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. If the choice 99 cents or free via torrent, do these executives not understand reality? Once the new generation gets used to getting shows for free via torrents, they’ll never go back to opting to pay. The trick is to get everyone used to paying NOW, before it’s too late.

  2. If the choice 99 cents or free via torrent, do these executives not understand reality? Once the new generation gets used to getting shows for free via torrents, they’ll never go back to opting to pay. The trick is to get everyone used to paying NOW, before it’s too late.

  3. 99 cent too low!? I think it is way to high. 50 cents maybe. Or a 13 episode season for $5. This is a one time viewing, a rental, not owning. The only shows I would rent would be those I want to watch that are not on cable or Hulu. (I need to check out Netflix)

  4. 99 cent too low!? I think it is way to high. 50 cents maybe. Or a 13 episode season for $5. This is a one time viewing, a rental, not owning. The only shows I would rent would be those I want to watch that are not on cable or Hulu. (I need to check out Netflix)

  5. I got fed up with being treated like a milk cow by Comcast and the satellite companies. I was paying $65 per month and watching 6 out of the available 500 channels. I did some investigating and found that the 6 channels I actually watched were available via an ancient communications device called an antenna. The bonus is that now that everything is digital the signal is either there in beautiful, high quality HD, or it’s not there at all. No snow, no ghosts, no graininess. I have watched my last Extenze commercial. I would and do pay to rent movies and special shows, but overall I’m paying much less and enjoying it more. Screw you, Viacom, Comcast, and the rest of the leeches delivering 6 channels of HSN, and running the same 3 movies 120 times a month and calling it entertainment.

  6. I got fed up with being treated like a milk cow by Comcast and the satellite companies. I was paying $65 per month and watching 6 out of the available 500 channels. I did some investigating and found that the 6 channels I actually watched were available via an ancient communications device called an antenna. The bonus is that now that everything is digital the signal is either there in beautiful, high quality HD, or it’s not there at all. No snow, no ghosts, no graininess. I have watched my last Extenze commercial. I would and do pay to rent movies and special shows, but overall I’m paying much less and enjoying it more. Screw you, Viacom, Comcast, and the rest of the leeches delivering 6 channels of HSN, and running the same 3 movies 120 times a month and calling it entertainment.

  7. I can rent a 2-hour movie from Redbox for $1.00, yet this idiot thinks that his less than 60 minute show is worth more than .99¢? I’ll wait till next year and watch it on Netflix and it won’t cost me anything extra.

    Irony in this is that people are shutting off their cable services in favor of Netflix and Redbox. Some cable companies are attempting to maintain viewership – in order to sale advertising – by giving away basic cable if the customer has another product through them, such as phone or internet.

    It won’t be long before the revenues from cable and satellite providers dwindle so low that they are willing to take whatever deal SJ is willing to give them at the moment. Just wait and see..

    MM

  8. I can rent a 2-hour movie from Redbox for $1.00, yet this idiot thinks that his less than 60 minute show is worth more than .99¢? I’ll wait till next year and watch it on Netflix and it won’t cost me anything extra.

    Irony in this is that people are shutting off their cable services in favor of Netflix and Redbox. Some cable companies are attempting to maintain viewership – in order to sale advertising – by giving away basic cable if the customer has another product through them, such as phone or internet.

    It won’t be long before the revenues from cable and satellite providers dwindle so low that they are willing to take whatever deal SJ is willing to give them at the moment. Just wait and see..

    MM

  9. Viacom and Warner are just using price as a excuse.

    If Steve Jobs wasn’t Disney’s largest shareholder and neutral like Netflix, there likely wouldn’t be a problem.

    I wouldn’t want to give my competition the benefit of my content neither. You got to buy my operation to get me under your contrl, not just going to give it to you.

    Look at Comcast now owning NBC, what a conflict that’s going to be.

    Who are we going to watching in the future?

    Comcast/NBC over cable and Disney/iTunes over DSL?

    Comcast already hates the heck out of Netflix, big bandwidth hog and little money for them.

  10. Viacom and Warner are just using price as a excuse.

    If Steve Jobs wasn’t Disney’s largest shareholder and neutral like Netflix, there likely wouldn’t be a problem.

    I wouldn’t want to give my competition the benefit of my content neither. You got to buy my operation to get me under your contrl, not just going to give it to you.

    Look at Comcast now owning NBC, what a conflict that’s going to be.

    Who are we going to watching in the future?

    Comcast/NBC over cable and Disney/iTunes over DSL?

    Comcast already hates the heck out of Netflix, big bandwidth hog and little money for them.

  11. His reasoning is pretty easy to understand: They get more than the rental price when they sell advertisements. He forgets that he needs viewers who want to watch the content. He forgets that he first needs to ‘sell’ to viewers, before he can sell the viewers to the advertisers — which do not want to be sold to advertisers anyway.

    He does not understand his own business. He does not realize who ultimately pays the bill (us viewers).

  12. His reasoning is pretty easy to understand: They get more than the rental price when they sell advertisements. He forgets that he needs viewers who want to watch the content. He forgets that he first needs to ‘sell’ to viewers, before he can sell the viewers to the advertisers — which do not want to be sold to advertisers anyway.

    He does not understand his own business. He does not realize who ultimately pays the bill (us viewers).

  13. look at what happened with iTunes music when they went to $1.29 – now I don’t buy as much – I know it is only 30 cents more but it is not an impulse buy like 99 cents is. I might rent a TV show for 99 cents and if i like it I might pay that again without question, but if it costs more than that I might not but it at all and certainly won’t buy it a second time..

  14. look at what happened with iTunes music when they went to $1.29 – now I don’t buy as much – I know it is only 30 cents more but it is not an impulse buy like 99 cents is. I might rent a TV show for 99 cents and if i like it I might pay that again without question, but if it costs more than that I might not but it at all and certainly won’t buy it a second time..

  15. So.. I pay something like $80 a month for cable. I certainly watch more than 80 shows in a month, I’d wager, and I have access to more than 100 channels of programming 24-hours a day. If anything, 99 cents to watch a single show is too expensive. Where is the disconnect with these bozos?

  16. So.. I pay something like $80 a month for cable. I certainly watch more than 80 shows in a month, I’d wager, and I have access to more than 100 channels of programming 24-hours a day. If anything, 99 cents to watch a single show is too expensive. Where is the disconnect with these bozos?

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