Apple’s 99 cent rental plan just isn’t getting a whole lot of love from TV execs. Yesterday it was Jeff Zucker and now Viacom and CBS aren’t exactly giving the new plan hugs and kisses either.
“The 99-cent rental is not a good price point,” stated Viacom CEO Philipe Dauman. “It doesn’t work for us.”
Viacom operates cable networks such as Comedy Central and Nickelodeon, and Viacom “invests heavily to produce its content,” notes Dauman. Viacom is looking to up its investment in original content.
“We value our content a lot,” said Dauman. “We don’t think Apple has it quite right yet.”
Over at CBS, CEO Les Moonves, is still being a bit wishy-washy about the subject. Moonves expressed compliments toward Apple, but wants to see how the other networks involved, fare first.
“What we said to them — and the Apple guys are terrific and obviously the application is terrific — is let us see what happens,” noted Moonves. “There are two networks in and two networks not in. Let’s see what happens and maybe we’ll talk again in January, maybe we’ll talk again next year.”
As for the networks that have actually agreed to the deal so far, FOX and ABC, COO of FOX, Chase Carey said “I think we have to be willing to test some things,” and that they were willing to take a “short-term” risk on the rental plan.
Walt Disney Co. CEO Robert Iger wants his company to be a leader in adopting digital technology. “We made a decision five years ago — actually when I got this job — that we would be much better off aligning with technology companies than fighting them,” he said.
“We think the rest of the studios will see the light and get on board pretty fast,” noted Apple CEO Steve Jobs on September 1st.
Time will certainly tell!
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