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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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Old 01-28-2006, 12:46 PM   #2
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Can you imagine if the same split were used for electronic sales of mobile device software, or e-books? Everybody and their brother would be getting into software development and e-books!
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Old 01-28-2006, 02:38 PM   #3
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Quote:
Originally Posted by Colin Dunstan
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?
What's left for Apple is to maintain their market lead in music/video mobile hardware. I'm hoping that mobile video's takeoff drives creation of higher capacity iPod's from Apple. I can use a 100-120GB iPod for all my music and hard drive backups. What happened to Let's Get Perpendicular! ?
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Old 01-30-2006, 12:15 PM   #4
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What's left for Apple is not much, tough in the last quarter analyst call they did say that iTMS was doing better than break even. Not by much, most people think.

And the RIAA says they want more.

Kinda explains Jobs' "greed" comment, doesn't it?
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