Apple-Warner Bros. Agree To iTunes Deal

jetsons.gifWarner Bros. classics are the latest addition to the Apple iTunes Music Store; shows include ‘Friends,” ‘Babylon V,” and, perhaps most important, “The Jetsons” and “The Flintstones.” In the everything-is-equal-even-when it’s-not world of Steve Jobs, single episodes of the shows are all priced at $1.99. Release.
— The deal comes through Warner Bros. Home Entertainment Group (WBHEG), the unit formed in 2005 to handle all of Warner Bros. Entertainment digital delivery across platforms.
— As Rafat noted yesterday, Warner Bros. Television, which has 26 shows scheduled for 2006-07, and at least four networks including NBC disagree on how digital downloads/streaming videos of current shows should be branded and how the revenues from, say, iTunes, should be shared; the dispute could keep some shows offline.
— Some quick math: some studios and nets are said to be sharing 50-50; based on the estimated 70-30 rev share with Apple, that would give each 35 percent or about 70 cents a download. Add in affiliate agreements with revenue sharing and networks in deals like that could be making 50 cents or less per download. Ad-supported streaming is harder to quantify.
— Apple says more than 35 million videos have been sold through iTunes, which suggests that it’s really time to shift away from the music-centric name. (The iWhatever store would cover everything.) The difference in pricing between seasons and episodes, as well as the sale of “High School Musical” for about $10, makes it a little difficult to come up an exact value; at single-episode prices that would be more than $70 million. Not shabby but still a drop in the proverbial bucket.

Comments have been disabled for this post