Study: Amazon Is Nibbling Netflix's Lunch
When Amazon launched its Prime instant streaming video service, the company was expected to encroach on Netflix's territory.
Third, iTunes is the only service that allows consumers to purchase content. While Netflix is a place for temporary rentals (most movies come and go), iTunes users can permanently obtain film and TV show downloads. This indicates that consumers still value ownership, whether it's in the form of a DVD or a digital download.
Fourth, iTunes offers downloadable content that users cannot get anywhere else. For example, only the four most recent episodes of select CBS (NYSE:CBS) dramas and comedies are available to watch on Comcast (NASDAQ:CMCSA) On Demand. But iTunes sells all of them, allowing users to catch up for a relatively small fee. They can also choose to purchase individual episodes, a benefit not available on DVD.
Editor's Note: This content was originally published on Benzinga.com by Louis Bedigian.
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