updated 11:05 am EDT, Fri September 17, 2010
CEO worries about sales of full seasons
Warner Bros. is not participating in 99-cent iTunes TV rentals for several reasons, the Associated Press reports. Speaking at a Thursday investor conference hosted by Merrill Lynch, studio CEO Barry Meyer explained that Warner considers the 99-cent price too low. Rentals would also hurt sales of full seasons, the executive claims.
"We just don't think the value proposition is a good one for us," Meyer elaborated in an interview at the conference. Warner continues to sell individual TV shows at iTunes as well as season sets. Also sticking to that strategy are several other networks, including NBC and CBS. Only ABC, Fox, Disney and BBC America are so far on board for the new rental scheme.
The TV industry reaps significant income from DVD season collections, to the extent that previously canceled shows such as Family Guy and Futurama have been brought back. Video traffic at the iTunes Store has always been marginal, however, which 99-cent rentals may be intended to address. Apple generates most iTunes revenue through music and apps.