Just because they're doing this doesn't have to mean they're challenging iTunes.

I would not be at all surprised to see all the networks offer something like this AND put themselves in the iTunes store over the next few months.

Judging by the initial success of the iTMS video ($2M in revenue in 3 weeks), eventually, the other big networks will be foolish not to cut a deal with Apple. Although the pay-per-event cable model works well and has been around for years now, not making the programming available on iTMS will mean just refusing an additional stream of certain profit with zero risk.

With analysts predicting 37 million iPods sold in this year alone, a good part of that number will play video. Anyone who fails to see the expanding market for video downloads there is probably myopic and should have their eyes checked soon.

They're missing the point, I think-- especially if they decide not to do iTunes. Some might want a pay-per-view for home, but the point of the iPod is portability and convenience.

I've never understood the claims of "competition" between these sorts of things--after all, do apartment complexes "compete" with single-unit houses? Do car leasing programs "compete" with car sales? Of course not; they're completely different business models for different needs.

There's nothing wrong with the iTMS/sales model (obviously!) and there's nothing necessarily wrong with the Napster/subscription model; it's just a question of how much demand there is for each, and whether the business can be run profitably.

I always hate seeing the posts that are nothing but criticisms, but I had to point out that the shows you list for CBS are actually on NBC, and vice-versa. The Times article you linked has them correctly.

Anyway, a big THANKS for all the hard work you do providing us with the Apple/Mac news we love to devour!

Flash

The first key thought here are the cable/satellite companies, the owners of the pipes, finally relented now that iTMS has TV content available. They had to price less than iTMS because it's not for keeps (can you record the VOD telecast?), and it's not portable.

The second thought is that DVRs must still be too hard to use. Anyone paying for the NBC content over DirecTV should've recorded the show in the first place. The iTMS difference is you no longer have to use a DVR and you no longer need to have a cable subscription.

The third thought is that the affiliates are still angling for their share of the extra revenue as seen in the geographical limits on the CBS deal. That's also an obstacle for the networks to sign up to the iTMS approach.

The DVR idea is so stupid. If I pulled up the now playing menu on my Tivo and there was a bunch of shows there that I didn't record AND it demanded I pay 99 cents to watch each one... yeah thats gonna go over REAL well! Good thinking guys! How big of a market do they possibly think there could be? If somebody likes a show enough that they'd be willing to pay 99 cents to watch it, then they probably already have a season pass scheduled to record it! And if they didn't, it wouldn't take them too long to figure out that if they did set it to record they wouldn't have to pay anymore!

Oh and the On-Demand idea. Lots of TV shows for free, but now suddenly you have to start paying for shows!

Two examples of the old "used to be free but now it costs money" business model. That ALWAYS works! I don't think it will be long before NBC and CBS are on iTMS.

With upwards of 30 million viewers (thats more than any prime hit) who paid a $200+ premium to join, and they are the ultimate demographic, young hipsters with money to spend. and when they are on their computers, playing games, buying music, watching cable tv, surfing web, they just may be tuned out of Tv networks product.

getting them involved via itunes would be smartest move they could have made.

...no need to challenge, just join.

In reading all this, just keep in mind that the iTMS (Internet) is the cable/satellite bypass mechanism, according to Steve. Although the networks are free via broadcast, upwards of 80% of Americans have cable/satellite. So the iTMS gives the networks leverage.

And I'm sure Steve is working on the cell phone bypass mechanism, as well.

exactly! PVR / VCR... they've taken care of this, it's a redundant solution that they've got themselves into. This is about video on your computer or on the go which isn't addressed by these two companies.

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Biff wrote:
The DVR idea is so stupid. If I pulled up the now playing menu on my Tivo and there was a bunch of shows there that I didn't record AND it demanded I pay 99 cents to watch each one... yeah thats gonna go over REAL well! Good thinking guys! How big of a market do they possibly think there could be? If somebody likes a show enough that they'd be willing to pay 99 cents to watch it, then they probably already have a season pass scheduled to record it! And if they didn't, it wouldn't take them too long to figure out that if they did set it to record they wouldn't have to pay anymore!

Oh and the On-Demand idea. Lots of TV shows for free, but now suddenly you have to start paying for shows!

Two examples of the old "used to be free but now it costs money" business model. That ALWAYS works! I don't think it will be long before NBC and CBS are on iTMS.

To even compare these two things is totally wrong. For one thing, as others have noted, why would I pay for this service when my PVR can just snag these programs and then I can watch them on my own time? I guess perhaps it would be handy if my PVR went kaput (happened a few months ago, lost a bunch of stuff I'd been holding onto for awhile) or something. I'm mostly annoyed because when I saw "NBC", "Challenge" and iTunes in the same sentence I assumed I was going to be able to finally download Battlestar episodes in a legitimate fashion to my computer. I guess the frustrating thing about this is that people are going to put these programs online anyway, on various file sharing mediums, why not try and actually get some of them to pay through iTMS? I know most of the people I'm friends with who currently get TV programming online that way would love to save themselves the hassle of digging around for a particular show and give apple $2 or even more for the convenience of the iTMS.

Also, its super lame that they're going to include some way to make me watch commercials. If you're making me pay, charge what you need to charge so that I don't see commercials, or I simply am not interested.

Hey I'll gladly pay Comcast to watch commercials! I love Comcast and I will happily accept any opportunity to give them even more of my money!

I was SO looking forward to shows like Scrubs and The Office to make it to iTunes. Now, instead of getting in early, they're trying some other business model, delaying the near certain success of the iTunes download model.

Go figure.

Er, where is the beef? We don't even know if there is a market yet.

Companies like Cox and Comcast should join in on this too.

1) If someone's gonna pay a dollar, they may as well be able to keep the purchased content. Once they allow that..

2) Subscribers would install a program on their computer which would link the cable box to the PC\Mac without any problems (The Cable box should have WiFi\Ethernet connections and would search & join the workgroup). Once installed, the person would turn on the TV, pay 1 dollar for the show, and have it readily available to watch on their TV as well as on their computer. In addition, the user can buy shows on their computer and have it show up on the TV's Purchased Show list.

Note that this is only for people without the knowledge of PVRs and recording things. I have MCE'05 and I already record my own shows, so this would benefit me in no way. Most of the money would come from non-technologically advanced customers who don't even know what PVR stands for.

Meh, maybe i'm just babbling on.

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Small White Car wrote:
Just because they're doing this doesn't have to mean they're challenging iTunes.

I would not be at all surprised to see all the networks offer something like this AND put themselves in the iTunes store over the next few months.

I TiVo, my favorite programs for viewing later, but a couple of weeks ago, TiVo recorded all black because my crappy (being kind) RCA DirecTV satellite reciever was playing stupid (a common occurance). So I missed the program. I would have gladly paid $0.99 or $1.99 for this episode if it was available, but it wasn't, so Bit Torrent to the rescue. It took 2 whole days (I had to download the program, figure out how to use it, wait forever, download a player program), but at least I didn't miss the episode. I dumped Comcast because the service was worse and the prices higher.

Apples are declared the most successful fruit! Analysts cite the success of the Red Delicious, Granny Smith, Golden Delicious, and of course McIntosh along with the oft-debated "halo effect" of the pie as a factor contributing to the declining sales of the beleagured Orange. Oranges such as the Navel, Sour, Blood, and Blanca varieties have been seen as direct competitors to the fruity red newcomers with these same analysts all agreeing that only one fruit can win the war in your grocer's showcase.