Monday, February 22, 2010

Apple's Core Concept - 99 Cent TV

Apple, for all of its marketing successes is struggling with the same conundrum as the rest of the players in the online space:  How to best monetize content online.  Its solution?  Decrease cost and increase volume.

Now the big question is whether content producers will be on board with this concept.

Media Memo's Peter Kafka reported last week that CBS chief Les Moonves is backing Apple's effort to charge less for television content on iTunes.  According to the post, during a recent earnings call, Moonves suggested CBS "will mark down the price on some of its shows from $1.99 to 99 cents."

As the Financial Times pointed out in its take on the statement, the cost reduction will likely be timed with Apple's iPad release, and other networks could join CBS in dropping prices.

But not everyone weighing in on the speculation is buying it.  The New York Times rightly notes that the high price tag on mainstream television production and debates over content valuation might keep networks from willingly jumping onboard the Apple bandwagon.

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