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News

CBS May Begin Price Avalanche – Just In Time For iPad

Its no secret that Apple likes to make demands of content providers on iTunes in order to make both new products using the store and the store itself more appealing...

cbs-logoIts no secret that Apple likes to make demands of content providers on iTunes in order to make both new products using the store and the store itself more appealing (Its a strange paradox in many ways because the App Store and iBook store both adhere to the agency model where content providers set their own prices with Apple taking a fixed cut). The iPad is the latest product to inspire an Apple attack on pricing and it looks like they’ve taken down their first major player (other than Disney who will no doubt fall in line for obvious reasons). CBS are reported to be lowering the price of some of their TV shows from $1.99 to $0.99. An article on MediaMemo states:

CEO Les Moonves says the broadcaster will mark down the price on some of its shows from $1.99 to 99 cents.

“There are certain shows that will be sold on Apple for 99 cents,” Moonves said today, adding, however, that details have not been worked out.

How long it will be before the rest are ushered in to line, we don’t know but the potential market of the iPad and the extra revenue that it could generate must be pretty alluring to the networks, who may now want to keep up with the competition.

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