With Subscriptions Off The Table For Now, Apple To Test $1 TV Shows
MG Siegler
Feb 10, 2010

Leading up to its January event, rumors were swirling that Apple was talking to the TV networks about offering possible subscriptions to their shows through iTunes. Of course, that never happened. While reports had CBS and ABC interested in such a deal, the other networks apparently were less enthusiastic about it — perhaps out of fear of repercussions from the cable companies. But that doesn’t mean that Apple is giving up.

A new report today in the Financial Times indicates that Apple will begin testing the sale of $1 U.S. TV shows this year. Specifically, the new pricing could launch around the time that the iPad does, which will be March/April, FT notes citing people familiar with the discussions. Apple currently sells its shows for $1.99 (standard definition) or $2.99 (high definition) through iTunes. These $1 would be the standard definition variety, apparently, as they will play on the iPad.

Obviously, by cutting the prices of the shows in half, Apple and the networks in the test are trying to see if it spurs sales. It undoubtedly will, but this remains a temporary solution. Apple still wants to do some sort of subscription service for the shows it offers through iTunes. And I would be all about that because it would strike a blow to the major cable operators that control the industry with an iron fist and make us all pay insane rates so they can pad their profits.

Also, a subscription version of television shows would mean you wouldn’t have to store all of them, all the time. It’s simply not practical to buy all the shows you want through iTunes right now. Even if you could afford it, the amount of space they take up would quickly overwhelm your hard drive. This is exactly why iTunes is inevitably going to move to the cloud.

Apple has been testing discounts on its TV shows even before this announcement. For example, if you bought the latest season of ABC’s show Lost early, you could get the season pass for $39.99 instead of the regular $49.99. It’s not clear how the new $1 pricing would change season passes, but presumably, they would be much cheaper as well.

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  • http://plankhead.com Zacqary Adam Green

    The problem is that people were already used to buying music (or at least there was some precedent for it), but TV shows have always been a free, ad-supported thing. TV on DVD is a relatively recent phenomenon, and even then I’d bet most people rent it rather than buy it.

    Sure, it’s “just a dollar,” but dollars add up.

  • Mike D

    this is going to be a tough nut to crack. too many ‘free’ sources for tv content out there…

  • calcanuck

    The only reason I still have cable is for a few select shows I can’t get without it. But if Apple does lower the price or offers a subscription service I’d be inclined to cancel my cable and just go with over-the-air channels supplemented with purchases or subscription through iTunes. Subscription being the better of the two options.

  • http://www.outingcaddy.com Ross

    Combine this with this:
    http://techcrunch.com/2010/02/10/google-fiber-optic-network-home/#comments

    and I’m that much closer to telling Comcast to piss off.

  • John Tarmos

    For me switching from a PC to a Mac had everything to do with security, operating system, buffer overflow attacks, etc….
    But I really dont trust Apple, If I where the networks, I would not touch them with a Ten foot pole, of course apple would say “It will give you exposure” but in reality, Apple will eventually gain the upper hand. I think Apple has grown to such levels that it is no longer a niche player for artists and creative people, it has become for the masses. I think it is a matter of time before another company is created that will take the spot light from Apple.
    I also think Apple made a huge mistake with the Ipad, the product is really worthless and I am willing to bet money that sales of it disappoint all projections. +
    Everybody knows that Steve Jobs cut in line and stole a liver. People are on the donor list for years, many die waiting to get a liver and Mr jobs, get one when He wants one.
    This world is soo corrupt.

  • John Tarmos

    Yes, Apple tells you what to do and you jump like a person who cannot think for themselves. They are your parents…..

  • K

    but we, the consumers, usually don’t see it that way. It is easy to spend just a dollar, especially when you can do it with just ONE click.

  • Steve

    only problem with this model – nothing but reality tv to watch since this “model” sucks for the actual content producers. Ever wonder why iTunes movie selection is so crappy? Hollywood is not dumb.

    Interesting how Apple is for subscription TV shows when it is in their interest but hasn’t launched a subscription music service where they are the incumbent leader.

  • browse

    They had a similar promotion in October – all this season’s episodes were $1 SD, $2 HD.

  • ryan

    If tv networks want to increase sales on iTunes, they should sell tv shows in the iTunes New Zealand music store. Currently we have movies but NO tv shows. Lots of other countries don’t have tv shows for sale in iTunes either.

  • Marius Sews

    What is iTunes?

  • calcanuck

    Well if you like paying for, in this case channels, you never use then go ahead and keep you cable. My reason’s for wanting to ditch cable have nothing to do with blindly following Apple.

