iTunes Vs. Netflix – Online Rentals Compared

For more than a decade, Netflix has been seen as the leader in movie rentals. More recently, the company has started focusing on online rentals so much so that it is now believed that internet streaming via Netflix alone contributes close to 20% of bandwidth in the United States. Netflix recently launched in Canada and is learned to be ramping up for an international roll-out.

So how does all of this compare with Apple’s iTunes service? According to Gleacher & Company analyst Brian Marshall, it may be a tad unfair on Netflix to even get compared with iTunes. And that’s because the volume of purchases over Netflix is extremely large compared to those over iTunes.

Marshall points out that the average number of rentals per day over iTunes could be in the range of 475,000. On the other hand, Netflix is known to handle as much as 5 million rentals on a daily basis. Netflix appears superior in value terms as well. Marshall notes that over 90% of TV episode rentals on iTunes are priced $0.99 widening the gap between the two services even further.