Sorry!! The article you are trying to read is not available now.

Studios Balk at Apple's Rental Plan

Print comment Post Comments
Earlier this month, as Apple head honcho Steve Jobs was unveiling his latest attempt to make the Apple TV appealing, one of the deals on the table was the reduced rental price of TV shows -- now down to $0.99. Jobs mentioned that Fox and Disney were already on board with the price reduction and insinuated that any studio to refuse such an offer would be a fool.

Well, count Warner Bros. CEO Barry Meyer as one of those fools.

According to the Los Angeles Times, Meyer has rejected the offer to participate in Apple's $0.99 deal because he found the price to be far too cheap, thereby hurting the sales of full TV seasons. Speaking at a Merrill Lynch conference in California yesterday, Meyer said, "We just don't think the value proposition is a good one for us." He added he'd rather license seasons as a whole instead of a per-episode basis.

The Times' Joe Flint also notes that the $0.99 deal doesn't seem to be a draw for other studios either. As of now, CBS and NBC haven't bitten at Jobs' sub-dollar bait. Apparently, everyone is unaware that Hulu and network websites will stream the majority of these programs for free. Everyone except viewers, of course.

Without a solid spate of studios backing the Apple TV platform, this could be yet another one of the company's failed experiments in home-media centers.

Hopefully, Boxee and Google TV will pick up the slack later this year.
POSITION:  No positions in stocks mentioned.