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Apple Considering $1 TV Show Downloads

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)

8 Responses to “Apple Considering $1 TV Show Downloads”

  1. Member [Join Now]
    lohertz

    Well no sh*t.
    “If you move five times the volume [of sales] at half the price, it’s a good idea. ”

    Hey dumb a**! Its digital content. That’s the point, there are no mediums to manufacture.

    …as long as your not forking over $1 to the greedy movie studios.

  2. Visitor [Join Now]
    Wesley [visitor]

    …but, if you cut the price in half and gain 50% more downloads, you just lost money. That’s how these initial-cost-only products work. There’s a correct price to make the biggest profit and – currently – nobody knows what it is.

    Mostly because they refuse to lower the price for some reason. Kudos to Apple for doing so now.

    That said, $1/episode is about right (but still too much because of Hulu) for me. Assuming you want to pay, say, $30/month to replace basic cable, that’s 1 episode a day. Most shows do 3-4 episodes a month, so that’s 7-10 series you can watch. That’s pretty generous.

    Of course, if you’re a “tv on in the background” kind of person, this is horrible. But that’s why Cable is still an option.

  3. Visitor [Join Now]
    Rojas [visitor]

    You can also go to the networks website and watch all the shows you want
    in HD for FREE……

    Fox.com
    NBC.com and so on.

    • Member [Join Now]
      amtj03

      That is good, maybe amazon will follow suit. I do not know any one who wants to sit at the their desktop or laptop all day and watch content. Itunes and amazon on demand are compatible with many devices, so you could watch said content on your TV. Certain shows, like the ones showed on premium channels, are not available on the website. Fox and NBC keep their content up for a short period of time. What if you work and cant watch the program in that timely manner? I would gladly pay $1 or $30 to watch a variety of programs.

  4. Visitor [Join Now]
    andyg8180 [visitor]

    I would do it if Amazon did it… $1 for SD, $2 for HD… i mean c’mon… they already got paid by advertisers to air the crap on TV… So now, instead of paying a manufacturer to make DVD covers and cases, spending money on artwork, inserts blah blah blah, you deliver just the video content… I’d be all over it for cable shows not on Hulu like Dexter and Weeds…

  5. Visitor [Join Now]
    Rachel [visitor]

    I would pay $1 per episode for Dexter definitely. Also, shows that are currently running are only on Hulu for so long. Plus, older shows aren’t all on. For example, Married with Children has maybe 6 episodes from one season. The rest are unavailable unless you buy the DVDs.
    I think it is a great idea.

  6. Visitor [Join Now]
    Large Plastic Storage Boxes [visitor]

    Can you provide more information on this? greets

  7. Visitor [Join Now]
    Cody Pride [visitor]

    Hi,season 4 has ended strange because Rita is dead and I’m waiting for season 5.I think season 5 will be the best of the seasons.