Microsoft's movie service grew 6% in 2010, thanks to Xbox 360

2011-02-07_Video

Microsoft's Internet movie service grew more than 6% in 2010, thanks to the successful Zune marketplace on the Xbox 360. Since the launch of the Zune Marketplace on the Xbox 360 in November 2009, the store has been a huge hit and well received by users.

The online service allows users to stream videos to their Xbox 360 in both standard and high definition. The Zune Marketplace offers a large catalog of movies and TV shows on-demand, with the ability to either rent or purchase videos.

The success of the store has increased Microsoft's Internet video service by 6.3% since 2009, according to isuppli.com. However, the Zune Marketplace is still second to Apple's iTunes, which still holds 64.5% of the market. Apple lost 9.9% of the market share in the last year, with services like Microsoft, Sony, Amazon, Netflix Wal-mart, and many others expanding their video libraries.

In 2010, both Sony and Microsoft managed to expand their market share by utilizing their video consoles to increase their market share. Sony and Microsoft will continue to pose a threat to Apple in 2011, by offering larger catalogs of movies and TV streamed to their consoles.

Report a problem with article
Previous Story

Bing-powered search US market share up 6%; Google down

Next Story

Google Translate for the iPhone; Voice to text translations

12 Comments

Commenting is disabled on this article.

Shouldn't it read, "Microsoft's movie service marketshare rose 6% in 2010, thanks to Xbox 360." The way it's stated makes it sound like the service itself only grew by 6%, when it was really more like 54%.

Awesome. Hope they continue to expand and improve their Marketplace offerings. I'd love to see an all-you-can-eat pass for TV/Movie content, but considering how Netflix fills that void, and Netflix and Microsoft are on the same BoD, then it probably won't be happening anytime soon.

I also hope the rental and buying prices get on parity with what a real physical format would cost. Renting "Dinner for Schmucks" is about $6 when you can rent it at Redbox for a $1. Though you do get 14 days to watch it, once you play it, you only have like 24 hours to finish it before it's no longer viewable. If they could just work out some better deals, then I'd be more inclined to actually buy stuff from there. Not sure, but I think even iTunes has cheaper rentals.

Stokkolm said,
Redbox has the same movies for {0}.99 and we have to pay like $5.50 in MS points!

Yeah, I definitely dislike the MS Points. Supposedly it was suppose to 'equalize' the price across international boundaries, but I don't really see it.

I doubt MS is price gouging on purpose, since they still have a ways to go, but because the studios demand that much. If only those studios realized there are many people willing to pay legally, but not that much given it's a digital copy, probably laden with DRM restrictions, and doesn't 'usually' offer the bonus featuers the DVD has.

Stokkolm said,
If they lowered the darn price it would be 600% instead of just 6%!
i totally agree with you! its too expensive. and we are trapped in this silly MS points ecosystem... make it stop! i want to buy my music and movies with $$$$

jasonon said,
i totally agree with you! its too expensive. and we are trapped in this silly MS points ecosystem... make it stop! i want to buy my music and movies with $$

I don't know about movies, but you can buy music using money now.

Zune itself has been a hit. Especially the software. They need to remove WMP and Media Center and just transform it all under the Zune brand, integrate it even further with the 360/PC/WP7 and they'll be golden slowly overtake iTunes.

NeoDecay said,
Zune itself has been a hit. Especially the software. They need to remove WMP and Media Center and just transform it all under the Zune brand, integrate it even further with the 360/PC/WP7 and they'll be golden slowly overtake iTunes.
I second that.

If Microsoft can further streamline all their services such as Windows, Media Center, Xbox, WP7, Zune, Live, etc into the cloud. Man I can see that Microsoft's lifestyle that I have been hearing about since Bill Gates talked about it back in 2001.