Despite vigorous efforts by Apple to enter the space, Hulu and Netflix 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.”
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% opted for iTunes, let alone to watch movies on demand from Amazon – only 7.3%. Meanwhile, YouTube worldwide – or at least 69.2% of users – favorite source of free web clips.
Facebook is the second. with a 27.1% share — and ahead of Netflix’s 24.5% and Hulu’s 22% share. “While Facebook does not host the videos uploaded by the user, it mostly aggregates YouTube clips users publish on their wall.”