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Apple to Test Half-price TV Shows on iTunes

Apple to Test Half-price TV Shows on iTunes

Posted February 11, 2010 at 9:45am by iClarified · 4429 views
Apple will begin test selling TV Shows for the half-price starting in April, according to the Financial Times.

Timed to coincide with the consumer debut of the iPad, US television shows will cost $1, down from the current price of $1.99. Apple is hoping the reduced cost of video programming will ignite sales.

Some television networks agreed to the lower prices after months of negotiations, and having initially resisted Apple’s push. Media executives are under pressure from declining DVD sales and cut-rate rental services such as Redbox, that offer rental DVDs for $1.

It's not clear which or how many networks have agreed to the lower pricing. Some networks say they have not been approached with the new prices.

“If you move five times the volume [of sales] at half the price, it’s a good idea,” one digital media strategist at a big US media conglomerate said. “The argument for holding the line gets bad quickly.”

“It’s a good time to do it,” another senior media executive said.

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Apple to Test Half-price TV Shows on iTunes
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