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For the fans of the 99 Cent stores: now they can buy top-shelf ABC and Fox series for that much. Apple announced today that Fox and ABC, ABC Family, Disney Channel series that are owned by the networks (as well as BBC America shows) will be available for rent on its devices for 99 cents per episode for a trial period of several months, with up to 30 days for the viewer to start watching the rented episode and then 48 hours to finish or watch multiple times.
Apple CEO Steve Jobs also introduced the new Apple TV system, which will play those high-definition shows as well as high-def movies. Priced at $99, the box will only let people rent, not buy, content. (For movies the day they come out on DVD, people will have to pay $4.99)
Jobs is the largest individual shareholder and a board member of Disney, and Disney was the first company that signed on to put its shows on iTunes five years ago. So the company’s decision to join the new rental model was no surprise. “When we put our shows on iTunes five years ago, it was revolutionary,” said Anne Sweeney, co-chair Disney Media Networks and president, Disney/ABC Television Group. “Since then, we’ve continued to provide viewers with innovative new ways to access our programming, and today we’re proud to team with Apple on a rental option for fans of our shows.”
News Corp.’s involvement was more surprising, leading some to speculate that the deal might include some additional concessions by Apple, possibly involving its iPad platform.
“We’ve enjoyed a long and valuable relationship with Apple and we’re excited to be working with them over the next several months to explore this innovative offering.” said Jim Gianopulos, chairman and CEO, Fox Filmed Entertainment, who along with fellow chairman Tom Rothman, oversees the company’s TV studio, 20th Century Fox TV. Added Fox Networks entertainment chairman Peter Rice, “We’re always looking to explore innovative and creative ways to reach and engage our viewers on digital platforms, which makes Apple a perfect partner.”
But overall, the creative community has been split on the new discount rental plan, with CBS, NBC Universal and Time Warner opposing it.
“The low price of 99 cents is bad for the content side,” one insider said. “The television business is not a pay-per-view model business; it is a premium pricing license fee model, and that’s not in line with what Apple has just announced. This is a play for Apple to sell hardware, not a play to maximize content.”
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It’s a play to get the hardware into millions of homes and thus provide a viable distribution network via itunes. Content like additional media libraries and other networks will come once the boxes are in a quarter of all the homes in America with the ability to reach targeted viewers via the iads platform. It’s a NEW business model, that’s kind of the point of it all. Itunes killed CD’s and television isn’t too far behind. Hulu will cave by allowing viewers access via the iOS Hulu App.
I think its kind of brilliant, and down the road it might be one of the saving graces of the television industry. Right now there is so much pressure to market within a TV show that the content suffers. This might finally head off the disturbing trend towards Branded Entertainment, Product Placement, Integrated Marketing – whatever you want to call it. This might put the pressure back on the creators to make the best possible content they can make, and not the most market friendly. I would love to see this distribution open up to independent producers to make small genre series that could recoup on a cult hit.
Exactly! The insider who said ” This is a play for Apple to sell hardware” is a complete IDIOT. How are they making any money on a 99$ box?? The whole point is to control the new platform of direct downloading. Get the box into enough homes and they can leverage the content producers. There are a lot of ways to download movies and play them on your TV, but nothing that’s super easy to use and has the content people want. Apple has the power and track record to finally make this happen, look at iTunes and music. Content producers should try and use this platform rather than resist it becoming the record labels in the process. I don’t think they have as much to fear as the record labels because it actually requires a lot of investment to make their product. It doesn’t take a record label to make a record. People do it in their garages all the time. The record labels distributed and marketed, something that became a lot less important if people can find their music on itunes. Plus they had routinely put out poor albums with a couple of good singles. If you can buy songs individually that’s a lot less effective.
I actually like this. Competition is the American way.
Not excited. Movie rentals for a dollar, sure. TV series, it’s more of a longer commitment. I’d consider package deals for some shows, but a buck (let’s not pretend it’s pennies – it’s essentially a dollar) per episode of a 1/2 show is too much for a rental.
