Crazy Stevie’s–Our Prices Are iNsane
by John Paczkowski
Posted on September 7, 2007 at 12:49 PM PT
How much is a TV-show download worth? In Apple’s estimation, about 99 cents each. Citing “three people familiar with the proposal,” Variety reports that the company has told Hollywood it would like to halve the price of TV shows sold through iTunes. Apple’s argument: the volume increase in sales created by such a price cut will more than compensate for its feared impact.
As one might imagine, the networks are balking at Apple’s proposal, and Variety notes that it may have played a role in the company’s recent spat with NBC Universal. Which isn’t all that surprising, given NBCU’s contention that lowering prices on iTunes works primarily to Apple’s benefit. As NBC Universal said in a statement last week, “It is clear that Apple’s retail pricing strategy for its iTunes service is designed to drive sales of Apple devices, at the expense of those who create the content that makes these devices worth buying.”
