Apple Licenses TV Shows Through iTunes
Apple had several interesting announcements yesterday, including the long-rumored video iPod and a new iMac with Front Row software and remote control (similar to Microsoft's Media Center without a tuner card).
The most important announcement is that Apple is selling downloaded TV shows (with no commercials) for $1.99 each. While the selection is limited to ABC shows, Disney programs and music videos, this is a huge step towards movie downloads. Apple claims that a show can be downloaded in about 20 minutes, and it can be viewed on an iPod, on a television throught a special iPod cable, or even on the computer from within iTunes.
Apple appears to be doing for the TV industry what they have done for music -- proving that consumers are willing to pay for content as long as the price and digital rights management is a fair compromise. Apple has a very liberal DRM policy, as explained on their Web site:
In a nutshell, your FairPlay agreement entitles you to play your music on up to five computers (and enjoy unlimited synching with iPods), allows unlimited burning for individual songs and lets you burn playlists up to 7 times each.
Before the iTunes TV show offering, if you missed a show you would have to wait for it to become available on DVD or illegally download the show using Bittorrent. Now you can buy the episode you missed for less than $2.
Apple was smart to pick TV shows as a starting point. They're smaller than most movies, they look decent on a small screen, and almost 20% of all movies rented are TV shows.
Additional coverage of the story is on the PVRBlog and Thomas Hawk's Digital Connection.
Excellent. $2 isn't bad, even if you just consider it a delivery charge (though $1 is a more magical number).
Now they just need to do the same thing for everything on (broadcast) television - including movies.
Posted by: | October 13, 2005 at 07:58 AM
This is a significant breakthrough for VOD. Once content providers see how this works, I hope all of them will jump on board.
Posted by: Becky | October 13, 2005 at 08:16 AM
I don't see how downloading TV shows over BitTorrent is illegal...VCRs, DVDRs, and TiVo are all considered legal and TV shows are broadcast free over the airwaves. How can sharing recorded versions of free shows be illegal? (Unless it's something like HBO, I guess...)
Posted by: Michael | October 13, 2005 at 03:15 PM
Heh... can't wait to see "Only on VOD! Special version of Battlestar Galactica with extra footage!"
They'd get $1/week from most of the BSG viewers I know...
Posted by: | October 13, 2005 at 08:35 PM
Definately useful if you miss an ep of a show (though I wish ABC would do this for Alias as well), but it's kind of pricey to watch an entire season this way (it's a lot cheaper to get 6 or 7 Netflix discs then it is to pay $44 to see an entire season on iTunes). Hopefully this'll be successful, so that all the broadcast networks will put their shows online...
Posted by: | October 14, 2005 at 12:09 AM
once this model is fine tuned it will the standard. subscribing to single tv shows or networks rather than an entire cable package (as current standards) will be the future model of tv shows.
there was an article on engadget where the author made a suggestion of 'pre-order the season dvd set and receive free downloads from that series' - now that would amazing!
Posted by: Ken | October 14, 2005 at 12:44 PM
No Way man. Pay for a less-than-DVD quality DRM-lader crap than can only play on your 3" IPOD screen? I'd rather download it through Bittorrent. Maybe I'll even rip the DVDs when I rent them off Netflix.
Posted by: | October 17, 2005 at 03:49 PM