“A Bloomberg report indicated Apple is in talks with News Corp. to let iTunes users rent TV shows for 99 cents,” Gabriel Perna reports for IBTimes. “The rental period would be for 48 hours, much like it is with movies. The report also said CBS Corp., NBC Universal and Walt Disney are in talks with Apple as well to get their TV shows in on this potential deal. It said Apple has plans to unveil the new offering [September 1st] at a media event in San Francisco.”
“Arash Amel, research director of digital media at research company Screen Digest, said even if this offering comes to fruition, users will continue to go to Hulu and Netflix for online TV,” Perna reports. “‘The reality is the market for consumer-based internet TV is either subscription,’ as with cable channels, ‘or free [advertising-supported]. TV show rentals for 99 cents against streaming Netflix or free Hulu services is not viable. We don’t have high hopes for it at all,’ Amel said.”
“Amel said renting model has failed in the past — Apple failed to convince studios to slash rates for their content ahead of the iPad launch, and they didn’t manage to create a subscription-based service for iTunes, though it has been rumored for years,” Perna reports. “Despite the sway of the iPad, iPhone and iPod Touch, Amel said there is no reason for the situation to change. ‘The model they are employing doesn’t fit for the TV, it hasn’t worked anywhere except with movies where there’s a history of rental transactions,’ he added.”
Full article here.
MacDailyNews Take: We’re going to take the road that’s obviously far less traveled and actually wait for Apple to announce something before we analyze it.