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.
20 responses to “Why 99-Cent TV Downloads Could Save the Networks”
In New Zealand, we don’t get any of the TV shows from the apple store. for a dollar a show I would have no more use for a TV – a couple bucks a show is far better than commercials, and I would get to choose when i watch it. I don’t get why the networks (read NBC) seem keen to make it harder for people to pay for and watch their shows in the way they want, seems like a great leap backwards to me.
I think you nailed it on the heads – there is a different value system going on here. I would also agree a TV show should not be more than a song… a song? I listen to it all the time! I can put it on a CD, I can use it everywhere…
A TV show I buy from iTunes – I’m only going to watch it once, generally, and I can’t do jack with it (short of buying an Apple TV). I can watch it on my computer or iPhone (and I never watch anything on my iphone) and that’s it. I can’t have friends over and do a Heroes marathon unless I wanna attach my tv to my television.
The television companies absolutely have to start thinking about these things more rationally instead of living in knee-jerk reaction land all the time.
that stuffs pretty deep, the lower the price, the greater the demmand, talk about mind blowing stuff, if ony the ENTIRE WORLD ECONOMY wasnt based on the principles of supply and demand, exept of course, this time its el jobso talking so its gotta be all cool and hip and trendy its not just economics, its iecoconomics
Does anyone know when the ringtones will be available? Im tired of seeing “coming soon” on the apple web page. haha.
I would instantly subscribe to The Daily Show & Colbert Report.
Hhhmmmm, 99c TV shows….. hell I’d love it if Apple started selling TV shows in New Zealand…. all we get is Pixar Short Films….. oh yeah!
My opinion? Pete, I think you’re engaged to a very shrewd lady. ;-)
When NBC tried to play hardball with Apple, they pointed the gun at their own foot.
When Apple kicked them off of iTunes, Apple dared them to pull the trigger.
When NBC jumped to Unbox, it pulled it.
Why bother when you can get them for free. Pandora’s Box was opened years ago, and there is nothing you can do…
The networks are idiots and will never go for this. They still think all this effort invested in TV shows is just to trick us into watching 15 or 20 minutes of commercials per hour. (Free clue — we’re not watching.)
If they were smart enough to actually slash content prices on iTunes, I know I would immediately drop my cable subscription and just put that money into the shows that I actually want to watch. As it is, the cost to move my TiVo selections to iTunes would be comparable to what I actually pay for cable; the added value in possibly finding a new show or catching the occasional movie makes it worth dealing with the loathsome cable company.
I would definitely buy more TV shows if they were priced at 99 cents… as it is it has to be a show I KNOW I like, but not enough to want to own the DVD box set.