Reader Editorial: iTunes Price Changes - Beginning of the End, or Natural Evolution? | iLounge Article

Article

Reader Editorial: iTunes Price Changes - Beginning of the End, or Natural Evolution?

Because of continued reader interest in the topic of iTunes Music Store pricing, and developments on that subject today, we have created a new Reader Editorial as a discussion hub for your opinions. If you haven’t read today’s news yet, here’s a brief summary of what’s going on.

Over the last several months, Apple CEO Steve Jobs has been publicly challenged by certain record labels to alter the iTunes Music Store’s famous 99-cent-per-song, $9.99-per-album pricing scheme for music in the United States. Though Jobs has responded fiercely in public to such requests, there are signs that iTunes pricing is readying for changes behind the scenes. International iTunes Music Stores have already begun to adopt flexible pricing for single songs, numerous albums are now selling at prices other than $9.99, and premium-priced “deluxe” versions of albums with “extra” music videos and songs have been increasing steadily in number.

Today, there was a surprise twist to the announcement that certain NBC, Sci-Fi Network, and USA Network shows would be available through the iTunes Music Store: several offerings have skipped the $1.99 per show pricing announced by Jobs at the October launch of iTunes 6 and the fifth-generation iPod. Specifically, Late Night With Conan O’Brien is selling full-length programs for $9.99 each, and only providing 6 to 12 minute sketches for $1.99. Sci-Fi’s four-part Battlestar Galactica Miniseries is available only as a $15.99 “album

« Importing to WAV

iPod’s free space indicator misbehaving »

Related Stories

Comments

1

The major music industry is a grotesque example of gluttony. Forget the recent rootkit controversy- while indies lower prices on iTunes and other online vendors for (full albums to $7.99 (because they pass along the savings on manufacturing and distribution markup to the consumer), these ivory tower bozos have the nerve to want to charge MORE for popular tracks. They aren’t doing one good faith thing to help stem the tide of file sharing.

(I also like Emusic, they offer most good indie stuff for a subscription as a DRM free MP3)

I don’t mind paying $1.99 for a iPod sized n episode of a show that I may have missed or want to watch on my commute and keep for posterity. iTunes video content certainly loads faster than a bittorrent would. But the hour long Conan “special” for $9.99… nuh uh. That’s NBC gettin greedy.

If the customers don’t feel ripped off, they’ll pay for the convenience of acquiring content via iTunes. It’s unfortunate that Apple, despite their considerable marketplace oomph, can’t dictate more user friendly terms to the content providers.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 6, 2005 at 9:00 PM (CST)

1

I’m not that big of a fan of TV to want to pay 1.99 let alone 9.99 for an episode of Conan (he’s not THAT good!).  My sense is the pricing is designed to be high to enable a foot in the water approach - if it were much lower, it might open the floodgates for downloads causing consternation among NBC Universal distributor customers (cable and satellite companies).  Broadcasters and content owners must strike a balance between taking advantage and getting used to a new channel while still protecting their existing channel. 

As for me, I’m going to hold out for when content producers go direct to iTunes bypassing the cable/satellite companies enabling me to just cancel my cable service altogether and buy only what channels and better yet only those episodes I want to see - this would be nirvana. 

I would be willing to pay a slight premium for the aggregate of all the shows/episodes I want to see above and beyond my current cable service (approx $45/month).  Current 1.99 per episode pricing is far too much of a premium.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 12:01 AM (CST)

1

Well, Seeing as I live in Canada, it doesn’t really affect me. Does anybody know when (or if) Canada is going to get TV shows?

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 12:32 AM (CST)

1

This was a 90 minute Primetime special. Think of it as a movie instead of a single episode of latenight.

Typical episode of Late Night: 42 minutes without commercials
10th Anniversary Special: 60 minutes without commercials

And keep in mind, the special was a good 80% comedy bits, while a single episode of only has 20 minutes of comedy sketches.

Also another way to think of it, this is a full length release that NBC has put out on DVD (http://www.amazon.com/exec/obidos/tg/detail/-/B0002DB5NG?v=glance)...$10.99 on Amazon.

