When it comes to selling digital movies online, Apple are reigning supreme according to a new report. Apple managed to fend off stiff competition from rivals and take 64.5% of the market for electronic downloads in 2010.

The report by iSuppli showed that the competition is getting fiercer from Sony, Microsoft, Sony and Wal-Mart. However when it comes to electronic sell through video on demand the iTunes store reigns supreme.

It was not all good news for Apple though, as the movie sales figure dropped from 2009. In that year the iTunes market share was 74.4% so saw a fall of 9%. But the loss was down to competition as the download market itself, saw a 60% growth.

Although the future will be a lot harder fought with increased market penetration by Microsoft and their Zune Video, Sony’s PlayStation Store, Amazon and Wal-Mart. They will be helped thanks to the massive success of their iPad tablet and the revamped second generation Apple TV.

It brings back into question the future of the DVD disc, especially as the sales reported by Hollywood’s studios over the holiday were pretty grim.

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