Apple Pressuring TV Networks to Halve iTunes Episode Pricing?

[MacRumors]

Financial Times reports that Apple has been pressuring TV networks to lower their prices for iTunes content, hoping to pass along the savings to customers in order to spur sales. According to the report, Apple has been unhappy with the sales of television content and would like to drop the cost of TV episodes from the current $1.99 to $1 to introduce a new pricing dynamic.

The plan is seen as an integral part of the iPhone maker's strategy for the tablet computer, which it is expected to unveil tomorrow.

However, networks are resisting the move as they fear a repeat of the music industry's pact with Apple in 2003 to sell individual songs for 99 cents on iTunes. The price helped to simplify and boost downloads of digital music but dented album sales .

The report also claims that Apple has primarily been focusing on book and newspaper publishers ahead of the tablet's launch to get them on board, but the TV networks will soon see greater attention as Apple looks to use its tablet as leverage to convince networks to accept lower per-download fees in order to drive increased quantities of downloads.

Apple has also been rumored to be developing a monthly subscription service for a "best of television" package that would offer consumers a variety of content from the networks in what Apple hopes to position as a replacement for traditional cable TV subscriptions.

Article Link: Apple Pressuring TV Networks to Halve iTunes Episode Pricing?

 

[iPhysicist]

Apple becomes greedy!

 

[2499723]

Really? Who needs this? The tablet is the iPhone XL... that's what it sounds like more and more (but we'll see!)

 

[dmcdan0]

Really hoping Apple is successful with this. Some shows are listed as $3.49 in Canada's iTunes store. I don't watch a lot of tv, so I disconnected cable and invested in an Apple TV. Loving it so far, but it can get very very expensive if you're not careful.

 

[184550]

I know I would be much more likely to 'try' new shows that I don't have time to watch during the week and buy my favorite shows if they were at a $1 price point.

 

[slu]

This is exactly what needs to happen. I buy zero TV shows from iTunes because 1.99 is too much for something I watch once and delete. Make it .99 and I am going to buy more content.

 

[Lesser Evets]

TV episodes have to become cheaper.

They cost nothing on broadcast. I'd download episodes for a buck instead of watching live.

 

[overanalyzer]

Sounds like a good step. As others have said, $2 for something you probably want to watch once is pretty steep. I love the idea of a subscription service...anything as an alternative to Comcast would be wonderful.

 

[iOrlando]

they are rumored to be doing everything haha. i doubt anything related to tv/movies will be announced tomorrow. it would just get drowned out.

 

[PeckhamBog]

This is necessary for series box sets or they are simply uncompetitive against DVD box sets.

Compare the price of picking up the 5 seasons of The Wire off iTunes versus the DVDs from Amazon or Asda.

 

[Tilpots]

Great idea! It's only about three years late...

 

[kolax]

I won't buy TV episodes until they cost only $0.10.

$1 is still too expensive in my mind.

 

[motohooligan]

I've always thought the price for individual episodes was too high on iTunes. I mean, you end up paying more for the iTunes version than the whole series on DVD. Usually you can find dvds cheaper than the season pass option.

 

[dashiel]

$1 per show would definitely increase my purchasing habits. there are shows i watch, but don't consider them worth $1 so i'll watch them on hulu. $1 across the board all in hd when available. just a guesstimate, but i'd probably up my weekly purchases by at least double.

 

[martint84]

Am I the only one who's excited for a subscription TV service? Everyone loves to talk about how at&t rips us off, but what about the cable networks? Their tier pricing and packages specifically designed to rip us off as much as possible. I pay Comcast well over $100 a month for internet, hdtv, hbo, dvr, 3 boxes, etc. when all I really watch is 4 or 5 shows. I would much rather just pay for internet and get all of my content from Apple, on demand, without the hassle of dealing with rates that constantly change, techs that are never on time, and 100s of channels that I never watch.

 

[bamerican]

So, I can watch them free live (or with a DVR). I can watch them free streaming on hulu or ABC.com with a few ads. I can have them stream instantly on Netflix or get DVDs for the ones that don't. And they think $.99 is going to be worth it at per episode pricing?

Charging to television content at all is where the problem is.

 

[nickdelvecchio]

wonderful

If this happens I would completely get rid of cable. I would say getting a show for a buck is a heck of a lot cheaper adding it all up than watching cable now(at least for us anyway). I hope this works out.

 

[cptdavep]

Surely the key to downloads really taking of is to provide free ad-supported content and for apple to take a cut of the revenue? At the moment I'm not willing to pay for TV content cos I already have a big black box in my house which gives it to me for free, but would happily watch free shows with ads.

 

[allpar]

Maybe they can get TiVO integration...!

 

[talkingfuture]

Hope this happens, I'd love to buy shows off iTunes but at the moment it is so much cheaper to buy DVD's and rip them with handbrake.

 

[jbellanca]

I'd buy TV episodes all the time if they were $0.99 (in HD). Love that idea. Right now I just buy the Blu-Ray's or DVD's, but would totally switch if it was cheaper.

 

[bergmef]

Maybe one day they will update the apple tv hardware too.

 

[JangoFett124]

To get a show in HD, it is currently 2.99. That is really high, and I don't think it reflects well on a forward-looking company that you have to pay extra to get better quality video.

 

[miknos]

Like you guys said, you watch the episode and DELETE. In contrary, a song you hear it many times.

When you subscribe for cable, they still serve you loads of advertising, so you actually PAY TO WATCH ADS!

If you don't like the price or can't afford, pirate! ARRRGH! These days you (practically) don't see those one-song-artists anymore.

 

[seedster2]

So, I can watch them free live (or with a DVR). I can watch them free streaming on hulu or ABC.com with a few ads. I can have them stream instantly on Netflix or get DVDs for the ones that don't. And they think $.99 is going to be worth it at per episode pricing?

Exactly. There are way to many streaming options to consider buying video media on iTunes. If you think a show has rewatchability then I'd sooner buy it on BD. This certainly wont kill cable because most people still subscribe for the sports, on demand and as ISPs. The same model that works for music certainly wont work for TV/movies