March 17, 2010

TV Networks Pushing Against Apple’s Plan to Lower Episode Pricing

The New York Times is reporting that TV networks are still resisting Apple’s planned push to cut prices of TV shows from the current $1.99(standard definition) to $.99. The report suggest that networks continue to display skepticism in the this plan, even thought there have been rumblings that some networks are participating in a trial of lower priced content the will launch alongside the iPad.

Television production is expensive, and the networks are wary of selling shows for less. They are equally wary of harming their far more lucrative deals with affiliates and cable distributors, who may feel threatened by online storefronts like Apple’s and those operated by Amazon, Microsoft and Sony.

But the networks do not want to ignore the 125 million customers with credit cards who have iTunes accounts, either. “We’re willing to try anything, but the key word is ‘try,’ ” said a TV network executive who requested anonymity because his company had declined to comment publicly on talks with Apple.

CBS CEO Leslie Moonves has made comments that hint at CBS’s participation in the trial. PBS is currently running at three-week dry run, offering some of their children’s shows at $.99.

It is also worth mentioning that Apple has been rumored to be working on an “all you can eat” TV content subscription service.

Apple Raises iPhone’s App Size Download Limits to 20MB Over Cellular Netowrk

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MacRumors is reporting on reports from iPhone users that Apple has raised the download cap for App Store applications from the previous 10MB to a new limit of 20MB. This new limit seems to apply to iTunes Store content as well.

This will give developers a little more breathing room when creating applications and elevating frustrations some users were experiencing when attempting to download applications over the 10MB limit.

This move is likely in preparation of the 3G iPad coming in sometime in April.

Counting Down: 10 Billion Songs

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Apple has launched a promotional giveaway called “Countdown to 10 Billion Songs“, which offers the winner a $10,000 iTunes Gift Card. The counter on Apple’s home page at the time of this writing pegs the current number of downloads around 9.8 billion.

Apple’s official rules state that participants can have 25 entries per day either by iTunes Store music purchases or by filling out an entry form on Apple’s site. The contest has already begun and will end when the 10 billionth download is reached.

The prize will be awarded for the entry (either through a song download or through the non-purchase online entry) sent immediately following the download of the 9,999,999,999th song. The potential winner will be determined by the order of the entries received. In the event that more than one entrant would be a winner based on the simultaneous timing of entries, one entrant will be randomly selected from those entrants as the winner. Each entrant?s chances of winning are dependent upon the number of eligible entries received.

Apple has had similar contests in the past. You may remember the One Billion App contest last year, or even the One Billion Song contest of 2006.

Apple Ready to Test Lower Prices for Some TV Downloads

itunes1.jpgFinancial Times is reporting that Apple will begin a trial at the iPad launch lowering the prices of some TV iTunes downloads to $1 from the current pricing of $1.99. This trial will start in April. Also worth noting is that Financial Times previously reported that Apple was negotiating with TV networks to lower content pricing. It appears that some of them went along with the plan.

Some television networks agreed to the lower prices after months of negotiations, and having initially resisted Apple’s push. Media executives are under pressure from declining DVD sales and cut-rate rental services such as Redbox, that offer rental DVDs for $1.

It is not yet clear which or how many of the US free-to-air and pay-television networks have agreed to the lower pricing. Some media executives said they have not been approached with the new prices.

Apple is also rumored to be looking into “best of TV” monthly subscription packages intended to ultimately replace cable providers.

Major Music Labels Seeing Slower iTunes Music Sales Growth After Last Year’s Price Hike

itunes1.jpgMeidaMemo is reporting that Warner Music Group has announced that they have seen slower sales growth of iTunes Music sales after last year’s introduction of variable pricing.

Warner Music Group (WMG) said this morning that it has seen unit sales growth at Apple’s iTunes (AAPL) decelerate since the price increase: Industry-wide, year-over-year “digital track equivalent album unit growth” was at 5 percent in the December quarter, down sequentially from 10 percent in the September quarter and 11 percent in the June quarter.

And since iTunes sales make up the majority of Warner’s digital revenue, growth is contracting there, too. In the last quarter, digital revenue at the label was up 8 percent compared to the previous year; a year earlier that number was 20 percent.

Warner CEO Edgar Bronfman Jr. is still claiming that the price increases were a “net Positive” for the company, but does have enough sense to realize that raising prices by 30% in the middle of the worst recession in years, wasn’t the best move.

MediaMemo goes on to say that Apple still has approximately 70% of the digital music download market, and reached 25% of total music sales in the U.S. just last year.

In my opinion, this is exactly what’s wrong with the music industry. The major music labels are becoming increasingly irrelevant due to indie musicians using the web as a distribution channel, in effect removing the middle man. Instead of retooling their companies for the changing landscape, the music labels decided to go with they myopic view and just raise prices in the middle of a recession. These jokers won’t be around in 20 years.

