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Old 01-28-2006, 12:24 PM   #1
Colin Dunstan
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TV networks snag huge slice of iPod pie

According to research analysts at JPMorgan Chase, TV networks have been able to cash in big on iTunes video downloads of primetime series such as Desperate Housewives, CSI, and Lost. The Hollywood Reporter writes:

The content owners take from downloading is nearly the same that a commercial-fee TV series episode generates from a DVD boxed set, according to Nielsen Entertainment analyst Larry Gerbrandt, who has done the most exhaustive analysis of on-demand program economics to date.

Of every $1.99 in iTunes download revenues, the networks are making 70%, or $1.44. Between bandwidth, iTunes infrastructure, credit card fees, the studio's cut, and royalties paid, I wonder, what's there left for Apple?

Related: Mobile video is about to explode, Mobile TV is gaining viewers, The state of Mobile Video

[via Gizmodo]
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