Fox Entertainment Group (FEG) and Apple Computer Inc., of late announced hit television programming from FOX, FX, SPEED, FUEL TV and 20th Century Fox Television library is now available for purchase on the iTunes Music Store.
From a pure revenue standpoint, it is not that big a deal, given the size of Apple and the profitability in the iTunes business, said American Technology Research analyst Shaw Wu. "As Apple has said, iTunes is slightly above break-even."
The new Fox programming features 16 series including "24," "Prison Break" and "The Shield," is the largest network debut to date on iTunes and spans current hit programming from the drama, comedy and reality genres, plus several classic favorites. iTunes now offers over 90 TV shows for $1.99 per episode for viewing on a computer or iPod.
The additional content helps Apple to round out its iTunes offerings, but it is not a significant source of revenue. Apple makes most of its profits on the sale of its hardware.
We are thrilled to offer such a wide range of hit programming from Fox Entertainment Group on iTunes, said Eddy Cue, Apple’s vice president of iTunes. Customers can now download smash hits including ’24,’ ‘Prison Break,’ and ‘The Shield’ from the world’s most popular online video store for viewing on their computer or iPod.
Broadcasters are pursuing younger audiences who often get entertainment on the go with devices such as Apple’s iPod, using digital download or video-on-demand services. ITunes allows downloads for computers or iPods.
Apple has sold more than 25 million video downloads at $1.99 each, including TV shows and music videos, since it began the service last October.
Fans can now purchase current dramatic hits including FOX’s "24" and "Prison Break" and FX’s "The Shield;" comedies, including FX’s "It’s Always Sunny in Philadelphia," and FOX’s "Stacked;" reality series, including FOX’s "Unan1mous," FX’s "Black. White;" "30 Days;" and favorites from the 20th Century Fox Television library, including "Buffy the Vampire Slayer," "Firefly" and "Lost in Space." Additionally, the Fox programming will feature a variety of specialized programming from SPEED, including "Pinks," "Unique Whips" and FUEL TV’s action sports diary "First Hand."
Sales of music, videos, iPod service and third-party iPod accessories accounted for 11 percent of Apple’s total revenue of $4.36 billion in its most recent quarter.
Walt Disney’s ABC, General Electric’s NBC, and CBS Corp. sell shows on iTunes, and redistribute some programming by other means over the Internet.
CBS’s most popular shows, such as CSI, are unavailable on iTunes, but ABC’s top shows, "Desperate Housewives" and "Lost", can be downloaded. So far, CBS has only offered some sports content on iTunes.
ABC is experimenting with free online hit shows like "Desperate Housewives" and "Lost" that require viewers to click through advertisements. But often, online shows offer the option of watching without commercials.
With Apple’s legendary ease of use, pioneering features such as integrated video and Podcasting support, iMix playlist sharing, seamless integration with iPod and groundbreaking personal use rights, the iTunes Music Store is the best way for Mac and PC users to legally discover, purchase and download music and videos online. The iTunes Music Store features a selection of over 9,000 music videos, Pixar and Disney short films, a variety of hit TV shows, and more than three million songs from the major music companies and over 1,000 independent labels.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.
"As this partnership demonstrates, we are committed to delivering our content to consumers in as many ways as possible," said Peter Levinsohn, president, Fox Digital Media. "Today, with some of the world’s premier television content, Fox is bringing unprecedented depth — in a single launch — to the iTunes Music Store."
James Gianopulos, co-chairman of News Corp.’s Fox Filmed Entertainment, had said Fox would be open to a deal with iTunes during the Reuters Media and Advertising Summit last December.
Pricing and Availability
iTunes 6 for Mac and Windows includes the iTunes Music Store and is available as a free download from http://www.apple.com/itunes. Purchase and download of songs and videos from the iTunes Music Store requires a valid credit card with a billing address in the country of purchase. Television shows are available in the US only, and video availability varies by country. Television shows are $1.99 (US) per episode, and music videos and short films are $1.99 (US) each.