Apple looking to halve cost of iTunes TV downloads - report

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Comments

  • Reply 21 of 67
    How about something better than 1.99 for music videos. Why are they more than the song to begin with??? This is making money off something they 'throw away' after a few months as it is.



    sigh
  • Reply 22 of 67
    tenobelltenobell Posts: 7,014member
    Quote:

    Maybe you didn't realize it, but Apple's shows have restrictive DRM on it as well. No DVD burning, which helps Apple a lot, because then it gives them the oppurtunity to sell their other peripherals.



    I'm not arguing for no DRM, but NBC wants even more restrictive DRM than Fairplay.



    Quote:

    Just remember, Apple is trying its best to make as much money as it can. Cheaper prices would mean more downloads, which mean more sales of iPods and, hopefully for them, AppleTvs, which means even more money for Apple. They're not doing this because they're concerned about you first and foremost.



    Yes I know all of this and nothing I wrote contradicts it. My point is that every other service is rolling over to whatever demands music and television have in respects to downloads. Music and television have no real interest in seeing downloads succeed they would rather protect their physical media sales. But their short sightedness does not see that their future customer base is downloading content more than buying physical media.



    My point is that Apple is the only store pushing them to see the future and take advantage of what is inevitably going to happen whether they want it to or not. Yes its true Apple is exploiting the situation to its own advantage that's what a good business is supposed to do.
  • Reply 23 of 67
    tenobelltenobell Posts: 7,014member
    Quote:

    How about something better than 1.99 for music videos. Why are they more than the song to begin with??? This is making money off something they 'throw away' after a few months as it is.



    Well with the video you are getting the song. The iPod will play the music from the video as though it is any other song.
  • Reply 24 of 67
    tenobelltenobell Posts: 7,014member
    Quote:

    But maybe if they had variable pricing, it would make sense. Why should Season 3 of 24 cost the same as Season 7? But we'll never get any of that. Apple's too stubborn, and the studios are too stubborn (and apple fans will never call out for it, because they drank too much kool-aid).



    I agree variable pricing does make sense. I'm sure Apple knows this. I imagine its all apart of the negotiations. Apple starts by saying we want to sell all shows for .99. Then after negotiating they will likely settle somewhere in the middle with some type of variable pricing structure.
  • Reply 25 of 67
    Quote:
    Originally Posted by TenoBell View Post


    What exactly is the better alternative. Unbox has received NBC content. NBC gets to decide the pricing and tightened he DRM, Amazon isn't fighting them at all.



    Apple is dragging the music and television industry kicking and screaming in the directions things are going anyway. The younger generation coming up will be used to downloading their content whether they pay for it or not. Would they rather people spend .99 or torrent the show for free?



    My problem is that this would drag the TV industry Apple's way only. At 99 cents, Apple can't be making much of a profit. And that is fine for Apple because they make the vast majority of their money from the sales of iPods, iPhones, and AppleTV's. And assuming I don't want to be stuck watching the video at my computer, what options do I have with iTunes Store downloads? Only Apple options: iPods via video out and AppleTV.



    Is that what you want? Only one choice in hardware vendors? I don't understand why people seem so quick and eager to surrender their freedom of choice to Apple.



    Unbox was just an example. If Apple would only be making a few pennies per episode with the new 99 cent prices, Amazon's only real option is to either try to match their price or just shut down their video download service. And what incentive would any other company have to try to start a download service for TV shows? If the best they could expect is to make 5 cents an episode and start-up costs would be around five million, they would have to sell 100 million episodes before they could see any sort of profit, not even including actual operating costs. I'm pulling those figures out of my butt, but hopefully you can see my point. Since Apple doesn't need to make any profit with TV show downloads, they can simply make it completely unprofitable for anyone to compete with them.
  • Reply 26 of 67
    Quote:
    Originally Posted by johnmcboston View Post


    How about something better than 1.99 for music videos. Why are they more than the song to begin with??? This is making money off something they 'throw away' after a few months as it is.

    sigh



    Most videos are throw aways because they are the promo for the moment for the song. That gets you interested in the other songs and maybe the whole album for purchase. If you remember, those videos used to be free on iTunes. But, as long as someone can make a buck, it will be sold.



    I haven't heard lately how the sales are going for DRM free songs compared to the .99 version.

    I don't think that TV shows will ever be DRM free unless you get the DVD. But, there are some movies that have some kind of DRM on them and they can't be played on certain players.



    It seems like it will take many years for all of this to settle out. Technology is moving faster than the creators, distributors, and buyers can keep up with all of the advances and changes.
  • Reply 27 of 67
    Quote:
    Originally Posted by AppleInsider View Post


    In an aggressive bid to push more digital video sales, Apple Inc. is reportedly talking to television networks about cutting the price of TV show downloads through iTunes in half.



