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More TV Executives Weigh In on 99-Cent TV Show Rentals: Viacom Out, CBS on the Fence

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The Wall Street Journal reports (subscription required) on additional comments about Apple's 99-cent TV show rental program made by executives at this week's Goldman Sachs conference. Over the past week, executives from Time Warner and NBC have weighed in with their opinions that the pricing model is not right for them, and executives from Viacom and CBS have now offered public statements regarding their companies' positions.

According to the report, Viacom CEO Philippe Dauman similarly cited the rental pricing as the primary issue, noting that it "doesn't work" for the media company that owns such cable channels as Comedy Central and Nickelodeon.
"The 99-cent rental is not a good price point," said Viacom Inc. Chief Executive Philippe Dauman at the conference, which was hosted by Goldman Sachs. "It doesn't work for us."

Mr. Dauman noted that Viacom, which owns cable networks like Comedy Central and Nickelodeon, invests heavily to produce its content and plans to increase that investment.

"We value our content a lot," he said. "We don't think Apple has it quite right yet."
Les Moonves, CEO of CBS, offered a glimmer of hope, however, that his company might be open to participating in the program down the road, indicating that he is taking a wait-and-see attitude.
"What we said to them - and the Apple guys are terrific and obviously the application is terrific - is let us see what happens," Mr. Moonves said. "There are two networks in and two networks not in. Let's see what happens and maybe we'll talk again in January, maybe we'll talk again next year."
For the time being, ABC and Fox remain the only two participants in the rental program being promoted alongside the new Apple TV set to launch in the very near future. Both companies have aligned themselves closely with Apple, as Apple CEO Steve Jobs is the largest individual shareholder of ABC parent Disney while Fox and its parent News Corp have been said to be aggressively courting Apple in attempting to gain a foothold on the rapidly-expanding digital content and tablet markets.

Article Link: More TV Executives Weigh In on 99-Cent TV Show Rentals: Viacom Out, CBS on the Fence
 

ryanw

macrumors 6502
Oct 21, 2003
307
0
Wow, this is retarded! Why don't they provide the $1.99 version for RENT OR a free version with commercials in it or iAds or something to get them the revenues the want.
 
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mBox

macrumors 68020
Jun 26, 2002
2,309
63
Wow, this is retarded! Why don't they provide the $1.99 version for RENT OR a free version with commercials in it or iAds or something to get them the revenues the want.
How about 100% of the profits? Im sure Apple can afford it.
 
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donlab

macrumors 6502
Jun 3, 2004
295
84
USA
dinosaurs

"We value our content a lot," he said. "We don't think Apple has it quite right yet."

Just keep waiting like you have been. Wait until you are finally extinct.
 
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840quadra

Moderator
Staff member
Feb 1, 2005
8,204
3,492
Twin Cities Minnesota
So these same companies will put content on places like Hulu, or other free streaming sites with ads, but won't put it up were they are getting direct financial compensation?

In other words they are saying..." our shows are not popular enough to generate enough rental revenue" .

Possibly not, but I have a feeling that networks like this are slowly going under. Honestly, there is enough good content on YouTube (or similar) by "amateur hour" folks, that I haven't felt the need to renew my cable subscription for almost decade.
 
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pika2000

Suspended
Jun 22, 2007
5,587
4,899
I'm going to guess a scenario.
Maybe Apple does this intentionally. Google TV is going to be able to run apps. What if the actual content creators start taking advantage of that, making their own apps, bypassing the networks/middlemen altogether. The networks might see that as a larger threat, and then sign up with Apple to hold whatever control they still have. Once Apple gets everybody, then Apple flips on the apps switch on Apple TV, leaving the networks scrambling. Apple will become THE "network" for iptv. :D
 
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spice weasel

macrumors 65816
Jul 25, 2003
1,255
9
I really don't understand what these execs are thinking. Renting for $.99 is likely going to make them more money than having people buy episodes at $2.99 or $1.99 a pop, because more people are likely to rent than buy. I personally don't buy tv shows because the chances of me ever watching them again are slim. But if I miss something on television I might consider renting it for $.99, or even getting a whole season via rental that way. Now, if I get into a new tv show and want to watch the whole season I just put it on my Netflix queue. Buying a whole season of a program - especially those with 20+ episodes - is damn expensive.
 
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MacbookAlum1536

macrumors regular
Nov 21, 2008
139
0
What Apple needs to do to make Apple TV and rentals a success is to make networks join up. They should do this by saying to any network that doesn't agree is that if you don't sell rentals you're off the store and tell fox if they like the iPad then to put all their shows up. That's the only way rentals will successful otherwise get NC up and running then stream purchased shows over.
 
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PJC23

macrumors newbie
Jul 13, 2008
2
0
Tampa, FL.
I wonder what the worth of a single viewer is in commercial sales revenue to the networks. If the consumer wants to pick up the that tab in order to not be subjected to commercials I don't see why it matters. I believe like many others on this forum that the networks are afraid of their business model crumpling before their eyes. Gotta love capitalism!
 
Comment

Green™

macrumors member
Sep 20, 2010
60
0
Who Cares?

Seriously, I feel bad for the people who waste their life watching television.
Television, stunting human momentum since 1938. :(

Oh, and Fox sucks.