I agree, a package like $24.99 to rent an entire season of a series (current shows). As the shows become available you instant get it on your device. Then once the season is complete, they should then give you the option to actually purchase afterwards for $9.99. In total everyone would win.
This is a step in the right direction. At least I hope it spurs Comcast and their Luddite brethren to offer a la carte options for television. With netflix alone I’m close to cancelling my cable subscription.
Why would I now pay to rent a TV episode when I have been watching them for free at places such as Hulu and others. What’s next for iTunes renting songs instead of selling them. I like the AppleTV but if I am going to pay for a TV episode it will be to own not rent.
so then simply by buy them, as you’ve been able to do on iTunes. You can stream the content you already own via iTunes from your computer to your TV. However, I’m fine with paying 13 bucks for a season of DEXTER or MAD MEN once those become avail
How is this version of Apple TV really different from the previous version??
The media is gushing but it is essentially the EXACT SAME in a smaller form factor.
Still not appealing compared to all the other “streaming” media players.
Netflix just kills iTunes (and Hulu Plus) and it is already integrated into most new TVs, DVD players, game consoles, …
Hulu is the best for “new” TV.
Amazon had indicated that they want to compete with Netflix (hopefully [for consumers] by not replicating Apple’s ridiculous “rental” model).
iTunes just doesn’t “get” TV or film streaming.
And the hardware is pretty bad in comparison with other streaming media players. Roku is much cheaper. DVD/blue ray players offer additional functionality for pretty much the same price. Game consoles offer a lot of additional functionality for not much more money. The list goes on and on …
There is really only 3 ways for Apple TV to actually succeed:
1. iTunes offers a pricing model similar to Netflix (unlimited rentals for $5-$10/month but the available library for this needs to be HUGE to compete with Netflix and $10 seems to be the pricing barrier for these services [with Hulu Plus clearly being too expensive!])
2. Get Hulu and every other streaming provider to offer the content on the AppleTV (though Hulu seems to have a licensing problem that prevents them from bringing their TV content to the TV): Netflix + Hulu + OTA on the TV and you can cancel cable/satellite … very nice value proposition to consumers!
3. Turn their precious “AppleTV” into a faux game console – buyers likely already own an iPhone (or iPod Touch) which could be a totally new game controller (unlike the Wii or MSFT’s/Sony’s copycat controllers) allowing for a new genre of games. With its motion sensors the iPhone/iPod could even act as motion controllers! The iPhone also has a ton of available games that could probably be easily adapted to display on the AppleTV with the iphone/ipod acting as controller. A racing game with the iphone as controller (the phone screen could be the back-view mirror) could be really cool. So could be an RPG. MMORPG finally on the TV!
We will see what the GoogleTV box actually has to offer when it becomes available but it will surely offer the same functionality … if not more, since Google might actually be able to integrate Hulu’s web offering. (Though Google’s Achilles heel clearly is quality control based on the experience with their android OS – lots of features but all of them really buggy, so that barely half works properly)
Netflix is in the new apple tv. I imagine hulu plus will at least be available via a
“air play”. I actually stopped cable 2 years ago and have tried most set ups. This will be the dominant box because it’s a 99 dollar added value to millions of iPod touch and iPhone owners. The perfect Christmas gift.
Now we have all of you criminals crying over paying 99 cents for a TV show. You people who download shows and movies illegally would never shoplift in person in a store. But you criminals are OK doing this over the internet right? What is the difference? Both are stealing.
I am sick and tired of todays generation think everything should be given to them for free. Profits and Corporations are EVIL and all you criminals think you should be given everything in free handouts. Pathetic.
“The low price of 99 cents is bad for the content side” Huh? To rent a single tv episode of a single show from a larger series? Frankly, sounds a little high to me. How about an entire season of a show for $4.99. Remember, most people have several favorite shows. And we’re talking RENTAL.
I am really not surprised the studios aren’t participating because they are so out of touch with the times. My question to them, do you have a better platform? Or do you not notice your business model dying right before your eyes? If you ask me, Apple is doing you a favor by doing your job for you.
