IHS Screen digest has come out with their yearly report on online movie sell-though and Internet video-on-demand (iVOD) service and while Apple is stil at the top (by a lot, we might add) their dominance in the market appears to be waning.

In 2010, Apple controlled 64.5 percent of the online VOD market, but that's down from 2009's 74.4 percent--that loss of 10 percent seems to be quite a large number. Though to be put into perspective, the market itself grew by over 60%, meaning Apple still took away a nice chunk of change.

Reason for the decline in market share though? According to Arash Amel, IHS digital media research director:

Apple faced serious competition from Microsoft's Zune Video and Sony's PlayStation Store, as well as from Amazon and -- most significantly -- Walmart.

More importantly to our concerns, Zune Video platform increased to 17.9 percent from 2009's 11.6 percent--in large part due to the success of the Xbox 360/Kinect combo. That's actually an impressive gain if might say and shows that Microsoft does seem to have a plan here for getting into consumer video content. Combined with Windows Phone 7 (assuming it gains significant market share), we think Zune has a very bright future--so much so we wonder what Android could offer that is remotely analogous?

Although the conclusion by IHS is that Walmat (and Amazon) may be the biggest competitors against Apple, due to their sheer market size and brand-advantage. That may be true, but we don't see any Walmart video service on our smartphones and so far nothing from Amazon either--and the mobile market is an important one, for sure.

Soruce: IHS ScreenDigest; via: Twice; Thanks, Mark, for the tip!