The Financial Times is reporting that Apple may soon be slashing its pricing on TV show downloads in half. The purported move would coincide with the upcoming retail launch of Apple’s iPad device in April. According to sources consulted by the Times, the test will assess whether cheaper video downloads will lift sales in the face of delining DVD purchases and competition from Redbox.
The number of shows that will be available at the reducing pricing is not yet known, nor are the names of the studios that will be participating in the test. The move is alleged to center around the $1.99 standard-definition shows offered by the iTunes store rather than the costlier HD alternatives.
According to a digital media strategist consulted by the Times:
“If you move five times the volume [of sales] at half the price, it’s a good idea. . . The argument for holding the line gets bad quickly.”
Apple is also reported to remain in discussions with potential partners regarding the creation of a $30 per month “best of TV” subscription service.
Would a price drop to $1 per show encourage you to download more from the iTunes store, Insiders? $1 has certainly proved to be a sweet spot for DVD rentals—would the same thing apply here?
(via The Financial Times)