If it quacks like a duck, it's a duck...
See this is what I'm talking about when I say people are getting stuck on the 'buy' concept. Don't think of it as buying, in fact feel free to delete the show after you 'buy' it on AppleTV. Seriously. YOU WILL STILL SPEND LESS MONEY THEN CABLE.
I'm getting stuck on the 'buy' concept because, with AppleTV, I'm paying nearly *full* purchase price.
If I were paying a rental price, I would fully agree with your logic. I'm not, I'm paying nearly full purchase price. The whole idea of a rental is that I'm paying a small fraction of the price it would normally be if I had just purchased it outright.
To illustrate let's point to colinmack's comment about the Canadian TV show "Corner Gas":
- offer a better TV subscription model (monthly by network? better/more season passes?) - downloads are the future, but give me a reason to get them from iTunes (for example, in Canada there's no reduced season pass for Corner Gas, it's simply $1.99/episode...come on)
I checked on the iTunes store and the Canadian price of a Corner Gas Season 1 Season pass is 19.99.
Now let's go over to FutureShop.ca, a large Canadian retailer that sells electronics and DVDs, for a comparative price check:
Corner Gas Season 1 at FutureShop.ca
If you follow the link, it's currently showing... 19.99. Only this one comes in a box, with multiple DVDs and it cost the
same as the iTunes download. In effect the physical product costs
more for the company to produce than the iTunes purchase, yet they are charging the same as the iTunes cost. Call it what you will, and factor in all the math you want. You have
purchased the show when you buy it on iTunes but you do
not, in any way, receive the same level of autonomy that you'd receive had you purchased it in the store.
You loose your right of first sale; if your computer crashes, you loose your purchases; you can't loan it to friends; if you have one too many computers / devices, you have to unauthorize one before you can authorize an other, etc...
In every way the iTunes purchase is the inferior choice and it would simply be much better to wait for the show to come out on DVD and purchase it outright. With iTunes you are paying nearly full price, and in the example above you
are paying full price, to make what is essentially a rental. Now since I am paying the full purchase price, I don't think it is at all unreasonable to expect that if I buy the Seasons Pass for a show from the iTunes movie store, that I also get the nice shiny box in the mail to reflect my purchase.
If cost of bandwidth is the issue, then I would even pay a few dollars
more, just like the DVD movies that come with the "digital copy" for an extra couple of bucks. I usually get those when offered because it saves me having to rip it later, and that time savings is worth a few extra bucks.
Yes, I
could just pay full retail and consider it a rental. But let us consider the absurdity of that for a second and remember that a rental, by it's definition is a short term ownership. Rental costs should always be a small fraction of the items purchase cost to represent the reduced time the item is in your possession. I wouldn't pay the full 50,000 purchase price to rent a car for a few days, but I would pay 100-150. Likewise I'm not going to pay the full 19.99 purchase price to rent a season of a TV show for a few days, but I would pay 5-7.
Now as to your comments in regards to Cable:
My cable, which included HBO and Showtime, used to cost $97 a month.
Let's say I have 8 primetime shows I watch regularly. The best possible deal is that all 8 shows have all new episodes this month. That's 8 * 4 = 32 hours of programming in that billing month. Let's say on top of this I watch 10hours a month of other random shows. So I'm paying $97 a month for 42 hours of programming (including commercials, and deleting the show after I watch it), and that's on the best possible month when all the shows are new.
Cable is like an all you can eat buffet. Just because you might only eat three or four items off the menu, the fact that the other items are there for your perusal doesn't mean you pay less if you only eat those items you like.
When you pay the $97 per month, or whatever your cable bill is, you are in effect renting
all of the shows available to you. Sure you might only regularly watch 8-10 shows per month, but the buffet of shows is still available to you. See a cool documentary on the Discovery Channel, or something on the Natural Geographic channel? Perhaps you might want to check out some oddball sporting event like pro-BMXing?
The point of cable is you get a one stop shop of content that would cost you a small fortune to rent singly and a large fortune to purchase outright. Perhaps iTunes would work better with a multi level content model:
- Tier 1: Cable Style - Unlimited download of content, that will remain accessible by you, until your subscription is canceled.
- Tier 2: Rentals - A cheap rental based on a fraction of the full retail price, expires a month after first play.
- Tier 3: Purchase - Pay full purchase price for a show and when sold in season format, you not only can download the episodes now but and at the end of the season the DVD (or Blu-Ray for an extra charge) box set will be mailed to you.
It would make tons of money all around, and I could imagine myself using a mix of all three options. If Tier 1 was modestly cheap enough, I could see myself signing up and using Tier 2 to rent movies while using Tier 3 to purchase the shows and films I like enough to want to buy.