Forty two online movie stores went out of business last year, according to research firm Screen Digest. Online movie stores that have disappeared over the past few years include Movielink, Lycos, Guba, AOL and BitTorrent. So much for that online movie pot of gold waiting at the end of the rainbow. Here in the UK, iTunes commands a 60% share of the digital movie market. Microsoft, which has been selling movies through Xbox Live since December 2007, is in second place. Apple has an even larger 85% share of the download-to-own TV show market. Xbox is not selling TV through its games console over here yet.
The consultancy estimates that the UK internet-delivered movie market was worth almost £16 million ($21 million) last year — less than 1% of the DVD market. And 63% of that came from download-to-own rather than video streaming. Screen Digest presented its findings this week to industry lobbyist Bsac. The analyst recently slashed its global digital film revenue estimate by one third to $943 million.
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