Warner Bros. skeptical of Apple’s TV rental plan
Speaking at the Bank of America/Merrill Lynch 2010 Media, Communications & Entertainment Conference, Warner Bros. Entertainment Chairman Barry Meyer expressed doubts about Apple’s plan to rent HD TV shows through the iTunes Store for $0.99 per episode, according to a Los Angeles Times report. “We just don’t think the value proposition is a good one for us,” Meyer told analyst Jessica Reif in an interview. He added that the company would rather license whole seasons of shows than “open up a rental business in television at a low price.” Meyer is reportedly worried that rentals at such a low price could undermine the long-term value of Warner Bros. shows, despite the fact that DVD sales of shows have not yet harmed the market value of rerun licenses. Both CBS and NBC Universal are also for now staying clear of Apple’s rental service, although neither has yet to comment publicly on their reasoning.
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