A report in Variety magazine says that Apple is all set to slash the price of TV episodes on iTunes despite its much-publicized fallout with NBC over low pricing issues.
"Apple's argument to studios and nets has been that they will end up making more money from digital downloads under the new proposal," the report by Josef Adalian and Ben Fritz added. "Company believes the volume of sales for TV shows will rise dramatically, offsetting the impact of the price cut."
Last week NBC decided to sever its relationship with Apple and instead moved its digital downloads operation to Amazon.com's Unbox service.
Currently TV episodes sell for $1.99 on iTunes, but Apple's plan calls for slashing the price by almost $1.00. Under this scheme, it will sell TV episodes at 99 cents.
It is unclear how other TV companies will receive these plans. "According to three people familiar with the proposal, Apple has told networks and studios that it would like to slash the cost of most TV episodes sold via iTunes from the current $1.99 to just 99¢," the Variety report said.
Apple did not comment on the report.
