“Apple is close to announcing it has signed a deal to sell HBO programs and movies on the iTunes website, according to HBO employees involved in executing the agreement,” Josh Saul reports for Portfolio.com.
“The deal marks the first time that Apple has agreed to a separate price structure for a content provider, one of the employees said,” Saul reports.
“The HBO insiders said that the new service would be launched and announced simultaneously, most likely in a week or two,” Saul reports.
“The HBO-Apple agreement is a strategic coup for both companies. Apple is trying to increase sales and awareness of its new Apple TV, a device that allows viewers to rent movies and buy content from your television. HBO wants to profit from its archive by letting fans buy old episodes of shows like Deadwood and The Larry Sanders Show,” Saul reports.
“The terms of this new deal could open a Pandora’s box for iTunes. With the advent of pricing variation, movie studios, and musicians will want to charge more for their big hits. Apple could be pressured to accept variable pricing for other content, a change it has resisted in the past,” Saul reports.
“‘We should have done this a long time ago,’ said an HBO insider,” Saul reports.
Full article here.
[Thanks to MacDailyNews Reader “Linux Guy And Mac Prodigal Son” for the heads up.]
If so, Steve Jobs should grant Apple-approved (simple and consistent) variable pricing options to everyone except NBC. They need to do at least a year of penance.