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Sun, Nov 08, 2009 - 08:48 AM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Apple now more amenable to flexible TV Show pricing on iTunes Store?
Wednesday, May 28, 2008 - 11:30 AM EST

"This month, HBO joined the Internet's most successful content store with three series including 'The Sopranos' meriting $2.99 per episode -- the first deviation Apple has made from its standard $1.99 price for TV episodes," Andrew Wallenstein reports for The Hollywood Reporter.

"But the move was all the more surprising given that NBC Universal withdrew all of its TV programming from iTunes six months ago after Apple refused to grant variable pricing, among other issues," Wallenstein reports. "Thus we are left with a question: Is HBO the exception to the rule on iTunes, or is Apple changing the rule?"

MacDailyNews Note: HBO is a pay cable service. HBO shows run ad-free. NBC is an ad-supported TV network.

Wallenstein continues, "With its usual Kremlinesque approach to public relations, Apple isn't explaining the change. But sources at several major studios who spoke on condition of anonymity, citing the sensitive nature of negotiations, say Apple has changed its tune on iTunes."

"Long before HBO nabbed $2.99 pricing, programming providers say they have been hammering Apple to obtain not only increases but also lower price points than $1.99 -- as low as 33 cents. More than one studio has been aggressively asking for TV shows to be structured like films on iTunes, which offers new releases and catalog titles at separate price points," Wallenstein reports. "'The conversations I've had with them over the last quarter are markedly different than they were a year or two ago,' one content chieftain says. 'Apple is much more flexible than people presume.'"

Wallenstein reports, "That presumption also might have been unfair to begin with, given that sources also suggest that it wasn't Apple but NBC Universal that was being stubborn in their previous negotiation stalemate. Not only was the studio pushing to test a $4.99 price point -- suddenly, 'Sopranos' doesn't seem that expensive -- but it also wanted to institute dynamic pricing, an experimental new technology that recalibrates price based on consumer demand. NBC Universal declined comment on dynamic pricing, which is being tested by Warner Music Group."

More in the full article here.


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May 28, 08 - 10:37 am Comment from: shen

$.33 for really old shows? makes sense.

$2.99 for new? i am out.

$4.99?!? hey NBC, as the VP says, go $&%$ yourself!

May 28, 08 - 10:41 am Comment from: Macromancer

I'll not pay more than a couple bucks. At 2 dollars it's an impulse buy, at 4 dollars it's a gallon of gas.

May 28, 08 - 10:43 am Comment from: chuy

I read somewhere that variable pricing in HBO is mainly used to offset difference in length in content, I did not verify, but it seems fair, not all TV programming is the same length.

May 28, 08 - 10:45 am Comment from: Paul Zune's Bone Machine

Better to check them out of the library, fire up Handbrake, and let er rip.

May 28, 08 - 10:51 am Comment from: derelict

It all has to do with production value. HBO spends the same amount of money per hour on their TV series' as do major studios on major movies, only their 30 hour movies (split into shows). If you buy their season's on DVD, their quite expensive. Think of how much it costs to produce something like the Wire, whose cast is simply massive. Makes sense to me, of course, I just subscribe to HBO, and get it on demand, which is probably the best value.

May 28, 08 - 10:53 am Comment from: derelict

Re: Bone machine.....While I am not a proponent of DRM, you are the reason for all the fuss. Don't be a cheap dick and pay for your content.

May 28, 08 - 10:54 am Comment from: Tired of Retards

derelict,

Why don't you learn the differences between "there," "their," and "they're" and then come back and try again.

Nobody with half a brain wants to slog through your half-assed sentences trying to figure out just what the fsck you're trying to say, you retard.

May 28, 08 - 11:00 am Comment from: Ampar

"At 2 dollars it's an impulse buy, at 4 dollars it's a gallon of gas."

At 20 bucks it's a quick stop in the alley, at 400 dollars it's a party with Charlie Sheen.

May 28, 08 - 11:02 am Comment from: Derelict

I'm sorry you're too slow to have gotten my meaning.....or is it that you have such a sad, boring life that you have nothing better to do than correct grammar and insult people on comment blogs?

May 28, 08 - 11:11 am Comment from: @ Tired of Retards

You obviously feel superior with regards to Language Arts. Unfortunately, your behavior only proves that you failed to learn the basic skills of Elementary School. Your Language Arts degree means nothing in the real world. In case you haven’t noticed, the most important thing in life is getting along and working with others.

Feel free to leave and never come back.

Have a great day!

May 28, 08 - 11:14 am Comment from: derelict

I guess it was the latter.

