In a recent and very public recent dispute with NBC Universal that included sales rights for television shows, Apple claimed that the studio wanted to increase prices while NBC said they simply didn't want a flat rate. Apple has been very clear in the past that they believe simple pricing is an important part of the iTunes business model.
Apple's insistence on any particular price model raises the question of how good an idea it is for a seller to dictate price to producers. Certainly a better deal for consumers may be one result, which is what Apple is betting on. However, it's also undeniable that not everything carries equal value to viewers. If other studios decide to follow NBC Universal's lead in taking their business, and content, to other outlets, Apple may have to compromise more on pricing.
The idea of across the board price cuts surely doesn't sit well with studio executives, but a reasonably simple two or three tiered price structure, allowing popular shows to sell for as much as, or more than they do currently might net more interest in the lowered prices among studio executives.
Source: Variety
Written by: Rich Fiscus @ 8 Sep 2007 15:44
