How exactly do you compare the prices? Let's say a family has cable service and watches TV, say, 4 hours per day (we all know it's way more on average).
So it's 4 * 30 = 120 hours. It's an eqiuvalent of 120 to 240 shows (depending on show length). Aplpe will charge you way more than Comcast.
In that case, that family would stay with cable and internet to save money instead of Apple TV downloads. For them nothing changes - but they still might turn to Apple for the odd program here and there. "Dang, forgot to DVR madmen last night... I guess I can just rent it for 99 cents from Apple right now instead of waiting for it to air again."
Apple gets the occasional purchase from them - which is still more than they used to get!
For a single person who only watches a couple of shows, it gives them a reason to cancel TV service and rely on the free content (as you point out below), OTA, or internet rentable content.
At the same time, one can watch most of these shows for free from web sites (Fox, ABC etc.).
The broadcast sites usually have their stuff online - people can get that with an antenna anyway. Not the cable networks, though. They are much less common and more afraid of this new fangled internet!
Between Comcast (quality) and web sites (free), I am not sure Apple has any wiggle room with this pricing.
I'm with you on this - I think Apple's got to be really careful. I don't know what Apple is planning, or why they are doing what they are, but I think Apple's magic "99 cent" pricing for
everything is dangerous. Somehow I think in the fight between Apple and everyone else we'll get screwed in the middle! We'll all end up getting tons of ads, I'm sure.
Second issue, rental. Why would I spend $.99 for something I can only rent for 48 hours! Full DVD seasons are released for a price around $40-$50, and drop to $20 after a few years, when on sale. Older shows would not be worth watching via this method, as buying the DVD set would be more cost effective (remember, the DVD can be resold and the cost recouped!) For $.99, 30 or 60 days should be the rental time, at least, so I can watch, and rewatch the show if I chose to.
instant gratification. Get it when you want it, not when it drops in price a few years later.
Third issue, why. Why rent when I can buy, or even better, torrent? Why impose artificial limitations on my viewing when they are uncomfortable for me?
Concessions to the TV companies/content developers. It's not to benefit us, that's for sure. It's to keep the network heads happy.
I'm sure many people will make a lot of money on this, and that a lot of people will love it, but there are better ways of doing this
Yup. I'm reminded of what the iTunes store (music) was like when it launched versus what it is now. Apple's blazing new territory and companies are nervous to follow, so they will only dip their toe in the water. If it seems inviting, they may actually got for a swim.