HBO Wins Better Deal From Apple

Author:
Updated:
Original:

Time Warner Inc.'s HBO cable network is thisclose to reaching a deal to have its programming delivered through Apple’s iTunes. Portfolio broke the story this morning, noting that when the deal is announced it will be the first time Apple agreed to a different price structure for a content provider.
The details are still vague, but HBO apparently got a better deal than other content providers. "One possibility is that HBO programming will have a higher retail price than the flat $1.99 fee Apple currently charges for video content; another is that HBO will receive a larger cut of the same flat rate than other iTunes content providers receive," Portfolio’s Josh Saul writes.
Although both companies are likely to bill the agreement as a victory—Apple gets more content and HBO more distribution—the deal could inspire other content providers to seek better deals from Apple. Many of those who have struck deals with Apple are reportedly dissatisfied, arguing they should be getting better economics from Apple, which makes money both on the distribution of content through iTunes as well as the sale of iPods and iPhones.
HBO In Your Pocket [Portfolio.com]

Related