---
Go 
 
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thirtyeyes

macrumors member
Jul 1, 2009
32
0
I'm not a fan of network TV, so I would find it very funny if this thing took off and left these guys in the dust. If so, I think Apple should make them pay dearly to be incuded at a later date.
 
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jaw04005

macrumors 601
Aug 19, 2003
4,370
16
AR
The networks need to quit looking at online as a replacement for cable/satellite and look at online as another business opportunity that may replace more traditional models at some point.

At this point, it shouldn't matter if you're only receiving 15 cents for a online viewer per episode and 50 cents for a traditional viewer. You're receiving nothing from your customers that are downloading shows on Bit Torrent, Newsgroups or P2P networks. That's your actual competition.

They're jumping the gun. This is a new market that has the potential to focus on specific demographics---an advertiser's dream. They need to give it a chance to be built up. Advertisers will eventually see the light.

In revenue streams like Apple's model, where you're actually purchasing or renting the show the risk is even less. There's no way they're receiving a 60-70 cents average per show episode on cable/satellite.
 
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Lesser Evets

macrumors 68040
Jan 7, 2006
3,504
1,266
Stupid execs... I guess they will continue to lose money as people download the rips from broadcast.

Good job, morons.
 
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Piggie

macrumors G3
Feb 23, 2010
8,571
3,022
But this is STEVE JOBS..

Don't these minions realise who they are talking to here.

Who do they think they are disagreeing with the opinion of the almighty!

People will be saying they like Flash next !!! :eek:
 
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FFArchitect

macrumors regular
Mar 14, 2010
196
0
I think a model where the marketplace decides the price is feasible. It is with apps.
 
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Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
lets see ABC effectly has job as a biggest vote so it should not really count.

Other networks so far have effectly said no. Sounds like they do not want to be held by the ball by Apple. They watch how Apple strong armed the record companies. For example not letting them cut other deals with iTMS competitors like Amazon. Price point forcing and so on.

Sounds like they refuse to get into that game. So far all the shows I watch are owned by networks that have said no. As soon as CBS says no that is all the shows. iTunes will have none of the shows.
Also the fact that it ties ONLY into apple products is hurting Apple cases. If iTunes could stream to 360, blu ray and so on they might be more open but as it stands Apple will only stream threw a computer directly connected to the TV or POS known as Apple TV.
 
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dexthageek

macrumors 6502
Dec 7, 2007
391
0
And we can count NBC out especially if the Comcast takeover is approved.

Comcast will NEVER agree. They will do everything in their power to keep subscribers. P2P transfers and torrents of TV shows will continue to increase unless these content providers listen to their customers.
 
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Stella

macrumors G3
Apr 21, 2003
8,499
5,366
Canada
I'm not a fan of network TV, so I would find it very funny if this thing took off and left these guys in the dust. If so, I think Apple should make them pay dearly to be incuded at a later date.

And these networks will just go over to Google et al instead, while giving Apple the finger....

Shoot / Foot.

A lot of content is already available on the Network's website so why would you want to pay >$0.99 in the first place?
 
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Consultant

macrumors G5
Jun 27, 2007
13,310
32
These clueless dinosaurs don't realize you can rent some movies for $0.99.

Guess, what? People can record the show off the air for free, if these dinosaurs want to make it difficult for end users to pay them.
 
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Fuchal

macrumors 68020
Sep 30, 2003
2,467
719
99 cents is still TOO much. That comes out to about $20 or so per season of a US TV show to watch once. At that price, if you watch more than 1 or 2 TV shows you're better off paying for cable.
 
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RalfTheDog

macrumors 65832
Feb 23, 2010
1,501
254
Lagrange Point
The long term solution will be for Apple to directly purchase the rights to the content and remove them from network TV. This will not work for the shows that are owned directly by the networks, but they could kill off the middlemen for most content.

Broadcast TV is a waste of RF bandwidth and the networks only like shows designed for people with an IQ of 60. They both need to die.
 
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ctdonath

macrumors 65832
Mar 11, 2009
1,504
485
"The 99-cent rental is not a good price point,"
What, they're making more than that per viewer from the current ad-laden delivery format?
Seriously, I feel bad for the people who waste their life watching television.
Which points at the niche Apple is trying to address: if you're going to watch TV, then have the option to do so ad-free on demand at a fair price. Hey, it is part of our culture, so there is some quasi-obligation to participate. (This coming from one who only watches via Netflix and ABC/NBC/CBS websites.)
 
Comment

maflynn

Moderator
Staff member
May 3, 2009
67,176
34,302
Boston
"We value our content a lot," he said. "We don't think Apple has it quite right yet."

Just keep waiting like you have been. Wait until you are finally extinct.

Except they're the ones with the content, not apple. I do not see Nickelodeon becoming extinct anytime soon.
 
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ctdonath

macrumors 65832
Mar 11, 2009
1,504
485
The long term solution will be for Apple to directly purchase the rights to the content and remove them from network TV.

Thing is, bulk of viewers want their preferred shows dictated to them - which requires a network TV channel.

Remember (and all Internet TV hopefuls miss this): the TV model is "turn on, pick one of a dozen channels, watch whatever is showing." Whoever makes an Internet TV device that dead simple (or at least IQ 60 simple) with sufficiently engaging shared-experience material will win.
Apple TV still misses that winning paradigm. It will for $0.99 get you what you request, but most viewers don't want to request, they want to sit back and be given with zero effort.
 
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