CBS in talks with Apple over video content distribution

CBS Digital has been in talks with Apple Computer over the prospect of making its video content and television programs available for download from the iTunes Music Store, CBS Digital President Larry Kramer said this week.

The broadcast network on Wednesday unveiled plans to distribute three episodes of prime-time sci-fi series "Threshold" via the CBS.com website while it continues to weigh other distribution options.

In an online report on Thursday, Kramer is quoted as saying a partnership with Apple is a strong possibility as long as the "economic proposal is fair enough."

Apple has already struck a deal with rival network ABC, where it sells episodes of five of ABC's premiere shows, including "Lost" and "Desperate Housewives," through the iTunes store for $1.99 each.

While CBS Digital continues to mull over its next move, Kramer said his network's top priorities include "continuing to establish CBS.com as an online destination, moving more original content online, and aggressively building an audience through communities with mutually shared interests in CBS's programming."

Current negotiations aside, CBS has otherwise shown interest in jumping on the iTunes Music Store bandwagon. Following the release of Apple's fifth-generation video iPod, the network began offering free podcasts, from "60 Minutes" to "Guiding Light," on the iTunes store, possibly as an indication of things to come.

Last week Apple announced that iTunes store customers have downloaded over one million videos since they debuted on October 12.

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36 Comments

cosmonut

said about 18 years ago

Apple: We're going to sell them for $1.99 per episode.
CBS: Yeah, let's talk about that.
Apple: We're going to sell them for $1.99 per episode.
CBS: But we could sell them for more/less, right?
Apple: Maybe you're not following...

Apple can't let CBS undercut ABC and Apple can't let anyone sell shows at different price points. To do so would put the RIAA in a position to say "see, you have different prices for different videos, now we demand that songs sell for other than 99 cents."

melgross

said about 18 years ago

What I'm concerned about is whether these companies will all decide to sell their content on their own sites. Kramer is persuing a deal with iTunes, but at the same time wants to make CBS.com a distribution center for their stuff. I don't know how that would work out.

What would be the price. What would be the quality level. And just as important for iPod users, what would be the method of distribution?

Obviously there would have to be DRM. This is where Apple will screw themselves. By not licensing their DRM to others, these others use WMP DRM instead, insuring that it WON'T play on an iPod. It's the rock and a hard place for Apple.

I think that Apple should do what Amazon does. Have stores within the iTunes site. Just make sure that those stores hew to certain iTune standards insofar as the interface goes. This has proven to be one of the most profitable areas to Amazon. It could be for Apple as well. Let these companies charge what they want. Competition will level the price field fairly soon. But the iTunes experience will be intact. Apple would still be able to sell as well.

They would probably get far more content that way. It's unlikely that most content providers would pass up a chance to get a place in the iTunes store.

Apple has the same problem with CD's and DVD's. Those companies want to license Fairplay to put on the disks, but Apple hasn't been willing to let them do so. So more and more disks will not be rippable to iTunes.

Apple really does have to think about this.

schmidm77

said about 18 years ago

Quote:

Originally posted by melgross
Apple has the same problem with CD's and DVD's. Those companies want to license Fairplay to put on the disks, but Apple hasn't been willing to let them do so. So more and more disks will not be rippable to iTunes.

Apple really does have to think about this.

Other than the fact that these new DRM audio CD's are shipping with a Windows rootkit that idiot users are more than happy to install, how exactly are people not able to rip the tracks into iTunes? And what does any of that have to do with my Mac?

chris cuilla

said about 18 years ago

Quote:

Originally posted by CosmoNut
Apple: We're going to sell them for $1.99 per episode.
CBS: Yeah, let's talk about that.
Apple: We're going to sell them for $1.99 per episode.
CBS: But we could sell them for more/less, right?
Apple: Maybe you're not following...

Apple can't let CBS undercut ABC and Apple can't let anyone sell shows at different price points. To do so would put the RIAA in a position to say "see, you have different prices for different videos, now we demand that songs sell for other than 99 cents."

I love it. Sounds exactly like the way "The Steve" might negotiate.

melgross

said about 18 years ago

Quote:

Originally posted by schmidm77
Other than the fact that these new DRM audio CD's are shipping with a Windows rootkit that idiot users are more than happy to install, how exactly are people not able to rip the tracks into iTunes? And what does any of that have to do with my Mac?

Because I've purchased CD's over the past few years that not only won't play on my Mac's, but in some cases wouldn't even eject from the drives, and in a couple of cases actually resulted in a complete lock-up of the machines. These played well on a PC.

You are talking about Sonys' software. But that is only the tip of the iceberg.

These problems have been well publicized. Many here have had the same problems.