Apple has big plans to open up a TV content rental market to the mainstream. However, to make it work it needs to complete backing of most of the big networks and content creators. And if Warner Bros. example is duplicated that just isn’t going to happen.
99-Cents Shows
Just before Apple unveiled the iPad for the first time, a rumor popped up that the company was seeking to offer TV content for as cheap as humanly possible.
In August this plan came to fruition, with Apple beginning negotiations with a number of companies to get episodes of television shows available to rent for just 99-cents.
An episode would be made available for 48-hours within 24-hours of it being aired on broadcast television. And there would be no commercials. All of which is designed to make the content as desirable to mainstream consumers as possible.
Warner Bros. Says No
Unfortunately not all of the big players are on board. In fact, just Disney and News Corps. have so far signed up. And it doesn’t look as though warner Bros. wants anything to do with the concept for the foreseeable future.
According to the L.A. Times, Warner Bros. CEO Barry Meyer had this to say when asked for his thoughts on Apple’s plan:
“We just don’t think the value proposition is a good one for us. [We’d rather not] open up a rental business in television at a low price.”
Is it me or is this short-term thinking of the highest order? The thinking is clear: Warner Bros. doesn’t want to risk DVD and Blu-ray sales of full seasons of its shows, so it won’t even consider offering consumers a choice in the matter.
I guess I can understand this position. But it totally disregards the viewers of these shows who may want to rent a specific episode after transmission.
Conclusions
Warner Bros. isn’t looking beyond its nose on this one, and I doubt it’ll change its mind anytime soon. But Apple has had huge success in turning the mainstream onto music sales via iTunes, and was clearly hoping to do the same for video content.
Can it be that the TV and movie industries are even more stuck in the past than the music industry?
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