I would be tempted if you could BUY the content.
You can buy every show or movie – just go to the iTunes Store on your computer. You’ll be able to then stream your content from there to your HDTV via the Apple TV. The big advantage is: you don’t have to manage content storage on your AppleTV.
Thanks-That might be worth investigating.
Apple creates game-changing user interfaces, and it has enormous brand leverage, the two things needed to really establish a new viewing paradigm.
I honestly don’t think this will be a big hit… for just one more dollar, you could own the episode and watch it as many times as you want.
Pay $100 for an Apple TV box that charges $4.99 for a new DVD rental when Redbox and Blockbuster Express kiosks only charge $1.00? No thanks.
If networks like Showtime or HBO offer their shows for rent, I would buy Apple TV in a second. A season of Dexter would run me $11.88, that’s better then subscribing to Showtime or buying the box set.
Of course, this is probably why most premium cable outlets won’t offer this option.
Doesn’t this new appletv allow streaming from netflix? I’m excited for it. Hulu is geoblocked btw. Canada doesn’t get a lot of options. We’re just getting netflix.
Two dollars an episode was too much, 99 cents is just right. I don’t care if its to own or rent, all of the television episodes I have bought I have only watched once. I would much rather do this than wait for cable.
I’ve gotten used to watching Hulu, but the whole business of only five episodes being online at a time doesn’t work all the time. And frankly, I’ll be glad to pay if I don’t have to watch the stupid commercials. I never want to see “Arcomedes” the Greek philosopher again.
Missed in the Apple hype is the announcement from Amazon later in the day that they will be SELLING, not renting, HD TV shows for 99 cents starting immediately.
Apple TV may be too little too late, it’s already being done elsewhere as others have correctly cited.
AppleTV blows, plus Amazon already allows you to BUY TV episodes for 99 cents…no-brainer
This is an an industry game changer! It has created the new pay per view viewing experience at a fixed price. Apple has now established the 99-cent view as it did with music. They have the brand power to pull this off.
In the 80′s, the networks never considered viewers to pay for a cable series becasue they always had t.v. series for free. Cable afterall was for concerts, boxing and movies. The DVD market was an alternative minor player in it’s early stages. Then became an important financing cornerstone. The DVD market put a lot of money into pockets of agents, lawyers and talent. Hollywood, time to wake up and smell the new coffee it comes in 99-cent packages and you can get it anywhere, anytime you want. The real question is how is this going to be treated with respect to distribution fees, residuals and artist royalties.
except Amazon is offering $0.99 streaming tv show purchases. that trumps this hype.
Why would anyone who’s heard of Netflix Streaming give a damn about this? “Ooh! Look! An Apple logo! It must be cool and cutting edge!” Yawn.
exactly Roku box is cheaper and going to offer 1080p Netflix stream plus supports Amazon (which has $0.99 tv show stream purchase) so besides the click apple design what does this box offer?
This strikes me as a great thing for consumers and not at all a bad thing for content producers. The US cable operators have regional monopolies for the distribution of several types of content, and the AppleTV product and business model are distruptive to this status quo. To sum up, I believe Apple TV is a competitive threat to cable operators, but an opportunity for independent content producers and potentially for studios. It provides greater degrees of flexibility in terms of packaging, interaction, bundling, and pricing than the current channels to market.
Netflix already has millions of set top boxes installed (PS3, Xbox 360, Nintendo Wii, Web-TV’s). How is Apple going to compete selling their own very limited hardware against these devices?
Several posters have mentioned it, but most are missing at the HUGE point that you do have the choice to buy as well as rent. The AppleTV streams all the purchased content from your iTunes library as well. 99 cents is for the impulse decision from your sofa — hey let’s watch X , bang! done! For more thoughtful “Season Pass” viewing, purchase in iTunes, and pay a little more for ownership. Only thing missing is DVD extras. This will roll out slow, but will catch on. No moving parts, VERY easy interface, no complicated sync configuration, software upgrades are easy for Apple to push to the box (to add features, etc.) Gonna be huge.