iTunes TV would be 99c to ignite iPad video

A second slip in less than a day (subscription required) hints that Apple will halve iTunes TV show prices to fuel iPad sales. The WSJ's "people familiar with the matter" say that while Apple has been selling a handful of shows for about $1, it has been negotiating with studios to apply that price "more broadly" by the time the iPad ships in late March. No deals have yet been struck, according to these sources.

In addition to sparking iPad sales, the cuts would purportedly be part of a larger strategy to "ignite" interest in iTunes' video section as a whole. While music and apps have been popular ever since they were added, movies and TV shows have always played just a small part. The cost has often been a factor, as the minimum $2 for a standard definition show and the high season pass prices have deterred customers from shopping as much as they would otherwise.

Apple is faced with a difficult competitive position as it faces not just rival services but content providers that can sometimes have a conflict of interest. Services like Hulu and TV.com have become widespread and now provide many of the same shows for free in exchange for seeing ads. Netflix is also an indirect competitor in TV as it offers some show seasons as part of its "bonus" Watch Instantly feature.

Studios frequently have direct ownership of these services and are also under pressure from cable and satellite TV providers that don't want a compelling Internet alternative to their subscriptions.

By Electronista Staff