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Apple gives in to flexible pricing on iTunes with HBO deal
Apple has forged a deal with Time Warner’s HBO cable network to make the channel’s content available for download through iTunes. The new offering is a big step forward for the slowly-growing video portion of Apple's iTunes Store, albeit one that has cost the company to finally break from its infamously hard-line approach to pricing.
Under the deal, Apple has agreed to up its usual pricing of $1.99 per episode to $2.99 for HBO’s flagship shows such as Rome and The Sopranos – though a bunch of other shows will still be priced at the standard $1.99 per episode rate. This is a significant change for Apple seeing as NBC pulled its programming from iTunes last year after the Cupertino-based company refused to charge more than $1.99 for some of network’s most popular shows. Inevitably, HBO’s move will prompt other content owners to demand flexible prices as well.
Under the deal, Apple has agreed to up its usual pricing of $1.99 per episode to $2.99 for HBO’s flagship shows such as Rome and The Sopranos – though a bunch of other shows will still be priced at the standard $1.99 per episode rate. This is a significant change for Apple seeing as NBC pulled its programming from iTunes last year after the Cupertino-based company refused to charge more than $1.99 for some of network’s most popular shows. Inevitably, HBO’s move will prompt other content owners to demand flexible prices as well.
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