Apple Seeking Price Cuts on iTunes Television Episodes?

[tribulation]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

 

[jackc]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

No, I think it's mostly people who just like the show who see it as no different than buying a movie. I normally don't buy them, but I picked up a few used ones that were cheap enough.

 

[pubius]

yup, i'd start buying them. check plus.

 

[Squonk]

This would tip the scales for me to buy TV episodes and it would not affect my decision to purchase a season on DVD as I'd still want the concise collection with the extras. Demand will go through the roof with price change. Not to mention, that with the improved iPod Classic, the new iPod touch and iPhones, now has a variety of devices ready to consume all of this content. BRING IT!

 

[bdj21ya]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

There are some shows which are worth having forever (Heroes, The Office, among others). Things you'd want to be able to share with your children someday.

 

[Zadillo]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

I'll buy TV shows on DVD if it's something I want to watch again and again, and at my convenience. So I've bought shows like Babylon 5, NewsRadio, etc. that I can enjoy watching multiple times.

Usually I'll wait for a TV show to go down in price (i.e. I recently snagged all 5 seasons of Babylon 5 at $19.99 a piece when Best Buy had it on sale) or be on sale though.

I would only buy a TV show on DVD that I do want to be able to watch repeatedly though. With cable and TiVo, it's good for watching whatever might be on the air at any time, and for maybe keeping a season of a sh ow y ou really like, but given limited storage, if it's something you know you want to keep, it makes sense to buy.

-Zadillo

 

[Zadillo]

There are some shows which are worth having forever (Heroes, The Office, among others). Things you'd want to be able to share with your children someday.

Of course, it's very unlikely that someone would still be using a DVD to share a show with their kid 20 years from now.

 

[cybertron3]

If I get the episodes for 99¢ a piece, the $100 iPhone rebate apple owes me is all going to that. I think that is the price point that would push me to getting all my shows online.

 

[whatever]

Variety reports that Apple has been looking into cutting prices on TV episodes from the current $1.99/episode down to $.99/episode.


Apple argues that the studios would end up making more money with an increase in volume of sales, but the studios haven't been convinced. One concern raised is that potential impact these prices would have on DVD sales which have traditionally been an important source of revenue for the studios.


According to insiders, while skeptical of the plan, the studios have not rejected it outright, and acknowledge that "library titles" of older content may make more sense at the lower price. Historically, however, Apple has been insistent on consistent pricing across the board.

The author of the article speculates that Apple and NBC's recent split may have been in part related to some of these issues.

Article Link

DVD's? They still make those things?

I for one haven't bought a DVD since last year (and I used to buy entire seasons of shows and a movie a week). But once I got a DVR I never missed an episode of my favorite show. And then I got my HD TV and now I only watch HD Movies on cable (and again I DVR the ones I want) so that saves me from the BluRay/HD-DVD dilemma.

Now if there was only an easy way to get my content off of my DVR an onto my Apple TV....

 

[compuguy1088]

But the bigger problem is, it's clear that the number of people willing to pay $2 an episode is pretty small.

Again, what is better? A small number of people willing to pay $2 an episode, or a m uch larger number willing to pay $1 an episode?

CD's aren't quite the same thing - the big thing is, CD's as a format are dying. They don't offer any tangible benefit to downloads (which is why the record industry is still trying to do these gimmicky CD's with video content, wallpapers, etc. on them).

DVD's of TV shows on the other hand are a booming market.

Moreover, DVD's offer bonus features, etc. than TV purchasers don't get.

Finally, downloadable TV episodes are different because part of the whole point is being able to download them as soon as the episodes air. The motivation to download an episode is different, and I don't think people see the downloadable TV content as being as "permanent" as they would TV shows.

Music (downloads vs. CD's) doesn't work this way.

You can't really compare the pricing issues of music and TV shows, as a result of this.

-Zadillo

There is still one advantage of buying CD's, and that is the fidelity. The downloads that are on the majority of the iTunes music store are only 128 kilobytes/per second encoded, while a cd is at a vastly higher quality. This may not be important for most music, but the cd's extra quality really benefits classical music, though I do not know about other genres.

