Does Apple want to sell TV shows for 99 cents?

The Apple/NBC drama continues with this latest report from Variety. Sources tell Variety that Apple proposed to the studios that TV show prices on iTunes should be lowered from $1.99 each to $.99, to which NBC said, 'No thanks!' NBC is pushing for 'flexible pricing' meaning that new shows would cost more than older shows which makes sense to me if the prices are reasonable (i.e. not $4.99 for new shows) and this scheme is actually already in place in the iTunes Store.

What?! I thought Steve was all about one price or nothing, I hear you say. Yes, that would seem to be the case if one looks only at TV shows and music, which account for most of iTunes purchases but one shouldn't forget that Apple also sells movies . Newly released, or hot, movies cost $14.99 to download while older movies cost just $9.99. Oh, the confusion a buyer must feel when faced with these differing price points!

I predict that in the near future all the studios (including NBC) will agree to sell their shows via iTunes with new shows getting $1.99 an episode and with older shows going to $.99. That way the newer downloads won't compete with DVD sales, and the older stuff will suddenly become more appealing.

Thanks to everyone who sent this in.