In an apparent effort to position the iPad as the ultimate media consumption device, Apple is reportedly contemplating lowering the price of TV episodes on iTunes to just $1, down from their current price of $1.99.
The Financial Times reports:
The test, expected to coincide with the April consumer debut of the iPad, will offer some shows at the lower price as a way to test whether reducing the cost of video programming will ignite sales, people familiar with the discussions said.
Some television networks agreed to the lower prices after months of negotiations, and having initially resisted Apple’s push. Media executives are under pressure from declining DVD sales and cut-rate rental services such as Redbox, that offer rental DVDs for $1.