    There is no such thing as free you end up paying for what you watch one way or another (whether it’s through a cable provider, internet provider or iTunes) I just prefer to pay the least amount at the end of the day. At least through iTunes can can watch it on several devices not just my TV.

  • IronM@sk

    Problem is it is still too expensive. I follow about 12 – 15 currently running shows at the moment. If each one releases an episode per week, that works out to $48 – $60/month which is more than a satellite/cable subscription where I live.

    Then if one of my friends recommends a show to me that i’ve never heard of but he thinks I would like, the cost starts to build to really unacceptable levels.

    Then there’s the issue of my bandwidth. I believe if I am using my bandwidth, which I pay for seperately, then I should be able to keep whatever I download indefinitely, so that I may watch it again ad nausium. Space is no issue for me. Hard drives are cheap. Rental or streaming is not an option.

    The next issue is quality. I don’t download anything in SD anymore. I have a 60″ TV so anything less than 720p looks positively ordinary, so according to the pricing I would have to spend $72 – $90/month to get those TV shows I follow (assuming they cut HD pricing by the same %).

    FFFFFFUUUUUUUUU….

  • josh

    So do like I did. Buy a dell htpc for $300, hook it up with hdmi, can use a combo of hulu and netflix and be done with it.

  • dennis wilson

    Apple: Please please please move to the cloud. Having to back up my iTunes library is among the most annoying aspects of my “digital” life.

    Also, please support the broadcom card (available for $20 on ebay) that lets my apple TV play 1080p video.

    Steve, I don’t want to pay a cable company $80 per month when I could pay you that $80.

  • Marius Sews

    Or just go http://kino.to or similar webpages.

    We pay for electricity, we pay taxes, we pay for our bandwith. Next we’ll pay for air cos someone had the brilliant idea to privatize it.

  • http://www.cmstechs.com Matt Lawson

    Torrent!!!

    You can download Lost Season 6 Episode 3 from many torrent sites in less than 3 minutes.

    FREE.

    With a JailBroken iPhone or Android you can even watch as AVI format.

    $1 x 20-40 shows a month is too much money!
    Torrent :-)

    Some sites like http://www.bitmetv.org which is invite only has ULTRA fast connections. Better than cable TV and much better than paying $1 :-)

    Nahhhhhhh………….

  • IronM@sk

    You sound new.

    The problem is Matt that what users really want is a fully legal method that cheaply and conveniently services our need. Everybody who reads this blog is well aware that you can get just about anything you want illegally via torrents so don’t act as though you are the first to discover it and bring the knowledge to a thankful public.

    That isn’t the point of this blog.

  • IronM@sk

    Nice try, but Hulu isn’t available outside the US right now (without tweaking region settings). Netflix sounds promising (I hear about it in every ep of HDNation I download), but not for my PS3 as I really don’t want to have to put a disc in to use the service. I’ll have to use my PC to do the 1 month free trial because there is no info on their site about file sizes and bitrates, plus I imagine intercontinental streaming is going to be almost out of the question.

    There’s also no info as to whether it’s streaming only or download and keep so we’ll see.

  • http://www.cmstechs.com Matt Lawson

    No-

    Im very aware. I have been working in this space since 1994.

    I have even pitched Warner Brothers on a paid model.

    My point is $1 subscriptions will not work. It might get some traction but in the end there are too many teen-agers and family members who get Free TV from others who pay the bills.

    There are several concepts around payment but $1 subscriptions for TV shows is not it.

    If a family already pays $80 USD per month for a Comcast cable setup + $20 NetFlix then why would these same people go and spend a bunch of money on $1 shows?

    So until that happens more people will be using Torrent.

    You sound new to all this with your brilliant view on what people want.

    I dont think the point of this blog post is that people will pay $1 with all the other bills they have going. A few shows here and there but not a solution.

    Why dont you take off your IronM@ask when you say rude no-it-all comments.

  • http://www.cmstechs.com Matt Lawson

    Who are you?

    Take off your IronM@ask-
    Write your real name and point a website to who you really are.

    Dont hide!!

    You have no real ideas do you?

    What is your plan? What would you do?

  • IronM@sk

    What? Go away troll.

  • IronM@sk

    …and I just checked and Netflix isn’t available outside the US either so that breaks that idea too. Looks like iTunes is it but I wont be using that.

  • Goona

    Damn we need some IQ checks before people are allowed to register.

  • http://www.appgiveaway.com Mikey

    I am looking forward to promoting iPad apps on http://www.appgiveaway.com ;-)

  • http://www.koona.com Tomas Sancio

    TV shows are free if you happen to:

    a) Live in the USA
    b) Catch it when it’s aired or on Hulu through your computer.

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