Apple TV Show Rentals: Was 99 Cents Too Expensive?

In 2010, Apple announced the ability for Apple TV owners to rent television shows for $.99, the price of most iTunes music downloads. CEO Steve Jobs explained that the pricing was intentionally aggressive, and that the company would make revenue on the volume of rentals. This past week, however, Apple deleted all options for renting television shows, shuttering a rental service that only Disney and Fox had signed on for in the first place. Apple TV owners can buy shows for $2.99 each. So was the rental service shuttered for lack of consumer interest or a because of technical issue with the upcoming iTunes in the Cloud? An Apple spokesman told All Things D's Peter Kafka, who broke the story, that Apple was following the consumer trend. "iTunes customers have shown they overwhelmingly prefer buying TV shows," Apple spokesman Tom Neumayr said. Fox corroborated the story by saying it hadn't seen much traction, telling Kafka that the best model for its consumers was to purchase content.

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