Warner Brothers CEO fears $0.99 TV episode rentals will chip away at full season sales

Fri, Sep 17, 2010


With the amount of control Apple wields over music with its iTunse/iPod combo, it’s understandable that Television networks are wary of jumping into bed with Apple. Recently, Steve Jobs announced $0.99 Television episode rentals from iTunes but noted that available shows will, for the time being, only be available from Fox and ABC. While Jobs expressed hope that other TV networks would soon sign on the dotted line, a recent report from the AP suggests that TV networks aren’t exactly in a rush to push out cheap rentals, Apple’s reputation for power aside.

Warner Brothers CEO Barry Meyer recently stated at an investor conference hosted by Merril Lynch that his company did not strike a deal with Apple due to fears that cheaper pricepoints would have an adverse affect on sales of full season Television Shows. And with sales of individual episodes currently going for $2.29, Meyer expressed that it made little business sense for Warner Brothers to forgo that income and make $0.99 rentals available as another option.

You know, because consumers hate choice.

via AP


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