Apple’s Download Problem

When Apple rolled out its iTunes movie store in 2006, the online video landscape looked far different than it does today. Netflix was still a DVD-by-mail service in a fierce battle with Blockbuster. Amazon was years away from linking its nascent video product with a Prime membership.

Much has changed in digital video since then—except for Apple. A variety of companies have embraced subscription video on demand, and some, like Netflix and Amazon, are even creating their own shows.

But iTunes is holding onto the model of purchasing TV episodes or movies to rent or own—and by some accounts, losing market share rapidly.