Apple to sell 99 cent TV shows at iPad launch?
By Thomas Ricker 
posted February 11th 2010 2:10AM
posted February 11th 2010 2:10AM
Today's "people familiar with the discussions" prattle carried by both the Wall Street Journal and Financial Times has Apple reducing the price of some of its US television shows to 99 cents in time for the iPad launch. A quick search through the iTunes store makes it apparent that Apple has already been experimenting with the 99 cent rate (and a few freebies) on select iTunes episodes; shows that previously ran $1.99 for standard definition quality or $2.99 in HD. Of course, this could all change by the time the iPad launches since the talks are ongoing. Unfortunately, discussions between Apple and content providers to provide a monthly TV subscriptions have stalled according to sources at the Wall Street Journal, although Apple remains open to the idea.It's worth remembering that prior to adding video support to its iPods, Steve Jobs regularly lambasted the idea of watching video on a tiny, handheld display. The iPad, with its big 9.7-inch 1,024 x 768 pixel IPS panel, is certainly better positioned for video consumption so it's no surprise to hear rumors that Apple's trying to jump start its video business by getting back to the magical 99 cent price point it so loves.
classic steve jobs.
But why the iPad?
Why didn't/couldn't they do this with the ATV?
@John Stathakis Yeah thanks Apple for lowering prices to suit yourself, now help me get my $9.99 ebooks back!
@BUNT2
you're referring to apple's "hobby"? since both it and the ipad essentially require a computer running itunes to function--sharing, as they do, the same crippling lack of flash and an operating system--i don't see much difference between them, either. one is literally tied to your television, of course. but i imagine that these 99c videos will play on your apple tv just fine. so cheer up!
I'd (not) buy that for a dollar!
And now we know why the iPad doesn't support Flash. Apple does not want you to stream Hulu, they want to sell you TV shows. Period.
@BUNT2
ATV never had the mind and market share that the iPad has and will have . . . I think it gives them a little leeway to make the decisions this time around.
*raises glass*
To the death of broadcast TV as we know it...
@BUNT2 so $1 TV shows signifies the death of broadcast TV even though Hulu has been around for quite some time offering free TV shows?
@kojo87
Yes, Hulu is a TV supplement, their mission statement isn't to replace TV, but actually get people back to watching broadcast TV again.
It'd be nice if there was a slider within itunes that allowed you to choose your adverts:price ratio.
At one end: $0.00 for 5 mins of adverts, and at the other: $3.99 for no adverts (and keep the EP for ever).
@BUNT2
$3.99?? But you can get it for $1.99 now for an SD version or $2.99 for HD. Why are you looking to spend more per episode?
@mikeyrogers
Sorry, currency mistake (I'm not in the US)
@BUNT2
Sure, I'm going to choose to watch all my TVs shows for 99 cents a pop on a 9.7" 4:3 screen that can't even handle true 720p rather than on my 56" 1080p HDTV. The iPad will just another mobile alternative, it's not going to be the end of broadcasts as we know it.
@kojo87 Also, Hulu doesn't make money. It's a loss leader. iTunes does actually make money for the content providers, though not for Apple.
@wizzle from a consumer standpoint why the hell should i care? i couldn't care less about the company making money or not. if they provide essentially the same service and it costs me less, i am going with that company.
@kojo87 99 cents is still too much and we have DVRs. Think about it, if you watch lets say 5 shows on a regular basis that have 1 episode per week, that's $5 a week. Roughly, $20 a month and $260 per year. I know I watch more then 5 shows every week, maybe more like 15. That would cost me about $60 per month. For that price, I'd rather have cable and use my DVR (media Center).
99 cents is still just too expensive and they really need to work on a subscription base model that can give me all my cable shows.
that would be AMAZING
@mtnDewFTW
Some might even call it a GAME CHANGER
"magical" 99 cent price point? engadget you're being sloppy with your love affair.
honestly, i don't want the itunes store's "magical" DRM even when it's offered to me for free. they're not cross-platform, for one, but what guarantee do we have that even apple will support these files in the future? somebody has to keep that server infrastructure running in the background or they're all useless. i really don't understand the rush to digital downloading on the part of so many commenters. rip the disc, if you hate clutter so much. that's why god gave us handbrake.
@patches66 Or better, "That's why we have DVD43 and CUDA, so that we can rip a movie in 18 minutes with Badaboom on a 9800gt."
@BLEH is my middle name
Not only that but you can probably still beat Apple's 99 cent pricepoint at Best Buy or Walmart. OTOH, you can probably just get for free what Apple is trying to charge you for. Just get yourself a $30 HD tuners.
