Boffo scuttlebutt out of Lalaland: Fruit-tech tells the Nets to chop epi-bucks in half! Socko! Peacock.
(Non-Variety translation: Rumor has it that Apple wants to change the price of iTunes TV downloads to 99 cents.)
I’ve been thinking and talking a lot about why Apple would want to force the networks to make less money per download on TV shows, and the best answer I’ve heard comes from my fiancee: Apple believes cheaper downloads will lead to more sampling, and therefore greater popularity for newer shows.
Think about it. You’ve heard great things about “How I Met Your Mother,” but you don’t want to spend the time or money to get the first DVD on NetFlix. The whole series isn’t available through On-Demand cable, and you’re definitely not sold enough to buy the box. With a full iTunes archive, you could try out the pilot for a buck. At $2, it feels too much like you’re over-paying for a set you might want later, as sets average out to about $2 per episode. At a dollar, it’s a product sample. For $2, you’ve already invested.
The real competition for iTunes downloads isn’t DVD box sets — it’s cable On Demand service. That’s what hasn’t clicked until now. The TV networks, because many of them also own record companies, can only view their product compared to song prices. But it’s an artificial comparison. Which will you play more times: A hot song you love or an hour-long episode of Heroes? If anything, songs should cost more than TV shows.
For myself, I would buy a lot more shows on iTunes if the price goes down — especially for series I don’t watch or from channels I don’t subscribe to. The more I think about it, the more I like it. It’s incredibly consumer-focused, but also focused on growing the audiences of series with niche followings. It means more revenue than On-Demand for the networks, as well as possible boosts for DVD season box sets.
What do you think, how would your iTunes habits change if the TV prices drop?
Via Buzzsugar.