May 28, 08 - 11:14 am Comment from: ChrisM

MDN, why do I care if HBO is a pay cable service? I'm paying for a video with no commercials in either case. Why do I care if the companies revenue comes from subscribers or advertisers?

Derelict, Lost has a cast and budget on par with large Soprano or Wire type HBO shows, so should I pay more for those episodes too?

May 28, 08 - 11:18 am Comment from: Cowboy

2.99 is too much. I'd rather buy the DVD set or use Netflix. What I really want is to rent it, give me a week to watch it, and then delete it. I wouldn't even mind a couple of commercials. Under this scenario, shows should shouldn't cost more than .$99.

May 28, 08 - 11:23 am Comment from: John C. Randolph

I don't think the issue with NBC was the price per show, it was their insistence of bundling. Apple wasn't going to go along with NBCs plan where to get the show you want, you'd have to also by whatever crap they were trying to promote.

-jcr

May 28, 08 - 11:31 am Comment from: bizlaw

@MDN:

It doesn't matter that HBO is a premium cable service and their shows are paid for by subscribers, or that NBC's shows are paid for by advertisers. The downloads from iTunes are commercial-free, so what's the point, MDN?

Also, Apple has always had flexible/variable pricing. Look at whole album costs on iTunes. Older albums can cost as little as $6.99, while others may cost $12.99 or more.

This is where Apple could have a nice option plan. Bundle entire seasons of a show together for a nice, low rate compared to the per episode price. That would help sell more downloads, more episodes, and keep people coming back.

May 28, 08 - 11:34 am Comment from: Predrag

While I myself often cringe at poor language, grammar and spelling on these forums, I cringe even more at those who swiftly insult those language offenders. General consensus is that manners are taught at home and proper language in school.

At the risk of making a broad generalisation, most language offenders here ironically tend to be from the US. Their transgressions aren't, for the most part, caused by their poor spelling skill (we all use Safari, don't we?); it is just conscious disregard for proper language, for the sake of expediency (I'm not sure which of the two is worse; poor skill or conscious disregard). The insultors (insulters? is there such a noun?), however, tend to come from anywhere, not just the US. While language offenders can use the (lame) excuse of purposeful lack of effort, there is no valid excuse for those who use broadside insults.

Derelict would probably be more convincing and sound much more authoritative if he took an extra second to think before writing/spelling; 'Tired of Retards' could probably do better just not to post at all, unless he has something valuable to say on the subject of the article.

May 28, 08 - 11:41 am Comment from: Missy Pants

I fear Andrew Wallenstein is another unskilled writer with compensation issues because he stuffs the superfluous term, "price point" into his sentences instead of simply typing the word, "price". What next, Andrew? "Irregardless"? "Ironical"? Are you going to use the word, "Innovation" in the same sentence as the name, "Microsoft"?...

Tip: "On Writing Well: The Classic Guide to Writing Nonfiction", by William Zinsser

May 28, 08 - 11:41 am Comment from: Macaday

Ah, you guys that moan about the price of gas. I wish I had your problem - here in the UK I'm paying more than NINE $'s per gallon.

May 28, 08 - 11:45 am Comment from: DRM sucks

Apple should hold the line here. I would not mind a couple of tiers, but you can guess that if the content providers had their way, new episodes would be astronomically priced initially. The only stuff that would be $0.33 would be 70's sitcoms that you can get for free in Comcast On Demand.

May 28, 08 - 11:47 am Comment from: qka

Kremlinesque

Love it!!!

May 28, 08 - 11:48 am Comment from: Retard has left the building

Sorry

Tired of Retards has left the building.

Let's all enjoy our moment of silence.

Isn't it nice to be able to converse without having to watch our P's and Q's.

In case your wondering spelling doesn't matter as long as the first and last letters are in the correct order most people with an average IQ can understand what is being said.

Cheers

May 28, 08 - 11:54 am Comment from: TheConfuzed1

For a song hat I will enjoy over and over, $.99 makes sense. For a tv episode that I will watch once, even $1.99 seems a bit high, but it is still an impulse purchase.

For prices to go higher than that makes Bit Torrent more attractive than it already is.

May 28, 08 - 12:05 pm Comment from: HMCIV

I won't by shows for more than $1.99 based in principle. I also won't be buying any $.33 cent shows like Flash Gordon. I have better things to do with my time like microwave my head or install Vista on my iPod.

