TV Networks Continuing to Resist Apple's Effort to Slash iTunes Pricing
The New York Times reports that television networks are continuing to resist Apple's push to lower episode pricing for their shows to $0.99, down from the current $1.99 price point for standard definition content. The networks reportedly continue to be skeptical of the value of such price cuts, despite claims that some of them have agreed to participate in a trial of the lower pricing to coincide with the launch of Apple's iPad.
Television production is expensive, and the networks are wary of selling shows for less. They are equally wary of harming their far more lucrative deals with affiliates and cable distributors, who may feel threatened by online storefronts like Apple's and those operated by Amazon, Microsoft and Sony.
But the networks do not want to ignore the 125 million customers with credit cards who have iTunes accounts, either. "We're willing to try anything, but the key word is 'try,' " said a TV network executive who requested anonymity because his company had declined to comment publicly on talks with Apple.
Apple has also been said to be pushing for a television subscription service that would allow users to replace their cable television service with a package of popular TV shows distributed through iTunes for $30 per month. While networks have also been reluctant to consider such an offering, sources indicate that the possibility remains under discussion.
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26 months ago
They won't replace cable until they can get live sports. Selling the Superbowl post-game for $3 was great, but won't fly in 99% of households. I would've happily paid $3 for a live stream onto my AppleTV, though.
26 months ago
i really think its a matter of finding the sweet spot on pricing, If shows were cheap enough or subscription based, i would have alot more willingness to buy all my shows on itunes, or honestly i wouldnt mind an "ad version" to be free for download, i can tolerate adds for cheap to free download of my shows
26 months ago
I hope they see sense and go for this. At the moment my main reason for not buying from iTunes is that it is simply cheaper to buy DVD's and handbrake them.
26 months ago
1$ for every episodes... I'll start buying (or event renting) as long as it's the HD version
26 months ago
Anytime I search for a show that I like on iTunes it never seems to be there, like Dexter or UFC. Because I'm in the UK and I like to stay up-to-date it's not a far stretch to imagine I get my entertainment from less legitimate sources. I'd happily pay a small fee something I like form iTunes. But, if you put the price up too high, for what really is just a 50minute show, I'll just get it for free as usual.
It's the greed of these big networks that's holding them back from making peace with a large segment of savvy entertainment consumers. They can make Big profits by selling shows at 99cents over iTunes.
It's the greed of these big networks that's holding them back from making peace with a large segment of savvy entertainment consumers. They can make Big profits by selling shows at 99cents over iTunes.
26 months ago
Dropped TimeWarner almost two years ago. Used DirecTV for a year but, when they decided to raise my $42/month to $64/month, I shipped back their box and put an antenna on my roof. I now get HDTV and, admittedly, only about 6 channels. However, I really don't miss it (and use my AppleTV to get some free news and commentary shows from the iTunes store).
$30/month for a "pre-packaged set" of TV shows doesn't sound very appealing to me. 90% of the channels I had with TimeWarner and DirecTV were worthless.
Frankly, I'd rather see the networks offer free, advertising-sponsored TV shows (something like what Hulu does) but give them to me on iTunes so I can watch on my TV, not my computer screen. Seems to me they've tried everything else -but- this. I know there's the issue of how to insert local advertising in the appropriate places but, given that ones IP address reveals ones location, this shouldn't really be such a difficult thing. Frankly, I don't mind the commercials if that pays for my TV.
$30/month for a "pre-packaged set" of TV shows doesn't sound very appealing to me. 90% of the channels I had with TimeWarner and DirecTV were worthless.
Frankly, I'd rather see the networks offer free, advertising-sponsored TV shows (something like what Hulu does) but give them to me on iTunes so I can watch on my TV, not my computer screen. Seems to me they've tried everything else -but- this. I know there's the issue of how to insert local advertising in the appropriate places but, given that ones IP address reveals ones location, this shouldn't really be such a difficult thing. Frankly, I don't mind the commercials if that pays for my TV.
26 months ago
I am more than willing to pay $0.99 a show for kids programming. When the price drops I will buy 25 shows that day.
26 months ago
Hopefully the networks realize that people will pay for programming if that programming is worth it. The market works ... as their history shows with the current business model. If a show works, then it stays on.
The "pay for what you want to watch" model is a good thing compared to the current model of paying for everything even if you don't watch it.
The "pay for what you want to watch" model is a good thing compared to the current model of paying for everything even if you don't watch it.
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