Apple Still Dominates Movie Downloads

Apple's iTunes service continues to fend off competition from Microsoft, Wal-Mart and Sony to lead the online movie downloads market, a new report has revealed.

According to a report released by market research company iSuppli, of all the money spent on purchasing and downloading movies via electronic sell through (EIS) and

Internet video on demand (IVOD) in 2010, 64.5 per cent was on Apple's iTunes platform.

Despite Apple's impressive market lead over its competitors, the company still saw a 9 per cent drop in the amount of money consumers spent buying movies on iTunes. In 2009, Apple's iTunes held a market share of 74.4 per cent in the online movie downloads market.

Arash Amel, research director, digital media, for IHS, said in a statement: “Apple faced serious competition from Microsoft's Zune Video and Sony Corp.'s PlayStation Store, as well as from Amazon and—most significantly—Wal-Mart. However, iTunes managed to grow because of the introductions of the iPad and the second-generation Apple TV.”