MacDailyNews Take: Oh, you mean Apple is asking networks to be smart? Forget about Zucker.
Li continues, “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.”
MacDailyNews Take: The networks fear boosting downloads.
Li continues, “In recent months, Apple has suggested during meetings with media executives that the price it charges consumers for TV shows be halved from $1.99 to $1, people close to the discussions said. Apple’s belief, media executives said, is that drastically cutting prices could spur sales of TV shows on the iTunes digital entertainment storefront, which have so far frustrated Apple executives… TV executives anticipate serious talks on video pricing after the tablet’s debut. ‘They [Apple] know how to push,’ one senior media executive said. ‘It’s not a push, it’s a suggestion,’ he added, but ‘it comes up in all the conversations.’”
MacDailyNews Take: They “know how to push,” but “it’s not a push.” Obviously, it doesn’t take much to become a TV executive.
Li continues, “Apple has also floated the idea of creating a lower-cost video subscription service with News Corp, Time Warner, Viacom, Disney and CBS which would combine the ‘best of television’ and would cost $30 per month. But most companies have resisted the idea as it would be viewed as a rival to existing pay television services that have proven stable and lucrative during the recession.”
Full article here.
[Attribution: The Business Insider. Thanks to MacDailyNews Reader "James W." for the heads up.]
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