    Citing three people familiar with the proposal, Variety claims that Apple has told networks and studios that it would like to slash the cost of most TV episodes sold via iTunes from the current $1.99 to just $0.99 -- the same price it charges for most music singles.



    Apple reportedly believes the move will spur a more than a twofold increase in sales of the digital television downloads, which would effectively offset the impact of the price reduction through higher volumes.



    Not surprisingly, the networks have been hesitant to embrace to the concept, which may have also played a part in NBC's decision last week not to renew its current iTunes distribution deal, according to Variety.



    Of particular concern for networks is the impact such a move would have of sales of high-margin DVD box sets, and subsequently the networks' partnerships with large DVD resellers such as Wal-Mart, Target and Best Buy.



    For instance, NBC Universal's just released "Heroes" on DVD is expected to retail in most stores for about $40 for the set of 23 episodes. But under Apple's proposed plan, the same set of episodes would cost less than $23, potentially cannibalizing the DVD sales.



    Still, there are some studios that may be willing to entertain Apple's proposal. Variety speculates, for example, that MTV or A&E may welcome the chance to sell their reality shows at a lower price, particularly since Apple would reward them with greater promotion on iTunes.



    An Apple spokesman declined to comment on the report, pointing only to a previous statement that it wouldn't agree to NBC's request for a "dramatic price increase."



    Apple could increase sales by marketing their US catalogue worldwide. In the UK we have recently been offered TV shows - a fraction of the US content at double the price - and no movies. Sort out the licensing and suddenly the iPod Touch et al become very usable! Oh well - carry on dreaming!
  • Reply 28 of 67
    Quote:
    Originally Posted by caliminius View Post


    My problem is that this would drag the TV industry Apple's way only. At 99 cents, Apple can't be making much of a profit. And that is fine for Apple because they make the vast majority of their money from the sales of iPods, iPhones, and AppleTV's. And assuming I don't want to be stuck watching the video at my computer, what options do I have with iTunes Store downloads? Only Apple options: iPods via video out and AppleTV.



    Is that what you want? Only one choice in hardware vendors? I don't understand why people seem so quick and eager to surrender their freedom of choice to Apple.



    Unbox was just an example. If Apple would only be making a few pennies per episode with the new 99 cent prices, Amazon's only real option is to either try to match their price or just shut down their video download service. And what incentive would any other company have to try to start a download service for TV shows? If the best they could expect is to make 5 cents an episode and start-up costs would be around five million, they would have to sell 100 million episodes before they could see any sort of profit, not even including actual operating costs. I'm pulling those figures out of my butt, but hopefully you can see my point. Since Apple doesn't need to make any profit with TV show downloads, they can simply make it completely unprofitable for anyone to compete with them.



    Does anyone remember when there were complaints about Microsoft giving away their software to gain hold of a higher percentage of the market? Then they had a strangle hold on anybody else that wanted to enter but couldn't afford it and there was less software innovation because of it. I hope Apple keeps away from that kind of strategy against other competitors. I know, it is a business and may the biggest seller win. But, at what cost to the whole industry in the long run.
  • Reply 29 of 67
    They're so full of themselves that they can't come to the realization that not only would I buy my 'Heroes' and 'Lost' episodes online, but I would also buy the 'Heroes' and 'Lost' box sets, too.



    If they had one ounce of trust in consumers, they'd give most of the people what they mostly want, and that's the freedom to do what we want with things we pay money to buy.



    Instead, they spend their energy in trying to prevent Grandma Moses from giving Aunt Tillie a MP3 of Lawrence Welk's Last Waltz--or, rather, in trying to monetize that exchange.



    Their energy would be well spent in providing the average consumer with cool ways of accessing media. Instead, they do everything they can to thwart it.



    No wonder they're going to disappear in a few years.



    Long live Rick Rubin.
  • Reply 30 of 67
    pt123pt123 Posts: 696member
    Maybe Jobs should drop the price of Disney movies to show the rest of the studios how much better things would be for them? Show the other studios how much more they would be making.
  • Reply 31 of 67
    Quote:
    Originally Posted by pt123 View Post


    Maybe Jobs should drop the price of Disney movies to show the rest of the studios how much better things would be for them? Show the other studios how much more they would be making.



    That's a good point. Iger has shown maverick-ness before, so it wouldn't be out of the question.



    They should also consider placing their brand on p0rn. They'd make a killing.
  • Reply 32 of 67
    tenobelltenobell Posts: 7,014member
    Quote:

    Is that what you want? Only one choice in hardware vendors? I don't understand why people seem so quick and eager to surrender their freedom of choice to Apple.