That would be highly controversial, surely Apple cant make too much profit from $0.99 apps which would benefit the economy but not them.
@TheComputingGeek This is for TV Shows, not apps. Apple is not making any money selling music/TV Shows/movies. They get their profit from the hardware, thus selling 99c TV Shows is a strategy to sell more hardware.
@pika2000 Right ok, thanks for clearing that up! Still, this is a good way to lure more potential customers in.
@TheComputingGeek
good thing they sell Macs, iPods, iPads, iPhones and AppleTVs.
@pika2000
Good knowledge! Jobs has said many times that Apple's goal is to run iTunes at just over break even. They see iTunes as a differentiating service for their products, not a revenue stream.
I've already decided that I'm getting an iPad, but if they get this deal done, I'll probably start watching most of my tv off it. I don't watch much tv anymore, but the shows i do watch I'm crazy about and I don't mind paying up to $20 a season.
Most people probably wont feel the way do, but it doesn't matter. All that matters is that there are enough people like me to support the revenues.
I think a variety of prices would be best. Lost should probably be more expensive than The Daily Show, for instance.
... which you can already watch for free.
I don't see a pay per episode system being very successful.
A subscription (Such as cable) works nice because people pay once (Per month) and get unlimited. It's one less thing to think about. Rather then asking yourself "Hmm, is this episode really worth the 99 cents?" you can just change the channel if you decide the show is not worth your time. This also opens the possibility to start watching a show you might not have thought would be very good.
Not to mention there are plenty of ways to get then 99 cents cheaper.
The Monthly TV Subscription is a bad idea. What they should do is offer live tv. As the Superbowl demonstrated commercials can be content too. What you miss out on when you buy indivdual shows is the channel surfing experience. You never stumble on a show by accident. If they want to be really revolutionary they can make you choose your own commercials from a list and let you make a Netflix-like queue. So if you like consumer electronics you can choose from Best Buy or Tiger Direct commercials and you earn points by watching them so you can purchase content.
I can watch those on my 42" HD Plasma TV for free. Pass.
Who are these people that are willing to pay even a $1 per episode of tv?
1) Do you not watch live sports from your home?
2) Do you honestly watch only 4 hours of tv a week?
3) Why would you pay for portability when you can have portability via a netbook or laptop and watch the shows for free w/advertising?
Last time I checked hulu didn't offer every episode or even every show. What if I want to get my Doctor Who fix in instance lol.
@a1by
I think you'd be surprised by the number of people who would pay 99 cents an episode. I personally would. I watch very little tv during the week, but the shows I do watch I am crazy about.
At the end of the day, this isn't about our opinion. If enough people feel this way, then it will be profitable.
at Steve Jobs of Apple: since when is a 9.7" too tiny for watching video? oh, because you said so... cool, I see. Perhaps you should stop smoking the oregano
@xtasi
+1 at the Spaced reference.
@xtasi
you sounds like Karl Pilkington having an argument with yourself.
Holding a 10" tablet 2 feet away from your face is...huge.
Y pay when you can watch them free @ Hulu? Wait, apple block that one.
I'd bet the reason they are doing this is because
A. Hulu will be releasing an iPad app for launch and
B. Hulu is going to start charging for certain TV shows
Rumor has it A and B could even happen at the same time. So by moving into the $.99 TV show zone, Apple is heading off Hulu at the pass, as Hulu will be a direct competitor with iTunes for TV shows on the iPad.
@Dreamwriter
Remember when all the Technorati nerds said the iPad was a flop because you can't watch Hulu on it?
Right. Ok, all you guys, fuckin GDGT, Leo Laporte, Kalakanis, eat crow.
netflix?
I'd like to see 3G networks coping with this traffic!!! And if you are at home next to your wireless router, then you may as well watch your episodes on the big TV.
@Marko
..ever heard of time shifting? obviously TIME is the advantage of the iTunes TV shows (that and no ads)
@Wesscoast Ever heard of TiVo and Surround sound?
To jumpstart that business they should start offering it in more than a handful countries...
how much does a new 20 episode season cost on a dvd?
20 bucks?
@mrqs Some shows, maybe. But it's often $40 for a season, and a show like The Wire was around $80 for a season when it hit DVD. Also, the DVD of a season doesn't come out until a few months after the season is over. iTunes puts things up the next day after broadcast.
errr i think they are already doing this i saw a banner on junecloud.com
https://junecloud.com/ads/go/?id=8453
looks like its already happening :)
with so many video streaming sites,and places to download media for free, I would NEVER get an episode from itunes. Does the ipad even have video out so I could watch on my TV?