Apple pushing for lower TV episode pricing
Apple is putting pressure on U.S. television networks to lower their pricing for TV shows offered on the iTunes Store, according to a new report. Citing people close to the discussions, the Financial Times reports that Apple is suggesting that episode pricing be dropped form $2 to $1, bringing prices more in line with that of full-season DVD sets. The push is seen as part of Apple’s long-term strategy for the tablet, and help spur demand for TV shows on the iTunes Store, sales of which have “frustrated” company executives. A person familiar with the talks said Apple “is looking to change pricing dynamics. That’s what they did to the music industry. The difference between the TV industry and music is this one has good economics.” The report also states that Apple has been floating the idea of a lower-cost, $30 video subscription service, but has so far met with resistance from most of the networks.
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