Although the media industry has done a better job than the music industry at staying relevant, it should start thinking about realistically discussing options with Apple on its new TV episode rental scheme.
Barry Meyers, the chairman of Warner Bros., recently said he doesn't believe that the 'value proposition is a good one for us', and other major players such as NBC Universal and Viacom Inc. seem to agree. In their opinion the low price of $.99 undervalues the television content, but, more importantly, they fear that such a rental option will push consumers to online streaming and away from regular TV (and lucrative monthly subscriptions). The Walt Disney Co. and News Corp. have been talking with Apple, and Disney is expected to come to an agreement soon - although the fact that Steve Jobs sits on the board is likely a large factor.
Online streaming is currently only used by some people in some circumstances so losing customers to the internet in the immediate future won't be instantaneous. However, at some point internet-enabled televisions will become the standard, and the industry will be forced to alter its distribution strategies. That's not to say I think the industry should agree to a pricing scheme it believes to be detrimental to earnings, and I certainly don't doubt that teams of executives are already losing hair worrying about the future of media distribution. But I do think it's in the industry's best interest to begin collaborating with companies who have a better idea of where the technology is headed. And a good place to start is with Apple.
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