Networks Not Biting Yet On Apple's SVOD Pitch
No Takers Yet To Participate In Monthly Subscription Offering
Thomas Umstead -- Multichannel News, 11/7/2009 9:12:49 AM
Cable network executives would not comment on Apple's proposed $30 a month subscription video on demand buffet package.The Wall Street Journal's All Things D site reported Nov. 2 that Apple is pitching networks on the proposal, which would allow consumers to access iTunes' full complement of cable and broadcast network-based shows - currently offered on an individual basis for $1.99 for a standard signal and $2.99 for a HD feed - for a flat monthly subscription. It wouldn't require separate hardware, such as the Apple TV set-top.
Most cable networks offer their top shows for download via iTunes. The Journal speculated Disney might bite first, based on past tie-ins with iTunes, but said no programmers have committed to the idea and further said Apple has floated the concept in the past.
Even if networks decide to take Apple up on its offer, Leichtman Research Group president Bruce Leichtman doesn't believe there will be much consumer interest for the package. He said Apple has not fared well with sales of individual TV shows, pointing out that consumers downloaded only 100 million shows from iTunes between 2007 and 2008 compared to 2 billion songs.
"Consumers have shown little to no interest in buying TV through iTunes," he said. "The subscription package is like a concept in search of a market."
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What a stupid comment from that analyst. People don't want to buy TV shows, therefore there's no point looking at another model they might like?
I'd be happy with rental personally. I don't need to keep the shows.
Greg Alexander - 11/8/2009 8:18:28 PM EST -
I'll be in line to buy an iTunes subscription. Music, I'd rather own, but TV shows are watch once (for most people). THe skittish networks are missing an opportunity for much bigger revenue than they get on the per-show rentals. Took a long time for the music industry to understand this and dump the DRM. The DRM on TV shows is no big deal with a subscription model.
csmith - 11/7/2009 4:16:26 PM EST -
Apple's Internet video subscription idea could be pretty important for the younger set of cable/satellite TV subscribers. People 25 and younger grew up on laptops and might well drop their monthly $60 cable/satellite subscription for a $30 laptop-based TV subscription. I wonder if cable operators will lean on the content companies not to let Apple into the subscription TV business in a way that could do some real damage to traditional cable TV business. In fact, wouldn't such pressure perhaps violate antitrust laws?
Bruce Hurst - 11/7/2009 3:32:05 PM EST -
Only 100,000 TV shows sold.... how many have others sold?
Be careful, once Apple gets it right, there will be another revolution.....
once the iTablet is added to the mix and it ties into AppleTV an explosion could occur.... keep an eye on the puck and skate to where its going if you want to score.....January will be an big deal this year.
Champagene Bob - 11/7/2009 2:17:42 PM EST
