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Is Apple Looking to Drop Video Prices?

Posted by Cathy Lu | Friday, September 07, 2007 11:49 AM PT

iTunes Cutting Cost of Video.jpgCould this be one of the reasons NBC bailed on iTunes? Variety is reporting that Apple is interested in halving the cost of TV shows, from $1.99 to 99 cents. Supposedly Apple has been arguing to content companies that cutting the price will increase sales significantly. But the CBSs and NBCs of the world are worried that doing so will affect the number of DVD boxed sets they can unload.

According to Variety, several unnamed sources at various networks and studios have admitted that it may make sense to offer lower prices on older shows, such as "The Brady Bunch," but not for new content, like "Lost." The article also states that non-major networks like MTV or Bravo might find it appealing to sell shows for less. So will we see 99-cent shows on iTunes anytime soon? Apple declined to comment, but Variety seems hopeful that several pricing tiers could emerge: perhaps $2.99 for premium shows (such as those from HBO); $1.99 for hit shows; and 99 cents for older programs.

If Apple can actually deliver on 99-cent TV shows, and someday soon enable video downloads to iPods and iPhones over WiFi, they may just start to look invincible again.

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