Apple Pushes For $1 TV Show Downloads
The plan has a drawback for TV networks that may lose control over the pricing of their own products. Their counterparts at music publishers already resent the fact that Apple is so powerful in the digital song and album distribution business that it can set prices on content. The music companies believe that, in many cases, they could command higher prices for the work of their artists.
The objections to Apple TV price plan is not unlike the battle that eventually developed between Amazon (AMZN) and book publishers over $9.99 e-book prices. Publishers would like to charge amounts closer to $15. Their battle with Amazon is ongoing, although the e-commerce firm seems to have settled price point differences with large book publisher Macmillan.
Once Apple begins to sell TV shows for $1, the networks may not be able to put the genie back in his bottle. Consumers, who will grow used to the low price, may not accept a $2 charge any more.