Is the first to break the $2 barrier that Apple has insisted on for so long.
Steve Jobs has always been adamant that per TV episode download pricing on Apple’s iTunes be no more than $1.99. It was his refusal to even consider variable pricing plans that caused NBC to stop offering its content on the site last fall.
"We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase," said Eddy Cue, Apple’s vice president of iTunes. "We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers."
So it was interesting to read today that it’s announced a new deal with HBO to offer its content with just such a "dramatic price increase." It now offers “Sex and the City,” “The Wire” and “Flight of the Conchords” for $1.99 per episode, but “The Sopranos,” “Deadwood” and “Rome” are priced at $2.99 per episode. That’s about a third more than their previous max price point.
Eddy Cue, still VP of iTunes, defends the change by pointing out that the higher prices for some of HBO’s shows are still cheaper per episode than they would be if you bought the boxed DVD sets.
"I don’t think it’s a shift in strategy — I view this as an extension of the strategy we’ve had," Cue said in an interview.
“We’re thrilled to bring this incredible lineup of programming from HBO to the iTunes Store,” he continued. “These are some of the most talked about television shows ever, as well as some of the most requested by our customers.”
That may be the case, but I think HBO may just have opened the door for other content providers to begin making material available on iTunes above that magic $1.99 as well.
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