AppleInsider is reporting on a estimates made by analyst Brian Marshall from Gleacher & Company, who estimates that the iTunes rental service is only one-tenth the size of Netflix. Specifically, Marshals points out that iTunes sells somewhere around 475,000 rentals a day, while Netflix sells around 5.1 million rentals a day.
Marshall goes on to speculate that iTunes rental service is bigger than their the number of people purchasing movies or TV shows. So, there’s that. Additionally, Marshall estimates that Apple makes around $60 million in revenue for rentals per quarter, and $50 million per quarter in sales. Comparatively, Netflix reported some $550 million in Revenue in the quarter since September.
I expect these numbers to change. Not dramatically, but I do expect them to trend upwards, for both companies, if only slightly. Since Apple announced that the new Apple TV has already sold 1 million units since it was introduced last September. Users can both download movie rentals from iTunes and from Netflix from the new Apple TV.
Another thing this report neglects to mention is the fact that, while Apple does make a considerable amount of money from selling content, they make far more from selling the hardware. So, they don’t care if iTunes or Netflix does better, they just want to move Apple TVs.
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