In an updated version of its report on Apple's scrambles to secure last-minute content licensing deals for the iPad, The Wall Street Journal cites people familiar with the matter as saying that electronics maker is now asking that television networks agree to drop the price of their episodes to $0.99, down from $1.99 and $2.99.
The concession on Apple's part comes after the majority balked at a more ambitious attempt by company to court its largest network partners into an all-inclusive subscription service, which would have offered iPad users broad access to the catalogs of many of their favorite programs for a set monthly fee, according to the paper.
Still, Apple's struggling to achieve the networks' approval, even with its pared back strategy. People speaking anonymously to the Journal say the content providers are weary of the strategy, fearing it could ultimately hurt their business and jeopardize "the tens of billions of dollars in subscription fees they are paid by cable and satellite companies for their traditional TV networks."
In response, Apple is reportedly trying to convince the networks to make the gamble, arguing that if the price cuts prove successful, it could unlock a completely new market for digital distribution and consumption that could prove just as lucrative, if not more, than their existing deals with cable operators.
"It's also possible TV companies could offer access to their shows on the iPad through applications that would stream the videos, rather than selling them through iTunes," the report adds. "But streaming is often limited by a tangle of licenses between producers and TV networks."
Another potential hurdle Apple faces revolves around the iPad's intentional lack of support for Adobe's Flash streaming media technology, which many content partners use to showcase their multimedia content and serve online ads.
On the bright side, Apple has reportedly made much-need headway with its eBook strategy for the tablet device, as the Journal cites more people familiar with the matter as saying that all of the largest book publishers are prepared to offer catalogs that rival those of Amazon's Kindle and Barnes & Noble's Nook platforms by the time the iPad ships on April 3rd.
89 Comments
I'd buy that for a buck! I'd rather pay per episode than have a subscription.
This isn't about the money, it's all about control. The networks give away their shows now - but they fear the Apple hegemony will turn them from drivers into passengers in the shift to IP based delivery.
I'd rather pay per episode too, rather than have a subscription.
But... once I cross a certain point, lets say $20 worth of a-la-carte options, turn into a buffet subscription so I can watch anything I want.
Oh and Apple, don't even think about making us be aware of which network or studio is involved to keep count. We just want the content and couldn't care less about monitoring the quota we use from each network or movie studio.
If Apple had the same attitude as the tv networks, they would have never released the iPhone out of fear that it would cannibalized iPod sales. Heck, nor would they have released the Mac out of fear of cannibalizing the Apple II.
Anyone who thinks Apple is trying to negotiate this TV Show subscription for the iPad is naive. They are using the iPad argument as a trojan horse for their TV set. Coming later.