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January 24, 2012

The Rise of NetFlix in US Home Entertainment Industry

Despite all the hype around Netflix streaming, and Apple's iTunes movie store, the fact of the matter is that the physical disc is still the king of home entertainment, Dan Frommer at SplatF reports.
In the  chart above, digital streaming/sales only accounted for 19% of the home entertainment market in the third quarter. The rest of sales comes from DVD/Blu-ray discs.As Frommer points out, this means there's still plenty of room for growth for Netflix, Apple, Microsoft, Facebook, and others to attack the market.

Goldman surveyed 2,000 US consumers asking them, "Which website do you prefer to use for watching video online?" Amazingly, more people said Netflix than YouTube.
On some level it makes sense since Netflix is all about long form video, which could make it preferable. But on the other hand, Netflix has just over 20 million subscribers. YouTube had 144 million unique visitors in the US in February according to comScore.

The number-one game console for Netflix users is actually Nintendo's  with 25% of Netflix streaming users say they get the service through their Wii, compared with 13% on the PS3 and 12% on Xbox Live.Another 20% connect their computer to their TV to watch Netflix.

According to the Data Hulu users are much more attached to their computers -- 89% of them watch Hulu on their computer monitor, compared with only 42% of Netflix streaming viewers.The data comes from more than 12,000 online interviews conducted in March.