Viacom also opposed to Apple's 99 cent TV rentals, CBS will 'see what happens'
Viacom's chief executive explained that Apple's 99 cent TV rental plan "doesn't work" for the company, while CBS is waiting to see the numbers for rentals of ABC and Fox show.
The comments came during a media executive conference hosted by Goldman Sachs and covered by the Wall Street Journal.
"The 99-cent rental is not a good price point," said Viacom CEO Philippe Dauman. "It doesn't work for us."
As the owner of cable networks like Comedy Central and Nickelodeon, Viacom "invests heavily to produce its content," Dauman noted. Viacom is planning to increase its investment in original content.
"We value our content a lot," Dauman said. "We don't think Apple has it quite right yet."
Viacom's not the only network holding out on Apple. Les Moonves, chief executive at CBS, is still on the fence about the deal. Moonves complimented Apple, but opted to wait to see how the other two networks fare.
"What we said to them?and the Apple guys are terrific and obviously the application is terrific?is let us see what happens," Moonves said. "There are two networks in and two networks not in. Let's see what happens and maybe we'll talk again in January, maybe we'll talk again next year."
On Wednesday, NBC Universal CEO Jeff Zucker expressed his dissatisfaction with Apple's aggressive pricing. "We do not think 99 cents is the right price point for our content," NBC Universal Chief Executive Zucker said. "We thought it would devalue our content."
NBC and Apple have clashed over pricing before. In 2007, the network pulled its video offerings from the iTunes Store after Apple refused to double wholesale prices.
Chase Carey, chief operating officer of Fox's parent company News Corp., was willing to take a "short-term" risk on the rental plan. "I think we have to be willing to test some things," Carey said. Earlier reports suggested that News Corp. CEO Rupert Murdoch agreed to the lower pricing in hopes of partnering with Apple on a news venture designed for the iPad. Murdoch sees the iPad as a golden opportunity for news organizations to transition to the digital era.
Walt Disney Co., which owns ABC, was reportedly the first network on board. CEO Robert Iger wants to be a leader in adoption digital technologies.
"We made a decision five years ago?actually when I got this job?that we would be much better off aligning with technology companies than fighting them," said Iger.
Fox and ABC remain the first two studios to agree to the 99 cent rentals. Apple announced the new partnership alongside the unveiling of its redesigned Apple TV device.
"We think the rest of the studios will see the light and get on board pretty fast," said Apple CEO Steve Jobs on Sept. 1.
The comments came during a media executive conference hosted by Goldman Sachs and covered by the Wall Street Journal.
"The 99-cent rental is not a good price point," said Viacom CEO Philippe Dauman. "It doesn't work for us."
As the owner of cable networks like Comedy Central and Nickelodeon, Viacom "invests heavily to produce its content," Dauman noted. Viacom is planning to increase its investment in original content.
"We value our content a lot," Dauman said. "We don't think Apple has it quite right yet."
Viacom's not the only network holding out on Apple. Les Moonves, chief executive at CBS, is still on the fence about the deal. Moonves complimented Apple, but opted to wait to see how the other two networks fare.
"What we said to them?and the Apple guys are terrific and obviously the application is terrific?is let us see what happens," Moonves said. "There are two networks in and two networks not in. Let's see what happens and maybe we'll talk again in January, maybe we'll talk again next year."
On Wednesday, NBC Universal CEO Jeff Zucker expressed his dissatisfaction with Apple's aggressive pricing. "We do not think 99 cents is the right price point for our content," NBC Universal Chief Executive Zucker said. "We thought it would devalue our content."
NBC and Apple have clashed over pricing before. In 2007, the network pulled its video offerings from the iTunes Store after Apple refused to double wholesale prices.
Chase Carey, chief operating officer of Fox's parent company News Corp., was willing to take a "short-term" risk on the rental plan. "I think we have to be willing to test some things," Carey said. Earlier reports suggested that News Corp. CEO Rupert Murdoch agreed to the lower pricing in hopes of partnering with Apple on a news venture designed for the iPad. Murdoch sees the iPad as a golden opportunity for news organizations to transition to the digital era.
Walt Disney Co., which owns ABC, was reportedly the first network on board. CEO Robert Iger wants to be a leader in adoption digital technologies.
"We made a decision five years ago?actually when I got this job?that we would be much better off aligning with technology companies than fighting them," said Iger.
Fox and ABC remain the first two studios to agree to the 99 cent rentals. Apple announced the new partnership alongside the unveiling of its redesigned Apple TV device.
"We think the rest of the studios will see the light and get on board pretty fast," said Apple CEO Steve Jobs on Sept. 1.
Comments
"We value our content a lot," Dauman said.
Oops. Mr. Dauman has it wrong (unsurprisingly). How much he (or they) value their content is completely irrelevant. It's how much consumers value the content that matters. If consumers don't value it any higher than 99 cents an episode, they won't pay more than 99 cents. Same story for Zucker.