$9.99 on iTunes you’re saving. Quit overreacting people.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 1:01 AM (CST)

1

I’m in Australia where we don’t yet have TV content at the Music Store, but I agree totally with bw10009. Apple must say no to the major players in both music and TV in terms of their pricing, I’ve heard major label execs quoted as saying that offering variations of price in the iTMS is better for consumers, but this is greedy capitalist bullsh*t, one of the iTMS biggest stengths is its across the board pricing (this is breaking down even with music. In the Australian store standard album price is $16.99, but some are $17.99, I can deal with that for now).

I don’t really care so much for TV content, but if this happened to music any more than it already is, the iTMS would be no better than any bricks and mortar chain store, where you ignore the populist major label overpriced stuff and hunt for bargains or specials.

bw10009 is also right in describing this stategy as gluttony, because it’s the major labels, those who make the most money, who have the highest prices. Indie labels generally keep their prices lower, which lowers their profit margins, but rewards the consumer for buying the music and ensures that more music is bought than shared.

If the music industry as a whole wants to wean people off illegal file sharing, they need to quit their greedy practices and offer fair and consistent pricing. The iTMS was revolutionary and became so popular because it did this in the US when it opened in 2003. Don’t screw it up Apple.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 1:21 AM (CST)

1

Didn’t anyone notice that the higher-priced content is more than simple episodes. For example, as Edixonki was saying, this is a Conan 10th Anniversary special, not an everyday episode. Plus, Apple has to appease the networks by not cannibalizing sales of their DVD products. Battlestar Galactica is a good example of this: the miniseries, on DVD, would cost around $20 - $30, right? So they priced it accordingly, almost in a way saying, “Pay a little more for the DVD if you want the quality, but keep the download option in mind.” If given a choice between a $16 download and a $25 DVD, I’d have a tough choice on my hands, which is just what the networks want. But make it a choice between a $1.99 download and a $25 DVD, and I’ll take the download, no matter what the quality. Apple probably negotiated long and hard on the price points before the networks felt satisfied.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 10:26 AM (CST)

1

I usually have classes on Wed nights and I don’t own a VCR or Tivo. So I use my ipod video to download my favorite TV series “LOST” episode that is usually available the next day after it gets aired @ ABC. $1.99 per episode is not bad as I can watch it anytime and without commercial and can replay it anytime. I simply love this feature from iTunes.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 11:43 AM (CST)

1

i like this because i dont get htese shows here, and i have the dock and S-VHS cables to watch it on TV so i am 110% Satisfieds from this, and as mentioned before, it makes sences that a 60 min. special wouild be ten bucks

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 1:38 PM (CST)

1

TheEye, you can afford iPod video, but not a VCR player, which costs much much less???

I do agree with you though about how nice it is to have commercial free episodes of Lost.  I do not have iPod video, but I did buy season 2 episodes to ‘catch up’ with the series (I bought season 1 on DVD set, then season 2’s 8 episodes…then watch tv from then onward).  :)

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 1:55 PM (CST)

1

$1.99 for a full length TV episode for LOST isn’t bad. A little more then I would like to pay, but I’ll deal with it. I do refuse to pay $1.99 for a 2-5 minute video though. That is way too much for the short content. $.99 for music videos would be better. There is no way I will pay $9.99 for a TV Special. As posted above, you can by the DVD for $1 more. I would be more inclined to buy the DVD at the store then buy it through iTunes. It would give much clearer detail and better 5.1 sound options. I could then make my own conversion for my vPod.

Apple, NBC, ABC, Etc…should be paying attention to this thread and lower their prices on content or lose what customers they think they might have. Lowering the prices will allow, and make, more people interested in downloading the content. The providers would make more money on selling shear volume of sales then they would on selling less at higher prices.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 2:51 PM (CST)

1

It’s definitely too expensive.  I am the prime target for the new video initative—I don’t have cable because I only want to watch maybe three programs per week, and it wasn’t cost effective.  However, at $1.99 per half hour for lower-than-broadcast-res video, it’s still not cost effective.  It’s obvious that’s a real introductory, test the water kind of price, the kind that will make the executives signing on to these kinds of deals less worried about the perceived risk of putting shittier-than-DVD, watermarked and compressed video into the hands of consumers.  It is not the price that will solve the problem of 430,000 downloads of Battlestar Galactica, or of falling advertising revenues, or of cancelling brilliant, acclaimed shows people want to see just because they can’t stand up to the audience of football.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 3:04 PM (CST)

1

I find $1.99 for a five minute sketch a little excessive.  Conan O’Brien is very funny but it is not worth it.  I would rather spend the two dollars for an entire episode of something else (Lost, Monk, etc…).  Until they provide them at a reasonable price, I know I won’t be purchasing them. 

