Monday, November 2, 2009
Apple’s iTunes Pitch: TV for $30 a Month
Would you pay $30 a month to watch TV via iTunes?
That’s the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me. The industry finds this idea both tempting and terrifying.






One big reason why very few ad dollars have yet to make their way from television to the Web, even though online video is booming: TV viewing isn’t shrinking. Yet. Nielsen says more Americans are watching TV than ever before–up 1.2 percent in the last quarter–and they’re spending more time watching TV, too–that’s up 1.9 percent, to a staggering 153-plus hours per month.
What does it take to add a third player to a joint venture between two media conglomerates? More than four months of negotiations. Tens of millions of dollars help, too. That’s what finally got Disney to join up with GE’s NBC and News Corp.’s Fox in Hulu, the fast-growing Web video site. Here’s what that means for the three networks and the rest of the Web video business.


