ITunes' Premium Video Problem

Sorry, iTunes. Despite vigorous efforts by Apple to break into the space, Netflix and Hulu remain the leaders of premium online video entertainment, according to a survey of Web users by Citigroup's Mark Mahaney. "As ubiquitous a destination for digital music purchases, iTunes has not been able to hit the ground running in online video," huffs.

Netflix, it notes, is a subscription play and Hulu is an ad-supported model backed by major players. Polled users were asked to pick up to five Web sites they preferred for watching video online. Only 9.8% chose iTunes, while even fewer watch on-demand movies on Amazon -- just 7.3%. Meanwhile, YouTube remain everyone's -- or at least 69.2% of users -- favorite source of free web clips.

A surprise to 9to5, Facebook came in second -- with a 27.1% share -- and ahead of Netflix's 24.5% and Hulu's 22% share. "While Facebook does host user-uploaded videos, it mostly aggregates YouTube clips users publish on their wall," 9to5 notes.

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1 comment about "ITunes' Premium Video Problem".
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  1. Dan Ciccone from Tribal Fusion, June 17, 2011 at 3:37 p.m.

    iTunes is not a web-destination for entertainment. iTunes is a software application.

    Just sayin'