Oops. Mr. Dauman has it wrong (unsurprisingly). How much he (or they) value their content is completely irrelevant. It's how much consumers value the content that matters. If consumers don't value it any higher than 99 cents an episode, they won't pay more than 99 cents. Same story for Zucker.
That is absolutely true, I even think $0.99 for renting a 20 min episode is still too much. Why don't they run ads at the beginning of an episodes and provide the content for free (as an option) is beyond me.
Steve has no shame whatsoever. He'll say anything.
And you'll twist anything. Are you preparing for a job interview at Fox News?
That is absolutely true, I even think $0.99 for renting a 20 min episode is still too much. Why don't they run ads at the beginning of an episodes and provide the content for free (as an option) is beyond me.
That's not how Apple is positioning itself with advertising-driven revenue. As their iAd platform clearly shows, they want their customers to "experience" the advertising. Maybe if iAds migrate to the television screen, then maybe shows paid for by ads will come to Apple's delivery network.
I know one thing for sure... I will happily pay $0.99 to avoid mind-numbing time-wasting ads.
Steve has no shame whatsoever. He'll say anything.
Pot, meet kettle.
Viacom's chief executive explained that Apple's 99 cent TV rental plan "doesn't work" for the company, while CBS is waiting to see the numbers for rentals of ABC and Fox show.
Selling more content "doesn't work" for Viacom, apparently.
If these studio's jack up over a 99c rental, I can't see how they'd go for a 99c sale.
Oops. Mr. Dauman has it wrong (unsurprisingly). How much he (or they) value their content is completely irrelevant. It's how much consumers value the content that matters. If consumers don't value it any higher than 99 cents an episode, they won't pay more than 99 cents. Same story for Zucker.
you are correct. unless i can purchase, keep and distribute as i see fit, $.99 is just about as much as i'm willing to pay for a rental and not a penny more. these guys will learn the hard way.
Steve has no shame whatsoever. He'll say anything.
Newtron has no shame whatsoever. He'll say anything.
I propose a new game here in AI -- the Newtron Boomerang. Every time Newtron posts something where he make stuff up and attributes it to someone else, or comes to some gem of an illogical conclusion about someone, we just repost it with the appropriate name substitutions. See the above example for a textbook boomerang.
That's not how Apple is positioning itself with advertising-driven revenue. As their iAd platform clearly shows, they want their customers to "experience" the advertising. Maybe if iAds migrate to the television screen, then maybe shows paid for by ads will come to Apple's delivery network.
I know one thing for sure... I will happily pay $0.99 to avoid mind-numbing time-wasting ads.
Jobs theory of watching TV, as he once explained, it's where you "turn off your brain". iAds are supposed to be interactive which would go against SJ's theory. And besides, one of the main advantages of an iAd is to keep the visitor in the App rather than take him to a separate website, a problem which does not exist in the TV world.
And you'll twist anything. Are you preparing for a job interview at Fox News?
You mean MSNBC or the Obama Administration don't you?! Oh wait, they are one and the same! My bad...
Well, I'm thinking of a scenario. Google TV is going to be able to run apps. Individual content creators will probably want to take advantage of that, bypassing the networks and middlemen altogether. Then the networks might see that as a bigger threat and sign up with Apple to retain whatever control they could. Then once Apple got all the networks, Apple flip the apps switch, and the networks are left scrambling, leaving Apple to be THE "network" for iptv.
Yes, it will be interesting to see what google comes up with, with their YT platform they'll have massive leverage capabilities. Moreover, Google will be willing to integrate their platform into upcoming TV sets (just plug your TV into a network), something that Apple will most probably not entertain.
Steve has no shame whatsoever. He'll say anything.
It's a real pity Appleinsider refuses to ban this troll in the name of hits.
*(provided you only want to watch a limited selection of Disney/ABC and Fox programming)
Steve has no shame whatsoever. He'll say anything.
And so will you. Even with high priced Super Bowl ads only earns a gross of $0.30 per viewer half hour of programming. Studios get $0.70 gross per rental. Assuming an average of two people per rental, the studios still come out ahead. Exactly HOW is the rental price a bad deal for the studio?
If you want to keep being a nut, that's fine, but siding against Apple on absolutely everything because it's Apple doesn't prove you're smart, it just proves you're a hater.
Apple should expand iTunes stores to countries with it's App Stores (70 or so) & punch out willing participants' content globally. When "...the rest of the studios will see the light..." it'll only be 5 months to go.
Iger's on the money, if the bigger players don't want to adapt they can become the smaller players and down-size their staff accordingly. Starting from the top.
I wonder how AirPlay will overcome the WiFi guest login issue i.e. how to get regular users to set up multiple logins to avoid giving out their passwords. Maybe Apple TV will create it's own passwordless network for AirPlay traffic only.
McD