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Wednesday, December 29, 2010

Netflix (NASDAQ:NFLX) Crushing Apple's (NASDAQ:AAPL) iTunes Rental Service

According to Gleacher & Co. analyst Brian Marshall, Netflix Inc.'s (NASDAQ:NFLX) service is about 10 times larger than Apple's (NASDAQ:AAPL) iTunes rental service at this time.

Apple reportedly sells about 475,000 rentals a day while Netflix sells over 5 million rentals daily.

As far as what Apple is renting, about 150,000 a day are movies, and 400,000 are TV episodes. Close to 90 percent sell for 99 cents each, says Marshall.

If Apple is able to grow their rental service close to the pace Netflix has, they would surpass $1 billion over a five-year period, bringing an additional $300,000 to the bottom line of the company.

Apple was trading at $325.60, up $0.13, or 0.04 percent, as of 12:20 PM EST. Netflix was trading at $181.87, down $1.80, or 0.98 percent.

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