Others may disagree, but that is my opinion.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 4:10 PM (CST)

1

An absolute rip-off in my opinion. And if TiVo manages to successfully implement TiVoToGo transfers for the video iPod, it’s completely useless. I was already especially not fond of the idea of paying $1.99 for a 4 minute music video that was FREE just a few months ago. Music videos have always been advertisements and marketing tools for records companies to sell CDs and now all of the sudden they’re a revenue stream? WTF? $1.99 for a Lost episode might be worth it if I missed it and I’m desperate, but in that case, half hour shows ought to be $0.99 and a 6 minute skit should be $0.25! Yuck. I don’t need videos on my iPod that badly; I’ll add my own clips from my DVD collection and download stuff from free sites out there. iTunes and NBC can go eat it.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 7, 2005 at 5:18 PM (CST)

1

Living in Sweden, downloads of TV shows have yet to come. While I think that $1.99 might be OK for the latest episode of some hot TV series, one should be very careful when deciding on a pricing policy for other video content. This product would often compete not only with DVDs but also DVD rental. One should also consider that many DVDs have a substantial second-hand value. When you have finished watching a TV series season on DVD you may sell it and typically get back at least half the money paid.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 8, 2005 at 4:30 AM (CST)

1

I think that $1.99 for an episode of Dragnet, Adam 12 or Hitchcock is just fine. I loved them as a kid and now they are even better.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 9, 2005 at 12:42 AM (CST)

1

The iTunes prices are too high. The iPod Video is a novelty, and I suspect that’s why video sales have been so high; it will be interesting to see what happens over time.

For me, there is quite a difference between the value of a music download and the value of a video download. I have many, many songs on my iPod that I will never tire of hearing. But really, even if I were willing to pay $1.99 for an episode of “Lost”—which I’m not—how many times would I want to watch it?

I purchased one music video from iTunes just to see how it would look and sound on my iPod. Looks and sounds great, but I’ve only watched it twice over the past several weeks and may never watch it again. Doesn’t seem worth the $1.99.

Video content will have to become much more diverse and pocket-friendly before I start parting with my hard-earned $$$.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 9, 2005 at 11:00 AM (CST)

1

I would pay 99¢ however the current pricing scheme of $2.29 in Canada disgusts me.  Especially when the enjoyment I get from an episode of TV will last only one viewing of that show, I will likely never revisit it and watch it again.

Iggy :(

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 9, 2005 at 9:11 PM (CST)

1

I feels that this is just showing every one the real face of the record cumpenies - the greedyness will bring them to there doom - and ppl we’ll go back to file share…

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 10, 2005 at 3:48 AM (CST)

1

I don’t have a iPod photo, and I’m still rather amazed that anyone would pay for free TV.  I mean Lost/Conan all come on TV over the air. 

Why pay?  I don’t watch alot of TV, but 90 hours a year seems reasonable.  I could see paying for cable TV content, like Te Sopranos, 6ft Under or Battlestar Galactica, but free TV…?

  I assume everyone has a TV already.  After 90 $2 shows, you can have a DVD Recorder or a dying breed of VCR.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 10, 2005 at 11:42 AM (CST)

1

I have bought each of the LOST episodes from season 2 as they have aired.  I have even bought 1 or 2 music videos.  I was interested in purchasing some of the NBC content, but the pricing is not in line with what I believe it is worth.  At $9.99 for an episode of Conan, iTunes should at least provide a service like Audible.com where I can log in and re-download any content I have legally paid for.  Even then, I don’t believe the price is worth it for a lot of this content.  I pay for DirecTV and can record most of this content for free onto my Tivo, copy it to my computer and convert it to my iPod format.  $1.99 per episode was worth it for the convenience.  $1.99 for a 10 minute sketch is not.  $9.99 for a one-hour TV is definitely not.  The video content providers need to wise up or they will go the way of the record companies and users will stop purchasing their products.

Posted by Jeremy Horwitz in East Amherst, NY, USA on December 10, 2005 at 11:43 AM (CST)

Sign up for the iLounge Weekly Newsletter

Email:

Recent News

Recent Reviews

Recent Articles

Sign up for the iLounge Weekly Newsletter

Email:

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2015 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy