Apple 'desperate' for iPad content?

Networks are wary of Apple's push to lower TV prices at the iTunes Store, say sources for the New York Times. Multiple reports have revealed that Apple would like standard-definition episodes to cost just 99 cents, rather than the current $1.99. iTunes video sales have always lagged well behind those of music, in part because they can collectively cost as much or more than a DVD or Blu-ray box set while suffering more limitations.

CBS has stated that it will allow some shows to be sold for 99 cents, but Apple's campaign is said to be meeting resistance from TV networks in general. Modern TV production is expensive, they note, which would pose a problem if videos were underpriced. Cheaper iTunes videos could also detract from lucrative deals with affiliates and cable and satellite providers.

"We're willing to try anything, but the key word is 'try,'" claims one network executive. Executives from two networks add that an iTunes subscription package remains a possibility, but that there is some industry nervousness about the prospect. A subscription could theoretically cost $30 a month, and include a collection of popular shows.

The major obstacle for 99-cent pricing is believed to be a lack of data on what sales might look like. "If you took five things at Wal-Mart and sold them for a nickel, they'd sell really well, because they'd stand out," one executive comments. "But if you took everything in the store and made it a nickel, nothing stands out anymore. Essentially all you've done is lowered the value of your content."

On Apple's end, the insistence on cutting prices is thought to be linked to providing fodder for the iPad, which is launching in March and will at least mark the company's first foray into e-books. The extra power and screen size of the tablet may also make it far more ideal for video than the iPhone or iPod touch. Apple is "desperate" to provide content for the device, say some TV executives.

by MacNN Staff