Microsoft Zune eating into Apple’s market share

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According to IHS Screen Digest, Microsoft grew its share of the online movie market by more that 50% from 11.6% to 17.9% between 2009 and 2010, despite Apple’s release of video centric devices such as Apple TV and the iPad.

U.S. Online Video Share*
(by % of consumer spending)

1 Apple 74.4 64.5
2 Microsoft 11.6 17.9
3 Sony 5.7 7.2
  Others 8.3 10.4

While iTunes online store still accounted for more than two-thirds of U.S. consumers’ online movie spending, at 64.5 percent in 2010, their share is  down from 2009’s 74.4 percent.

"Apple faced serious competition from Microsoft’s Zune Video and Sony’s PlayStation Store, as well as from Amazon and — most significantly — Walmart," said Arash Amel, IHS digital media research director

The success of Microsoft’s Zune service is largely due to the Xbox 360, increasingly more a media entertainment device rather than just a game machine, and of course boosted by the run-away sucess of the Kinect accessory.

With Apple increasingly losing smartphone market share to other platforms, and the iPod market itself declining, it is inevitable that Apple’s media dominance will erode over the coming months, and with Microsoft now having a strong offering both in the living room and now on smartphones Microsoft should benefit from some of this market share loss.


Thanks Mark for the tip.

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