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TV Networks Not Keen on Apple's $0.99 Rentals

When Steve Jobs showcased the new iPod products and the revamped Apple TV, some of us were excited over the promise of $0.99 TV show rentals. Walt Disney Co.'s ABC and News Corp's Fox were listed to bring their popular shows to the table including "Glee" and "Modern Family." However apparently other networks are reportedly not too keen on the $0.99 idea.

According to several media executives, Apple's terms are somewhat of a turn-off, demanding 30-percent of the rental fee. Currently consumers can download episodes for $1.99 and $2.99, a far better profit networks are unwilling to relinquish.

One executive said Steve Jobs believes that networks will "sell more stuff" if the price point is lowered. "This is a plan that is designed to sell iPads, iPods and iPhones," another executive reportedly said. "It is not a plan that is designed to appropriately value content."

Media companies fear that they will suffer the same fate as the music industry, struggling to cope with declining price points. There are also fears that the "episodic pay-per-view model" will further undermine DVD sales--currently the industry is making a huge profit off boxed sets of individual TV show seasons.

Bottom line, networks may fear that the iTunes consumer who previously bought TV episodes to watch only once may be inclined to merely rent the show. That's less money in the network's pocket, especially if Apple is demanding 30-percent of the rental fee.

  • mayne92
    So Apple will take the blame instead of blaming "piracy"? lol
    Reply
  • orionantares
    I wonder what percentage Amazon is taking for their 99 cent VOD episodes?
    Reply
  • cadder
    Aren't we talking about TV shows that you can normally watch on the net for FREE?
    Reply
  • jakmove
    So paying 99c an episode that you keep for 2 weeks, (and if you really want to watch it again, will cost you another 99c) is better than charging a one time fee of 1.99?

    If people are going to watch it only once, wouldn't they DVR the first time it's on, and I don't know, save it from being deleted? Also, hulu is a free service that people can watch anytime, yeah, you have to sit through commercials, but they only last 15 seconds (from what i remember) and happen every 15 min.
    Reply
  • toxxel
    Why pay for something you can get for free anyways, talking about major network broadcasts that are received over the air. I would think more people would be inclined to renting shows being 99 cents over buying, costing twice the price or more.

    I guess some of the major conglomerates aren't ready for change because it may possibly find less money lining their pockets.
    Reply
  • I have not seen anything on these shows by the networks that warrant all these gadgets and devices. Who in there right minds would want to spend $0.99 or any amount attempting to keep track of content that is mindless, boring and highlights actors who should have choosen another vocation?
    Reply
  • kezix_69
    TV Box sets have always been horrendously overpriced... To use that as a basis for the kind of profits they should be making is just insane. If they cut those box sets to be about 1/4th their price they would probably sell 10 times more of them. I like this attitude and it's a shame Apple and other companies don't see the benefit of pricing things like this.

    The gaming companies could learn something from this too.....
    Reply
  • kezix_69
    I meant to say "it's a shame Apple and other companies don't see the benefit of pricing things like this more often."
    Reply
  • korsen
    Yeah because I totally want to pay dozens of dollars each month, for channels I don't want, pay for the advertisements in the show that they already got paid for, and then pay them some more for a DVR that fast forwards through the commercials that they already got paid for that you are paying for that you don't watch. Great idea, it's worked so far - why change it? /sarcasm
    Reply
  • pharge
    cadderAren't we talking about TV shows that you can normally watch on the net for FREE?
    Not really free, if you are the person think time is money...
    These streaming TV shows are Ad free (if Apple does not put its own iAd in there).
    Reply