According to The Associated Press, Barry Meyer, chief executive of Warner Bros., said his company decided to not participate in Apple's proposal for 99 cent TV episode rentals, because they feel the price is too low. Meyer revealed his company's stance this week at an investor conference hosted by Merrill Lynch in California.
"Meyer said the deal was not a good value for the studio subsidiary of Time Warner Inc., which sells permanent downloads shows such as 'Gossip Girl' on iTunes for $2.99 each," the report said.
Please pardon me if this is a dumb question, but "why not offer both?" That way, people like me who only want to watch a TV show episode once, such as the episode of the Bachelor that Kristi missed while we were on vacation, can do so without having to own it. And then also, people like me who want to own every episode of Mad Men can purchase them to keep.
But as it stands now, they're not making that .99 cents from the episode that we missed. We either carry on without it or we try to find it online somewhere. But given the option of spending a measley buck and watching it on the big screen while sitting on the couch or watching it on the computer screen on Hulu or on the network website, we'd almost always choose to rent and watch in comfort.
Executives thinking like this - out of touch with the people who consume their products - are holding back digital delivery as a whole.
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