Microsoft’s Zune Video service gained over 50% more market share in 2010 compared to 2009.
The software giant’s Zune video platform now accounts for 17.9% of the market compared to 11.6% in 2009. Microsoft has successfully cemented its U.S. number two market rank during 2010. Apple’s iTunes still dominates the market with 64.5% market share but due to increased competition from Microsoft, Sony and others, Apple’s share slipped by 13%. U.S. movie EST/iVOD consumer spending on iTunes movies was 74.4% in 2009, meaning Apple’s share has slipped by nearly 10 percentage points.
The figures come courtesy of the latest quarterly analysis from IHS Screen Digest. “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,” said Arash Amel, research director, digital media, for IHS. Despite Apple’s competition the company still dominates U.S. EST/iVOD movie consumer spending. The company also maintained its control of three quarters of the U.S. EST business in 2010.
Microsoft’s sharp increase can be attributed to the successful launch of the Zune Video services on the Xbox 360. Microsoft launched its Zune Marketplace on the Xbox 360 in November 2009. The service features content from CBS, Fox, NBC, Viacom, PBS and others. Following the success in the U.S. Microsoft expanded its offering in October to additional countries in North America, Europe, Asia and Australia. IHS Screen Digest notes that Microsoft’s Kinect launch and its Xbox 360 sales success have helped it gain on Apple. “This resulted in a bumper fourth quarter for movie revenue on the Zune Video platform.”