News Analysis
Will Apple New TV Offer 'a la
Carte' Pricing?
By Swanni
Washington, D.C. (December 29,
2011) --
Is Apple planning to offer 'a la carte' pricing for ordering
programming on its new company-branded TVs?
That's the buzz of the day after Wall Street analyst Shaw Wu
issued a note to investors saying that Apple might let viewers
subscribe to specific channels or shows rather than buy a
package of channels, as is required by cable and satellite
operators.
CNET notes that Apple already offers individual TV shows for
purchase at its iTunes store. But Wu seems to think that Apple
is trying to persuade programmers to offer their entire channels
as individual subscriptions. In that scenario, a consumer would
only pay for the channels he or she wants to watch rather than
buy a package of channels which might include numerous channels
the viewer would never watch.
Cable and satellite operators have said over the years that a la
carte pricing is unrealistic because it would mean that only the
most popular channels would survive because the majority of
viewers would order them and ignore the niche channels.
However, the niche channels are popular with small but
enthusiastic audiences and any move to eliminate them would
likely create a backlash.
Further complicating an effort by Apple to launch a la carte is
that the programmers would have to be convinced that it would at
least keep their revenues at the same level, much less see them
reduced. For programmers such as NBC and Turner, which own
multiple channels, including some niche channels, a la carte
could hurt their revenues because it could mean less revenue for
the niche channels.
Another potential obstacle: Apple has yet to launch that
much-anticipated company-branded TV. Some analysts have said it
could be forthcoming in 2012.
