Apple's Gift To Hollywood: $280 Million In iTunes TV Sales (AAPL)
Apple's newest milestone: It says it has sold 200 million TV episodes via iTunes in three years. It doesn't provide a breakdown, but we will assume that the majority of those sales went to NBC and Disney -- NBC has said it accounted for the majority of video sales at Steve Jobs' store, and last March, Bob Iger said Disney had sold "40 to 50 million" TV shows there.
So what does that mean? In the big picture, in the present tense? Not much, really. Video sales on iTunes have grown much more slowly than music sales did, and they're not nearly as significant for the networks and studios. If you assume that each of those 200 million went for $1.99, and that the networks/studios keep about 70% of each sale, you're looking at about $280 million in 36 months. NBC Universal, meanwhile, just recorded $645 million in profit in the last quarter.
Still, that $280 million is almost all profit for Hollywood. And given that the ad business is going to be in the dumps for quite some time, it's certainly nice to have additional revenue streams. Now you see why Jeff Zucker was willing to make peace with Steve Jobs this summer.




"So what does that mean? In the big picture, in the present tense? Not much, really. "
http://tvbythenumbers.com/2008/10/15/nbc’s-tami-mostly-worthless-but-itunes-downloads-are-hugely-insignificant/6330
If you look at the NBC TAMi report yourself, note the NBC downloads numbers. The first show in each season was typically offered free for the first two weeks. The subsequent episodes were not. Note the disparity in the downloads numbers. I doubt those 200 million were all sold at $1.99.
Mogilny: My hunch is that networks are already touting the fact that their shows are popular iTunes downloads: "People PAY to see this stuff - don't you want to get in front of this audience". It's win-win for them for now: The tiny iTunes-buying audience compliments the much larger freeloaders.
Still, to be honest I think those numbers are great.
Comparing them to Global DVD sales is ridiculous.
It is a growth industry, and so far I'm lovin' it.
Say you started pricing TV shows DECENTLY, considering that all this stuff is avaiable for free on tv (with commercial interruptions) and totally free on p2p and no matter what they do they won't stop it...
How about big tv prices NON-DRM episodes, for $0.25 and makes it really really easy to download. Partner up with every p2p company, and implement a payment system.
You won't get 200million copies, but a lot of people would probably buy 25 cents episodes. You'd see a whole season for less than $3.
Say now, you get 1/4 of those 200 million, that's 50 million times 0.25 = $12,500,000 a month.
It's probably peanuts to big tv, but guess what, you're making ZERO from that audience right now.
You make that happen, and those numbers will grow, think of ubiquitous internet, more people accessing these networks from anywhere, wanting to see their shows not only whenever they want, but wherever they want (The WHEN factor should be proportional to the WHERE) which would mean getting those numbers up.
Get with the program big media, the game is not the same anymore, and it only keeps changing.
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