“If Apple cut the price of each TV episode in half — to 99 cents, from $1.99 — would sales on iTunes increase enough to offset the price drop? Experiments are under way to find out, and the head of the nation’s No. 1 television network, CBS, indicated last week that some shows, at least, would be priced under a dollar in the future,” Brian Stelter reports for The New York Times.
“Apple wants to ignite TV show sales, especially as it prepares to introduce the iPad tablet computer next month,” Stelter reports. “But its proposals to lower prices across the board are being met by skepticism from the major networks.”
“Television production is expensive, and the networks are wary of selling shows for less,” Stelter reports. “They are equally wary of harming their far more lucrative deals with affiliates and cable distributors, who may feel threatened by online storefronts like Apple’s and those operated by Amazon, Microsoft and Sony.”
Stelter reports, “But the networks do not want to ignore the 125 million customers with credit cards who have iTunes accounts, either. ‘We’re willing to try anything, but the key word is ‘try,” said a TV network executive who requested anonymity because his company had declined to comment publicly on talks with Apple.”
“Separately, Apple has proposed to some networks that the store sell a subscription package of popular TV shows. At a price some reports have set at $30 a month, the subscription service would be a direct threat to entrenched cable and satellite providers,” Stelter reports. “Apple has encountered trepidation from some networks, but the proposal is not off the table, according to executives at two of the networks.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]