 

[Zadillo]

There is still one advantage of buying CD's, and that is the fidelity. The downloads that are on the majority of the iTunes music store are only 128 kilobytes/per second encoded, while a cd is at a vastly higher quality. This may not be important for most music, but the cd's extra quality really benefits classical music, though I do not know about other genres.

Oh yeah, certainly, I didn't mean to make it sound like CD's don't offer any benefit either.

It's just that for many buyers, the benefits aren't quite as tangible, perhaps - or at least, not so much that they don't mind just buying the music online.

-Zadillo

 

[OhEsTen]

And at that point DVD sales are cannibalized. Look at the looky-loos who aren't sure what to do. Before, the cost of the DVD was so close, that it was worth it to just by the stupid box. Drop to 99, and a lot of casual users will just buy the show off of iTunes. DVD sales drop, and profits are lost...

I see. But my point was that the "lookie-Loo's" are probably not going to buy the DVD's anyway. It will mostly be the serious fans of a show. So dropping the price on iTunes would seem to attract those who would normally not do anything - be it on iTunes or on DVD...

 

[OhEsTen]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

No. I have cable (along with a crappy DVR they supply), and never looked up or bothered with how to extract the video off of it. The only TV show I ever bought was Arrested Development. All three seasons. Best DVD purchase ever.

And no commercials is nice too...

 

[Virgil-TB2]

If you're really into a show - people will want the DVD for exactly that point - the extras that you don't get through iTunes. Why do most of the studios seem so hesitant with stuff like this? I don't see cheaper iTunes shows cannibalizing DVD sales...

I totally agree with this comment. I am a DVD "collector" and have over a thousand at least, but I rarely buy TV show sets because of the really low value proposition they represent.

That being said though, they really are two different markets. If you want to "collect" a show, then you will pay a hundred bucks for the fancy boxed set of DVD's. If you just want to download some Brady Bunch on impulse because you are going on a long bus trip, then 99 cents seems much more palatable.

Downloads should be treated as what they are, low quality "throw-away" purchases, (almost like rentals) and not as if you are "buying the show" at all.

 

[BKKbill]

So what I was pointing out is that I don't understand how you're saying it's .04 or even .11. The basic premise is that exchange rates are an unreliable measure. So if you're not using exchange rates, and not using the proposed iTunes show valuation, then how can you say anything in terms of U.S. dollars?

OK you got me there it's not .11 but 3.77 Thai Baht. The exchange rate is what country's use to convert money to local currency's it may be an unreliable measure but it is what it is. I'm talking about annual income which is what the original poster was taking about. If you read my last post and the one from another poster about 3 or 4 before mine hopefully you will understand. I don't think I can explain it any clearer. Oh and you are right about us not getting iTunes here we are much to foreign for that. Although Apple will let me spend 58,990 Thai Baht for a 20", 2.4GHz model iMac. Oh sorry that would be 1720.50 USD with tax and exchange for you. Coming as soon as Leopard is out. Have a good day.

 

[diamond.g]

Just out of curiosity, what and why do some of you buy a TV show season on DVD? Is it just people without access to normal cable? If you have cable and a tivo I personally just can't image any reason why anyone would want to spend that kind of money for a TV show series to keep forever.

So is it mostly just people without cable subscriptions?

I have cable, but I also buy the season of shows that I like alot on DVD (well now HD DVD).

And then I got my HD TV and now I only watch HD Movies on cable (and again I DVR the ones I want) so that saves me from the BluRay/HD-DVD dilemma.

OTA or even "Cable" HD wont be showing in 1080p for quite a while. HD DVD and BluRay have a leg up on resolution and sound. Some of you would really enjoy Dolby TrueHD. For those that like extras the Hi Def formats also offer more and better interactivity.

 

[thejadedmonkey]

This might actually get me to spend money on iTMS now!

 

[Unspeaked]

Again, what is better? A small number of people willing to pay $2 an episode, or a m uch larger number willing to pay $1 an episode?

I think the networks would rather have a small number of people willing to pay $2 an episode and a large number of people willing to pay $25-40 a box set for the series on DVD, which is the current setup.

CD's aren't quite the same thing - the big thing is, CD's as a format are dying. They don't offer any tangible benefit to downloads (which is why the record industry is still trying to do these gimmicky CD's with video content, wallpapers, etc. on them).

