iTunes Ropes In All Four TV Nets for High-Def Downloads

The iTunes store has had various fits and coughs over the last few years as content providers from the music, movie and television industry battled it out with Apple (Nasdaq: AAPL) over delivery and pricing quibbles. However, the fall network TV season is now intact -- and in the full glory of high definition.

All four of the major networks -- ABC, CBS, NBC and now FOX -- are offering prime time programs in high definition via iTunes downloads, Apple said.

The Fall 2008 TV lineup includes 70 prime-time comedies and dramas offered in HD, according to Eddy Cue, Apple's vice president of Internet services. More than 200 million episodes have been sold for viewing on computers, iPods, iPhones, or on TVs via Apple TV, he added.

Most television shows that are broadcast in high definition are delivered in 720p, versus the even sharper 1080p. iTunes is no exception, delivering the shows at a 720p resolution.

Name Dropping

If Apple's 200 million episodes figure is accurate, that makes it the world's most popular online TV store. One million have been HD versions, which first started popping up on iTunes last month.

What are all these hot fall shows? The iTunes library includes "Grey's Anatomy" and "Lost" from ABC, "CSI" and "CSI: Miami" from CBS, "Bones" and "Prison Break" from FOX, as well as "Heroes" and "The Office" from NBC Universal.

In addition, iTunes sells shows from more than 70 cable networks, including Bravo, Comedy Central, Disney Channel, ESPN, FX, HBO, MTV, Nickelodeon, Sci Fi, Showtime and USA. Standard definition television shows on the iTunes Store are US$1.99 per episode, while HD programs from ABC, NBC, CBS and FOX are $2.99 per episode. However, Apple notes that many series offer a season pass option that lets customers purchase entire seasons at a discounted price.

To make it easy to differentiate HD from standard-definition programming, Apple has created a handy button that lets users limit their selection to HD shows that are ready to buy.

The Rise of Two Digital Delivery Worlds?

So far, Apple has stuck to its delivery model -- buy the shows for $1.99 (or $2.99 for HD versions) -- and that's it. Apple doesn't provide any streaming capability, nor does it offer free, ad-supported shows for either streaming or downloads.

With television having a rich history of free, over-the-air broadcasts and shows supported by embedded television ads, can Apple's model enjoy a long life? Or might it eventually succumb to the likes of Hulu, the networks' own sites, and now CBS and YouTube, all of which stream the shows free to consumers who are willing to sit through a few video ads?

"Ultimately, this is a lot about licensing and clearances for the networks and studios, but I think for the foreseable future, we're going to see both," Mike McGuire, a vice president of media research for Gartner (NYSE: IT), told MacNewsWorld.

"But is direct payment for an individual show a long-term thing? I don't know," he added.

For now, McGuire said the two models serve distinctly different audiences. Apple iTunes has an HD option available, plus it lets consumers take shows with them while traveling without Internet connections. Some consumers, though, may even use three methods as they forage for TV content: traditional TV, online streams and iTunes downloads.

"What we're seeing is the networks are realizing that, ultimately, they have to be able to deliver in multiple ways," McGuire noted. "It took them a while to get there, but they're now there."