With Multi-Pass, Apple has once again turned the mobile content market on its head

“Look out, bears: Apple has once again turned the mobile content market on its head. Thank Jon Stewart and Stephen Colbert; fans of Comedy Central’s late-night dynamic duo are being given the option to subscribe to downloads of The Daily Show with Jon Stewart or The Colbert Report for $9.99 though the iTunes online store [Multi-Pass]. The fee covers a month’s worth of shows, or 16 episodes. (Single viewings will also be sold for the usual $1.99 per-video price tag.) The move marks Apple’s first foray into the subscription model for digital downloading, a strategy which has been common among competitors such as Napster and RealNetworks’ Rhapsody. However, unlike those services, where you effectively rent the music, customers own the episodes of The Daily Show that they download via iTunes,” Tim Beyers writes for The Motley Fool.

“With this deal, the growing iTunes video library, and the emergence of media-savvy PCs like the Mac mini, it’s becoming increasingly clear that consumers will someday be able to forgo traditional TV altogether, downloading only what they want, and replaying it commercial-free,” Beyers writes. “Comedy Central’s new deal with Apple has the potential to alter the economics of mobile content, again. And that can mean only one thing: Disney, CBS, NBC, News Corp., and, well, every other content provider on the planet, might also find themselves on notice.”

Full article here.

Advertisements:
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.

Related articles:
Apple iTunes music and video store takes first step toward subscription model – March 08, 2006
Comedy Central’s iTunes Music Store press release – March 08, 2006
Apple adds Comedy Central’s ‘The Daily Show,’ ‘The Colbert Report’ to iTunes with Multi-Pass option – March 08, 2006
Who would have thought that a computer company would change the face of TV? – November 11, 2005
NBC, CBS ‘shows on demand for 99 cents’ plans laughable compared to Apple iTunes+iPod – November 08, 2005
Apple’s iTunes Music Store sells over one million videos in under 20 days – October 31, 2005
Can Apple’s iTunes Store resurrect old time TV? – October 30, 2005
Has Apple’s Steve Jobs saved network television or simply helped hasten its death? – October 27, 2005
TV network presidents see no threat from Apple video iTunes+iPod – October 27, 2005
BusinessWeek: Apple iPod+iTunes video marks new era for digital media – October 27, 2005
TV Critic: Apple iPod video strikingly bright, crisp, very fluid; TV will have to reorient itself – October 27, 2005
CBS News: New iPod shows ‘Apple will continue to dominate portable digital media player market’ – October 21, 2005
Apple’s video-capable iPod and iTunes are first vital link in new distribution paradigm – October 21, 2005
The Motley Fool: ‘Apple’s new video-enabled iPod is about to save the televised content industry’ – October 20, 2005
NY Times Pogue: ‘watching video on new iPod’s 2.5-inch screen is completely immersive’ – October 19, 2005
Apple’s $1.99 iTunes TV show downloads may be ‘the savior of good television’ – October 17, 2005
Apple opens Pandora’s box for the media business, could have profound long-term consequences – October 17, 2005
BofA analyst: Apple video play an ‘evolutionary opportunity,’ 9.3m iPods to be sold this quarter – October 17, 2005
Apple has the potential to change not just the audio industry, but the whole entertainment industry – October 17, 2005
Advertisers welcome Apple’s iTunes Store commerical-free content – October 17, 2005
New York Times writer can’t think different: ‘video iPod may not be ready for prime time’ – October 17, 2005
Cringely on Apple video experiment, future 802.11n Apple Video Express, Sony TVs in Apple stores – October 14, 2005
Podfather: iPod porn is going to be huge – October 14, 2005
Forrester Research: Apple transformed music distribution, now it is doing the same for video – October 14, 2005
Watching episode of ABC’s ‘Lost’ on 2.5-inch iPod screen surprisingly compelling – October 13, 2005
Get ready for the iPod video torrent search sites – October 13, 2005
Apple’s new iMac G5, iTunes 6, iPod video designed to bait Hollywood – October 13, 2005
Apple video iPod+iTunes could create mass audience for video on the go, despite studios’ misgivings – October 13, 2005
Using QuickTime Pro to create videos for playback in new Apple iPods – October 13, 2005
Analyst: Apple has just produced ‘the tipping point’ for entertainment content – October 13, 2005
Apple’s video play likely to unsettle movie, TV, advertising and retail markets for years to come – October 12, 2005
Apple unveils new 5th generation iPod, now plays music, photos, and video – October 12, 2005

35 Comments

  1. I’m still failing to see how this is a “foray into the subscription model”. This is a pre-order/bulk discount, you still own the episode after the month is up, even if you don’t buy the following month.

    The current “digital subscription model” used by Napster and others is a “never-never” plan, where you never stop paying, and you never own the download.

  2. Eddy – Whether I subscribe to a magazine for 3 months, 1 year or more years I get to keep the magazine. And I can cancel it anytime I want.

    This is a one month subscription for a particular program.
    Apple is market testing to see how it works out.
    Watch for other subscription ideas to come from them.

  3. It is Napster and others that have twisted the idea of a subscription. What the others have is a rental/leasing scheme.

    Somehow I think Disney will get on board with the multi-pass pretty quickly.

  4. They just fail to see that you have to pay two or three times for a song on Napster to actually OWN it and even with the multipass Apple only charges you ONCE. They make it cheaper instead of a lot more expensive to get what you want on-the-go and on cd…

  5. It sounds good, but has anybody else had a problem with the shows updating? I bought the pass for The Daily Show, and have only gotten one episode so far. I did, in fact, purchase the pass, not just one episode. I have the documentation. And I contacted Apple.. but I haven’t gotten a response yet. So.. just wondering.. anybody else having the same problem?

  6. i agree with iSteve.

    Its comparable to a subscription for a magazine: pay up front, get a better deal, keep it. napster, etc are more similar to renting, but even that doesn’t fit. Its like getting pass to visit several theme parks or something. the other ones are more of a “pass” while this is more of a subscription. whatever. $10. daily show. no problem.

  7. Jason, try “Check for New Purchases” under the Advanced menu, or go to the apple forums. I’ve had problems with that before, but its worked fine with the Daily show.

  8. I don’t see this as a subcription like the others because you are actually buying the videos as opposed to renting them. It’s more like buy all and get it at half price rather than a subcription.

  9. Let’s call this a subscription because it’s like subscriptions used to be.

    Let’s call the Napster thing rent. Then it becomes more obvious how little you get by renting.

    Let’s take the word subscription back!

  10. The problem with Napster and the like is that customers don’t like to be reminded that they are renting content, that’s why Napster have had to adopt a different word – subscription. Blockbuster are happy to rent you a movie and use the ‘R’ word, but Napster don’t want you to realise that you are renting their music.

    As others have pointed out, Apple is using the word in the same manner as magazine subscriptions have been for many years. You pay in advance, get each copy when it’s produced and they’re yours to keep, even if you stop subscribing.

    Napster have created a tiny bit of confusion because they can’t admit what their service really is, but it’s only going to be a temporary problem. How long can Napster continue flushing money away at that rate ? When they finally cease trading, the word can revert to it’s proper meaning.

  11. “It sounds good, but has anybody else had a problem with the shows updating? I bought the pass for The Daily Show, and have only gotten one episode so far”

    Jason,

    Just checked the music store and all three NEW episodes of The Daily Show are up. That is all the NEW shows since the multi-pass started. Mondays show was a rerun since Jon was still hung over fromn the Oscars.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.