Apple argues that volume of sales for TV shows will rise dramatically as a result of the price cut, but the idea is not going over too well in Hollywood. Studios are concerned about the potential impact these prices would have on DVD sales which have traditionally been an important source of revenue for the studios.
Case in point: NBC Universal just released "Heroes" on DVD, with most retail outlets charging about $40 for the set of 23 episodes. If Apple had its way, the same set of episodes would cost less than $23, potentially making the DVD -- despite its myriad bonus features -- less appealing to consumers.
Apple has proven that at a reasonable price, lots of people are willing to pay for music, and although its video store isn't nearly as popular as its music store, if Apple can actually deliver on 99-cent TV shows they could soon be taking over the video download market as well.