A lot of people expected all the big networks to follow what NBC Universal did last month and terminate their distribution contracts with Apple’s iTunes. In August, NBC decided to part ways with Steve Jobs-led Apple because they wanted more flexibility in the prices they charge consumers for their media.
As it stands now, iTunes users have to pay $1.99 cents to download an episode of a TV Show.
News. Corp, who owns the Fox Network, decided to stick with iTunes. That means that you can continue to get episodes of Prison Break, 24 and Bones on your iPod. Their Chief Operating Officer stated today, “Right now we have a perfectly good relationship with Apple. But let me say this, we’re the ones who should determine what the fair price for our product is, not Apple.”
Obviously the networks have a valid point that they should have the power to set the price, but I know where they’re going with this. Left to their own devices, they’ll charge a ridiculous amount of money for their content, the same way wireless carriers charge exorbitant amounts for ringtones. NBC reportedly wanted to charge double the current iTunes price and, quite frankly, they’re smoking something if they think I’m going to pay that…regardless of that means missing an episode of “Heroes” or “The Office.”
Conversely, Steve Jobs is rumored to want to push the price down to 99 cents an episode, a move that would welcome consumers who think that even the current price is just way too much. Even more, it could be said that consumers that purchase videos online are just as likely to buy the corresponding DVD set when it’s released.
What do you think, should the networks be given carte blanche to sell their media at whatever price point they want or should we wait for lower prices on our downloads?
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