Cord Cutter's Diary

Dammmn: “Apple saw its share fall to 32 percent from about 61 percent.” In one year! The research firm cited in this story essentially argues that the subscription model for digital video (Netflix, Hulu Plus, Amazon Prime) is killing the a la carte model (iTunes, Vudu, Amazon Instant Video). Two questions this raises for me:

• Will the same trend hold true for music in the U.S.? The iTunes a la carte model enjoys a 70% market share, but Spotify’s subscription model is still very new here.
• Will Apple relent and introduce a subscription model for media in the iTunes Store? It’s long been discussed, and Apple could theoretically offer an all-you-can-eat plan for movies and music. Apple has been reluctant to go this direction, probably because of the licensing fees, but I bet it happens soon.

And I guess it’s relevant that since I cut the cord, I’ve watched plenty of video on Netflix but haven’t purchased anything from iTunes. Things might be different if I had an Apple TV — or the next generation of Apple TV.

Update: Peter Kafka throws cold water on this report…

@benfritz @zseward ok talked to the ihs folks, confirmed what i thot. 10,000 % growth has to do w/reporting, accounting, not actual use.

— Peter Kafka (@pkafka) June 4, 2012