23 Comments

Summary:

Apple is hoping that $0.99 TV show rentals will kick-start the sale of its Apple TV device, but Warner Bros. Chairman Barry Meyer isn’t having any of it. He simply thinks that those cheap rentals are underpriced, which is why his company stays away from them.

apple tv shows

Don’t expect The Big Bang Theory to show up on your Apple TV any time soon — at least not as a rental. Warner Bros. Entertainment Chairman Barry Meyer told the audience of the Bank of America / Merrill Lynch 2010 Media, Communications & Entertainment Conference yesterday that his company doesn’t see a good value proposition in these rentals, according to a Los Angeles Times report.

The paper quotes Meyer saying that he doesn’t want to “open up a rental business in television at a low price.” His biggest fear seems to be that cheap rentals will hurt the licensing of entire seasons to other broadcasters.

Holdouts like these could be problematic for Apple. The company has up to now only won over Disney and News Corp. for its TV show rental service, with NBC and CBS waiting on the sidelines as well. That’s decidedly different than one of Jobs’ earlier low-priced success stories: The iTunes music store had songs from all five major labels when it first introduced the idea of a 99-cent price point for music downloads to the world in 2003.

Of course, if history tells us anything, then it’s that Apple won’t relent from the idea of the 99-cent rental anytime soon. The iTunes music store only introduced more variable pricing models after Apple had captured absolute market dominance with it, and in turn sold tons of devices. If has any hopes that the TV show rentals will do the same thing for Apple TV, then he’s going to stick with 99 cents, and hope that Warner eventually changes its mind.

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  1. » Are Apple TV Rentals Too Cheap? – NewTeeVee Friday, September 17, 2010

    [...] Are Apple TV Rentals Too Cheap?NewTeeVee17, 2010, 9:48am No Comments Don't expect The Big Bang Theory to show up on your Apple TV any time soon — at least not as a rental. Warner Bros. …Warner Bros claims Apple's TV plans too cheapNetworkWorld.comWarner Bros.' Barry Meyer not ready to bite Apple's TV rental planLos Angeles Times (blog)Warner Bros. doubts Apple's 99 cent episode deal with Disney and News CorpExaminer.comThe Associated Press -All Things Digital -Techwatchall 178 news articles » [...]

  2. But I wonder if Meyer has any facts to back up his belief that cheap rentals will hurt licensing to other broadcasters.

  3. » Studios Balk at Apple’s Rental Plan – Minyanville.com Friday, September 17, 2010

    [...] month, as Apple head honcho Steve Jobs was unveiling his latest attempt to make the Apple TV …Are Apple TV Rentals Too Cheap?NewTeeVeeWarner Bros claims Apple's TV plans too cheapNetworkWorld.comWarner Bros. doubts [...]

  4. Warner Bros. execs find Apple’s 99 cent TV show rentals too cheap – Apple Insider • Apple TV Australia Friday, September 17, 2010

    [...] join on for the rental service, upon which Apple's new cloud-centric Apple TV will rely. …Are Apple TV Rentals Too Cheap?NewTeeVeeWarner Bros claims Apple's TV plans too cheapNetworkWorld.comWhy Warner Bros. Is a [...]

  5. AnonymousCoward Friday, September 17, 2010

    That is ludicrous, they are still to expensive. According to a Nielsen’s Three Screen Report, the average American watched 153 hours of television a month in the first quarter of 2009. Are these Apple TV “rentals” 30 minutes in length? If so, you are looking at a $306.00 per month TV bill for an equivalent experience.

    I want a .25 cent per rental, RENTAL, not purchase. Maybe I would pay $1.99 to purchase it, cause right now, for about $40.00 a month one can view and record with a PVR, anything they want.

    These corps are too greedy, and are having a really tough time making the switch to digital.

    How about all of those typewriter repairmen out there. What if they demanded we got rid of all of our computers because it was running them out of business.

    What a joke.

    1. I was thinking about this the other night, if I watch X shows and each have around 23 episodes per season and rent them on Apple TV that’s a whole lot of money. Unless the rental model is there for those who missed an episode?

  6. » Warner Bros. execs find Apple’s 99 cent TV show rentals too cheap – Apple Insider Friday, September 17, 2010

    [...] network TV shows, believe that Apple's 99 cent prices TV show rentals need to be …Are Apple TV Rentals Too Cheap?NewTeeVeeWarner Bros claims Apple's TV plans too cheapNetworkWorld.comStudios Balk at [...]

  7. Seriously? I can watch the Big Bang Theory for FREE with over-the-air TV and the local channels even have HD. I can even record it with a dvr, a vintage vcr, or a eyetv setup on my computer.

    Renting tv shows (except for shows u can only get with paid cable) is silly. No, it’s just plain retarded.

  8. » Apple’s TV deal too cheap: Warner Bros. – Examiner.com Friday, September 17, 2010

    [...] announced …Warner Bros. execs find Apple's 99 cent TV show rentals too cheapApple InsiderAre Apple TV Rentals Too Cheap?NewTeeVeeWarner Bros claims Apple's TV plans too [...]

  9. Studios like Warner Brothers still live in the Stone Age. How much money per viewer per episode do the make from the networks? It can’t be more than 99 cents.

  10. » Remains of the Day: Don’t change the channel – Yahoo! Tech (blog) Friday, September 17, 2010

    [...] who …Warner Bros. execs find Apple's 99 cent TV show rentals too cheapApple InsiderAre Apple TV Rentals Too Cheap?NewTeeVeeApple's TV deal too cheap: Warner [...]

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