America:”
DVD movie purchases: 41%
DVD movie/TV rentals: 29%
Movie tickets: 18%
DVD TV purchases: 11%
Sales/rentals of TV/movies on the Web: 0.5%
What does it mean? Well, the battle to control the digital living room so hotly contested by Apple (AAPL), Netflix (NFLX), Amazon (AMZN), TiVo (TIVO), Microsoft (MSFT), and everyone else, is a scrap for pennies at this point. Also, it’s the main reason Netflix expects to be shipping DVDs by mail for another 10 years.
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