Report: Netflix to Dominate Movie Downloads15 Sep, 2006 By: Erik Gruenwedel
Apple's decision to offer movie downloads on iTunes reportedly won't negatively impact online movie rental pioneer Netflix.
The report from research firm Cowen and Co. cited iTunes' business of selling movies versus Netflix renting them as the primary reason Apple's movie downloads would only affect iPod users, according to a story on Forbes.com.
Instead, Cowen and Co. stated that Netflix, with about 5 million subscribers, will become the leader in movie downloads once the business model is established.
“We continue to believe that Netflix will be the market leader in the digital movie subscription space once the business model becomes viable,” wrote analyst Jim Friedland.