Gleacher Says Netflix (NFLX) 10 Times the Size of Apple's (AAPL) iTunes Rental Service
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Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 20 | New: 11
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Gleacher & Co. analysts Brain Marshall said Wednesday that he believes that Apple Inc.'s (NASDAQ: AAPL) iTunes rental service is 10 percent the size of Netflix Inc. (NASDAQ: NFLX).
Marshall said Apple sells roughly 475,000 rentals per day through iTunes, while Netflix tops 5 million daily rentals.
Apple said last week that it has sold 1 million units of its streaming-centric Apple TV and that users are renting and purchasing over 400,000 TV episodes and more than 150,000 movies each day.
Marshall said that about 90 percent of iTunes TV episode sales are rentals at 99 cents each.
Gleacher said that if Apple can grow its rental business at the same rate as Netflix, it could exceed $1 billion within 5 years, which could add $300 million to the company's bottom line.
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Marshall said Apple sells roughly 475,000 rentals per day through iTunes, while Netflix tops 5 million daily rentals.
Apple said last week that it has sold 1 million units of its streaming-centric Apple TV and that users are renting and purchasing over 400,000 TV episodes and more than 150,000 movies each day.
Marshall said that about 90 percent of iTunes TV episode sales are rentals at 99 cents each.
Gleacher said that if Apple can grow its rental business at the same rate as Netflix, it could exceed $1 billion within 5 years, which could add $300 million to the company's bottom line.
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