Apple Engages in TV-Pricing Talks
Posted by Jesse Ward on Thursday, February 11, 2010 · 
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Apple Inc. is reported to be in discussions with television networks to lower the price of downloaded TV shows available on its iTunes store front. Apple is attempting to beef up its content offerings in advance of the retail launch of its new iPad tablet computer in late March.
The Financial Times broke the story yesterday, followed by a report in the Wall Street Journal.
An unnamed source said that Apple has been testing a price of 99 cents per episode. Apple currently offers TV shows for $1.99 for standard-definition episodes, and $2.99 for high-definition episodes. For an entire season, consumers might pay a whopping $49.99 in high-definition for a popular television series.
The discussions are part of Apple’s broader strategy to overhaul its iTunes service, particularly for video content, and create more compelling pricing packages for consumers.
As the FT noted, iTunes’s 120 million active customer accounts with credit cards on file provides a ripe ground for experimenting with changing the economics of digital media.
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