Apple Expands Scope of Browser-based ‘iTunes Preview’ to Include App Store

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TechCrunch is reporting that Apple’s browser-based “iTunes Preview” now offers previews pages for App Store applications.

To see this for yourself, open any direct link to an iPhone app (example) in your favorite Web browser.

You’ll notice that instead of only throwing up a dialog box prompting you to confirm that you wish to launch iTunes on your desktop, you’ll see a nice page with the app logo, price, description, screenshots, rating, reviews and more in a new window or tab.

Simultaneously, iTunes will be opened and you’ll be directed to the app’s detail page in the App Store.

iTunes Preview debuted last November, and allowed consumers to view iTunes Store music content in their web browsers without launching iTunes. Not to long thereafter, iTunes Preview was updated, and now offers iTunes’ famous 30-second song samples.

It appears that Apple’s acquisition of music streaming service Lala media is playing a role in these developing web-based iTunes ventures.

Apple Pushing Networks to Lower TV Content Pricing on iTunes?

itunes1.jpgFinancial Times is reporting that Apple has been pushing TV networks to lower the prices of their content on the iTunes store, in an effort to bolster what Apple considers low sales of TV episodes. This move would reportedly cut episode pricing in half from the current $1.99 to a new price of $.99.

The plan is seen as an integral part of the iPhone maker’s strategy for the tablet computer, which it is expected to unveil tomorrow.

However, networks are resisting the move as they fear a repeat of the music industry’s pact with Apple in 2003 to sell individual songs for 99 cents on iTunes. The price helped to simplify and boost downloads of digital music but dented album sales .

The report goes on to claim that Apple has been more concerned with print publishers ahead of tablet launch, but Apple will soon be turning their attention once again to the television networks hoping that the tablet will be a suitable platform to leverage against TV networks.

It’s also worth re-mentioning that Apple is rumored to be working on “best of television” packages of TV content that would in effect replace the need for cable TV subscriptions.

iTunes Hosts a Link to Haitian Red Cross Relief

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Apple has posted a prominent link on the iTunes Store main page that allows users to donate to the American Red Cross to support relief efforts in Haiti after the devastating earthquake they had early last week. You can make donations in six amounts ranging from $5 to $200, this is handled just like any other iTunes purchase, and all of the proceeds go directly to the Red Cross.

On January 12, a series of earthquakes measuring 6.5 to 7.3 on the Richter scale devastated Haiti. The American Red Cross is working with its partners in the global Red Cross and Red Crescent network, including the Haitian Red Cross, and other partners to assist those affected by this disaster.

Your gift to the American Red Cross will support emergency relief efforts to help those affected by this earthquake. Assistance provided by the American Red Cross may include sending relief supplies, mobilizing relief workers and providing financial resources.

Also worth noting is the massive Indie+Relief program being held on January 20, where some 100+ indie Mac developers are donating that day’s proceeds to Haiti. Indie+Relief is the brain child of my friend and fellow Evansville resident, Justin Williams. Great job guy.

So, I highly encourage each and every one of our readers to donate to this cause. It’s times like these that prove that we can all get along in the world, if only for a moment, and that should make each and every one of us proud.

Apple Adds 30-Second Song Previews to Their ‘iTunes Preview’ Webpages

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Just as quietly as the was introduction in November, Apple has now added 30-second song previews to their “iTunes Previews” webpages. GigaOM points out that these previews are encoded in 44.1 KHz AAC which run at 300 kbps, and are served up through QuickTime.

Purely speculation on my part, but I can almost guarantee Apple implemented this with technologies they recently acquired when they bought Lala Media a awhile back.

I think Apple is testing the waters. I suspect Apple is preparing to offer a way for users to access the iTunes Store without opening iTunes.

App Store Hits 3 Billion Downloads

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Apple has announced that over three billion iPhone/iPod touch applications have been downloaded from the App Store since it’s official launch in on July 10th 2008.
Here is the customary Steve Jobs quote:

“Three billion applications downloaded in less than 18 months — this is like nothing we’ve ever seen before,” said Steve Jobs, Apple’s CEO. “The revolutionary App Store offers iPhone and iPod touch users an experience unlike anything else available on other mobile devices, and we see no signs of the competition catching up anytime soon.”

What makes these numbers so impressive, is the very rapid growth being seen. Just three months ago Apple reached the two billion download mark. This coupled with steady growth in iPhone and iPod touch sales, make this a combo to be reckoned with. The App Store is available in 77 countries and offers applications in 20 categories.

Chart Courtesy of MacRumors