Apple TV would 'jeopardize' shows

Speaking at the Royal Television Conference in London this week, Time
Warner CEO Jeff Bewkes said that 99-cent rentals of his company's
television shows makes no sense as far as the bottom line goes.
"How can you justify renting your first-run TV shows individually for
99 cents an episode," Bewkes said, according to the Hollywood
Reporter. He added that doing so could "jeopardize the sale of the
same shows as a series to branded networks that pay hundreds of
millions of dollars and make those shows available to loyal viewers
for free."
Time Warner isn't a slouch in the television business. Its
programming, including shows from subsidiaries HBO, CW, and Turner
Broadcasting, could benefit the Apple TV in a big way. Regardless,
Bewkes said that for the Apple TV to even come close to attracting
media companies, it will need to offer two key features.
"They must provide consumers with a superior TV experience, and they
must either support or improve the overall economics that funds and
creates the programming in the first place," he said.
Bewkes' comments echo those made last week by NBC Universal CEO Jeff Zucker.
Speaking at the Goldman Sachs investor conference, Zucker said that
his decision to keep NBC content off the Apple TV was based in his
perception that 99-cent rentals would "devalue" his company's content.
When he first announced the Apple TV at the beginning of September,
Steve Jobs acknowledged that his company was having trouble coaxing
studios and networks to join the rental program. But over time, Jobs
said, he expects that they "will see the light and get on board with
us."
The Apple TV is a set-top box that streams rental movies and TV shows
and includes iTunes, Netflix, and Flickr support. According to Apple's
Web store, the $99 Apple TV will ship to customers in two to three
weeks. Apple has already started shipping devices to those who
preordered the set-top box.