Viacom CEO says Apple’s 99-cent TV show rental price is too low

Apple Online Store“Viacom Inc. Chief Executive Philippe Dauman said Thursday that his company opted not to participate in Apple Inc.’s new digital rental service for television shows because its 99-cent price tag for shows is too low,” Nat Worden reports for Dow Jones Newswires. “‘The 99-cent rental is not a good price point,’ Dauman said at an investor conference here. ‘It doesn’t work for us.'”

“Apple announced the new service along with a new version of its Apple TV device, and Walt Disney Co.’s ABC broadcast network as well as News Corp.’s Fox signed on to make shows available in the offering,” Worden reports.

“Other national broadcast networks owned by NBC Universal and CBS Corp., along with all cable networks, chose not to participate due to pricing and other strategic concerns,” Worden reports.

Full article here.

MacDailyNews Take: Yet another one who doesn’t get it.

120 Comments

  1. $.99 is way too much for most TV shows. Let me subscribe to an individual TV show (Lost), sports team (Seahawks), or sports event series (Sprint cup) for a reasonable fee per season and I’m all over it, and I’ll pay extra if I don’t have to deal with Comcast or Viacom in the process.

  2. $.99 is way too much for most TV shows. Let me subscribe to an individual TV show (Lost), sports team (Seahawks), or sports event series (Sprint cup) for a reasonable fee per season and I’m all over it, and I’ll pay extra if I don’t have to deal with Comcast or Viacom in the process.

  3. @ rick

    You could have also “streamed” (or otherwise “subscribed to”) unlimited music for whatever that monthly price was (or stolen it for free), yet billions of tracks have been sold for 99-cents each by the iTunes Store.

  4. @ rick

    You could have also “streamed” (or otherwise “subscribed to”) unlimited music for whatever that monthly price was (or stolen it for free), yet billions of tracks have been sold for 99-cents each by the iTunes Store.

  5. Apple does not really care so much about how many 99-cent rentals it sells. Apple cares how many Apple TVs it sells. The TV show rental service is value-added service aimed at giving potential Apple TV customers one more reason to buy a $99 Apple TV.

  6. Apple does not really care so much about how many 99-cent rentals it sells. Apple cares how many Apple TVs it sells. The TV show rental service is value-added service aimed at giving potential Apple TV customers one more reason to buy a $99 Apple TV.

  7. 10 million rentals @ $0.99 is less say $0.29 for Apple’s costs etc.. is $0.60 * 10 Million is a cool 6 Million that you would not have to pirating. Did Hulu earn Viacom 6 Million last year? I think not in fact I don’t think Viacom earned 6 Million combined from all of their Ad based Web crap last year and will not even earn 1 Million next year.

    MDN Word “Fire” – Viacom circles bowel and has to have a Fire sale because they missed the future.

  8. 10 million rentals @ $0.99 is less say $0.29 for Apple’s costs etc.. is $0.60 * 10 Million is a cool 6 Million that you would not have to pirating. Did Hulu earn Viacom 6 Million last year? I think not in fact I don’t think Viacom earned 6 Million combined from all of their Ad based Web crap last year and will not even earn 1 Million next year.

    MDN Word “Fire” – Viacom circles bowel and has to have a Fire sale because they missed the future.

  9. Let me put this clearly – making money doesn’t work for us. After making money on the show through cable and satellite deals, adding millions of TV show rentals on top of that at $0.99 apiece would just be utterly ridiculous.

    We would rather have people gain access for free through various means, and then hope that a year later they will want to purchase a DVD containing an entire season of episodes at roughly the same price per episode, maybe even less – especially if the DVD is discounted to clear the inventory.

    No, AppleTV rentals at a reasonable price aren’t for us. We like our strategy. We like it a lot.

  10. Let me put this clearly – making money doesn’t work for us. After making money on the show through cable and satellite deals, adding millions of TV show rentals on top of that at $0.99 apiece would just be utterly ridiculous.

    We would rather have people gain access for free through various means, and then hope that a year later they will want to purchase a DVD containing an entire season of episodes at roughly the same price per episode, maybe even less – especially if the DVD is discounted to clear the inventory.

    No, AppleTV rentals at a reasonable price aren’t for us. We like our strategy. We like it a lot.

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