I don't know, I doubt they're anymore a dying format than DVDs.

As someone else brought up, there's the fidelity issue.

Also, the price is very much in line, or even cheaper, than downloads.

And as you yourself bring up, there's been an effort to bring some value-added material to CDs, but it goes way beyond videos and wallpaper. Most new releases I see come with entire bonus discs of material, or a bonus DVD, of very cool packaging (we're on a packaging kick unlike anything the record industry has seen since the first days of CDs, with everything from stickers to t-shirts to action figures being bundled with CDs!).

And, of course, there's the fact that you've got a ready-made backup for the material you just bought...

 

[cliffjumper68]

I think they might actually find people buying the iTunes episodes during the season and the DVD later if they price it right. For now, there are shows I won't buy from iTunes because I intend to get the DVDs when they are released, but that forces me to wait much longer than I'd like to.

It would move us one step closer to replacing traditional TV with demand based content. Gonna happen just a matter of when...

 

[whatever]

I have cable, but I also buy the season of shows that I like alot on DVD (well now HD DVD).

OTA or even "Cable" HD wont be showing in 1080p for quite a while. HD DVD and BluRay have a leg up on resolution and sound. Some of you would really enjoy Dolby TrueHD. For those that like extras the Hi Def formats also offer more and better interactivity.

I guess what I'm trying to say is that both HD DVD and BluRay formats are destined for extinction. Unlike both DVD and CD there replacement is already in use (OnDemand, DVR's and download options).

Today, there is no reason (besides lack of content) Apple couldn't sell 1080p content in the iTunes store. Yes, I know that QuickTime doesn't support Dolby Digital, but we all know that's just a software fix!.

I have a large DVD collection (and a even larger CD collection) and basically they're both collecting dust.

As far as the DVD extras go, how many people really watch them? And they could easily be offered as downloads too.

 

[bugabuga]

The only non-NBC show I've ever bought it Monk... I don't see myself buying many more episodes.

Come back NBC, I'll be more than happy to pay .99 per episode of Scrubs and the Office. Otherwise, I'll still be watching them...

So when Apple said "NBC wants us to double the price!" they actually meant they'd still have to sell those at $1.99 instead of 99c ?
Now it all suddenly a bit more clear (as well as willingness of NBC to give 30% season discount)

 

[mrgreen4242]

Well, one obvious solution to this is offering two versions of TV shows (and movies, for that matter). One that is DVD resolution (or at least the res they are now) for the ATV and output out to TV from an iPod, and the other at iPod (or preferably iPod Touch/iPhone) resolution.

Keep charging $2 for the DVD quality, and drop the iPod/iPhone quality version to $1. They can drop the bittrate on the iPod ones a ton as a result and save cost on bandwidth, and also make them more of an impulse buy... I've only downloaded one show from iTMS and it took forever to get it as it was nearly 700mb and the iTMS doesn't come close to maxing out my internet connection (I am able to get as high a full MB - 1024 kilo BYTES - on my cable modem). Took hours, which was really disappointing and is the #2 (behind price) reason I don't use the iTMS for TV shoes/movies.

They'd need to go high res and widescreen as well, at both the $2 and $1 levels - 720x480 and 480x320, respectively. At these prices it would encourage sales and 'protect' DVD set revenue at the same time. People would get more for their money at the current price (widescreen, higher res) which would appease some of the people who feel $2 is too much for what you get, and also give a good option for people who just want to watch the show on their iPod/iPhone.

 

[Floris]

I am happy to see prices going down, if that will happen. But to be honest, the price is just fine, and I don't think a tv episode is the same as a single audio file. I am also not sure if it is so smart to have this news just after the nbc/apple conflict.

 

[Dimwhit]

I don't buy shows at $1.99. I would absolutely buy some at $.99. I think Apple is on the ball with this one.

 

[mikea]

This is absolutely a great idea. Being from Canada..we don't get itunes tv anyway,which sucks the big one. I download torrents, but the thing is, I would pay for it if it was avaliable....it has something to do with stupid liscencing laws up here. But, the 99 cents is brilliant...they would sell alot more and it would be an incentive to buy instead of getting torrents for free. It sure has worked for music with me..these tv and music executives need to understand that everything has changed...wake up.
that's all