    I do use the iPod and iTunes for digital content. I also buy CDs, DVDs, I use Netflix, I have cable and video on demand, I will also use Joost when it becomes available.



    There are many ways to access content. So no I don't believe iTunes will ever be the only option.
  • Reply 33 of 67
    Quote:
    Originally Posted by AppleInsider View Post


    For instance, NBC Universal's just released "Heroes" on DVD is expected to retail in most stores for about $40 for the set of 23 episodes. But under Apple's proposed plan, the same set of episodes would cost less than $23, potentially cannibalizing the DVD sales.



    Yes, because the TV Networks should definitely be in the business of keeping the DVD pressing plants, marketing companies, distributors, trucking companies, retail shops, etc afloat.



    Either way, 99 cents is still not cheap enough for these relatively low quality videos. Wake me up when they start distributing in at least 1280x720 resolution.
  • Reply 34 of 67
    pt123pt123 Posts: 696member
    Quote:
    Originally Posted by SpamSandwich View Post


    For my money DVDs are still a much better value.



    Yeah me too. It works on all the DVD players I already have. I don't have to pay for the hard disk space to store it. I can rent. I can share with friends and share theirs.
  • Reply 35 of 67
    pmjoepmjoe Posts: 565member
    This would be great news, with the handful of shows I watch, it may become cheaper for me to scale back or drop most of my cable service, and get shows from the iTunes Store. One would hope anyhow.
  • Reply 36 of 67
    Quote:
    Originally Posted by Squarepants View Post


    Apple could increase sales by marketing their US catalogue worldwide. In the UK we have recently been offered TV shows - a fraction of the US content at double the price - and no movies. Sort out the licensing and suddenly the iPod Touch et al become very usable! Oh well - carry on dreaming!



    Converted to $ using current exchange rate... for convenient comparison



    Lost Season 3:



    DVD at Amazon.co.uk $90.85

    DVD at Amazon.com $38.99



    A factor of 2.3 more expensive in the UK on DVD at Amazon



    iTunes Music Store UK $66.63

    iTunes Music Store US $34.99



    A factor of 1.9 more expensive in the UK at the iTunes Music Store



    Looks like Apple are, 'relatively', giving us in the UK a good deal. Anyway, I guess it's best to think of it that way when we are being charged around double US prices!
  • Reply 37 of 67
    Now I've just worked out that with current offers from BA or Virgin, I could fly return to New York from London for under $483 (including airport taxes!) and if I wanted to get 10 or more DVD boxed sets of TV series, I would actually save money buying them in New York on Amazon.com compared with Amazon in the UK!



    Wow!
  • Reply 38 of 67
    Quote:
    Originally Posted by Lafe View Post


    There's that word 'cannibalizing' (or if you prefer, 'cannibalising') again.



    Like when someone's afraid iPod touch will cannibalize iPhone sales.



    I thought cannibals ate their own kind. If that's the definition, I'd like to see

    journalists, bloggers, pundits, et al, stop misusing it. A download is not a DVD.

    An iPod touch is not an iPhone.



    How about "preying upon". That's a creature eating a creature of a different

    kind, right? That should work.



    "...potentially preying upon the DVD sales."



    Sounds better.









    Sorry, but in the finance world, sales cannibalization applies when a new product is a success, but directly and negatively affects the sales of another product. It would not make sense if used in the same way as natural science. Besides, it's fun.
  • Reply 39 of 67
    jeffdmjeffdm Posts: 12,953member
    Quote:
    Originally Posted by Squarepants View Post


    Apple could increase sales by marketing their US catalogue worldwide. In the UK we have recently been offered TV shows - a fraction of the US content at double the price - and no movies. Sort out the licensing and suddenly the iPod Touch et al become very usable! Oh well - carry on dreaming!



    That would be nice, but I doubt it's up to Apple. Think about it - if they had those rights, why would they be holding out on it for so long?



    Quote:
    Originally Posted by pt123 View Post


    Maybe Jobs should drop the price of Disney movies to show the rest of the studios how much better things would be for them? Show the other studios how much more they would be making.



    Well, Disney might be the one to try it, because I think they control the rights to their entire catalogue worldwide.
  • Reply 40 of 67
    jeffdmjeffdm Posts: 12,953member
    Quote:
    Originally Posted by SpamSandwich View Post


    For my money DVDs are still a much better value.



    I think so too. The fact that I really can't resell a download cuts their value to me by maybe half. If I buy a DVD set for $40, don't like it, I might be able to jettison it for $20. Or even just give it away to someone that would appreciate having it, with DVD that would be a legal way to share the joy, with downloads, that's not legal.
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