Is Apple looking to cut the price of TV downloads?
Is Apple looking to cut the prices of their television downloads from $1.99 to $.99?
According to Variety, this is exactly what Apple is attempting to work on right now. The rumored thinking is the the increased sales volume will make up for any loss in revenue, and that Apple expects sales to at least double at the new price point.
The hurdle to this for the networks appears to be their lucrative DVD season set sales. Currently you can pick-up season 1 of NBC’s hit show Heroes on Amazon.com for $39. The season consisted of 23 episodes, and true the DVD set has extras, but you could pick up just the episodes on iTunes under this new pricing for $22.77. The economics are easy to see why it might make the networks leery of the new plan.
While some seem scared, it does seem likely some of the cable networks, such as MTV or A&E may be eager to sell their reality series at a lower price. Not only might they move more of them, but if the networks stay out of the fray, it would mean more attention would be paid to the smaller content providers.
At this time, Apple has no comment on the speculation and rumors.
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September 12th, 2007
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