May 28, 08 - 12:30 pm Comment from: BSOD

What bothers me more than these new high prices is that Apple removes all reviews on iTunes that criticize these prices. I reviewed the show "Rome" and mentioned at the end of the review that as much as I liked the show, I did not see the need for such a high price. My review lasted 24 hours, yet in that time it had the majority of positive votes.

If you look carefully at the HBO reviews on iTunes, you will notice that all of the reviews that speak positively of the price, and criticize those who criticize the price, are left alone. I wish that someone in the press would pick up on this and take Apple to task for it.

I for one was a huge fan of the iTunes store. But now I fear that the consumer is becoming secondary to corporations, such as HBO. Apple should leave the price structure alone and let the customer base build. As the base builds, corporations like NBC and HBO will have no choice but to move over to iTunes.

May 28, 08 - 12:42 pm Comment from: BSOD

@derelict

The problem is that I already paid HBO once to watch those shows. I paid them indirectly through DirecTV. Now I have to pay them a premium price to view them again?

Also, HBO prematurely canceled "Deadwood", "Rome", and other shows. Now they want to charge a premium to watch and incomplete storyline. Wanting Premium pricing for a complete story, like "The Sopranos" I can understand.

May 28, 08 - 01:06 pm Comment from: School Marm

@Retard has left the building—

It's Ps and Qs... .

May 28, 08 - 01:58 pm Comment from: @ School Marm

It appears that it can be Ps and Qs or P's and Q's.

Check out Merriam Webster's online dictionary.

Sometimes what is accepted as correct isn't always right.

http://www.merriam-webster.com/dictionary

wink

May 28, 08 - 02:00 pm Comment from: Missy Pants

@Retard has left the building
Spelling is only important if you want to communicate what you THINK you're communicating. If that's not the case, then I reckon spelling is merely a bourgeois construct with which to oppress the ignorant masses, eh.
So throe spelling and grammer out the windoe, beecuz it duzunt matter weather its write or knot. Sea? Your rite.

May 28, 08 - 02:09 pm Comment from: Bluefin

Ampar...

Uhm... given the option... lesse,
$4 really isn't worth it.
$20 for the alley. Nope

I'll take the $400 party. Gotta be some laughs in there somewhere?

May 28, 08 - 02:12 pm Comment from: nobodi

"Long before HBO nabbed $2.99 pricing, programming providers say they have been hammering Apple to obtain not only increases but also lower price points than $1.99 -- as low as 33 cents."

I'm sure they have. When I read this I nearly snorted pop out my nose. If anyone really believes that a studio is willing to sell a show for as little as 33 cents, I have a bridge to sell you.

"More than one studio has been aggressively asking for TV shows to be structured like films on iTunes, which offers new releases and catalog titles at separate price points."

Hmm... no. iTunes does not do that. Clearly this guy does not know what he is writing about.

May 28, 08 - 02:12 pm Comment from: @ Missy Pants

I agree that spelling and grammar are important. My problem is with people who elevate themselves above others for trivial matters. One or two misspelled words shouldn’t change the fact that people are entitled to express their opinions.

My second comment was a well known fact that people can get the meaning of a sentence even if it is grossly misspelled as long as the first and last letters are in the correct place.

Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn’t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh?

May 28, 08 - 02:28 pm Comment from: Cubert

Hasn't anyone ever thought it was fishy that NBC withdrew their programs and they have a close relationship with Mafia$oft?

May 28, 08 - 04:02 pm Comment from: Ampar

Bluefin: "I'll take the $400 party."

Just make sure you don't end up in the little black book with all of those judges, clergy and politicians.

May 28, 08 - 06:07 pm Comment from: FeelingGood

@ Missy Pants

Fascinating. And very effective way to make your point.


@ Tired of Retards

Just one word: Colonic.

May 28, 08 - 11:47 pm Comment from: Open Smack

Funny how you fucknuts go off on a tangent about spelling and grammar. Why don't you get back on topic about the "price point", or do your really care?

May 29, 08 - 05:55 am Comment from: Nerd Beautiful

You're all wrong -- including MDN. These shows cost more because of their adult content. It is to dissuade kids from buying episode one of Rome only to find a teenager walking in on his mom in a full frontal nudity shot. Et. Al.

May 29, 08 - 01:09 pm Comment from: @MacMaster

ChrisM

MDN, why do I care if HBO is a pay cable service?


It matters because an hour long show on HBO is an hour long. You get more for your money. A typical regular broadcast show is what? 40 minutes out of an hour ? HBOs product is simply superior. They feel that justifies the price increase.

If the other networks think this is unfair, they can start producing shows with an hour of content and forgo commercials.

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