Here’s the question on the table: If iTunes cut the price in half of most TV episodes, would it increase buy rates exponentially.
That’s the subject of Brian Stelter’s piece in the New York Times.
According to the article, "What would make the iTunes sales more significant? That is where pricing science comes in. In conversations with networks, Apple representatives have cited 99 cents as the magic price point that brought digital music sales into the mainstream. The company says the same price could propel TV sales, according to the network executives. But the networks have little data about what effect 99-cent sales would have, making them more apprehensive about a change.
And a TV executive gave this analysis to the Times: “ ‘If you took five things at Wal-Mart and sold them for a nickel, they’d sell really well, because they’d stand out. But if you took everything in the store and made it a nickel, nothing stands out anymore. Essentially all you’ve done is lowered the value of your content.’ "