Apple Strikes Content Deals With TBS, Warner Bros.

Apple (Nasdaq: AAPL) is on a roll with securing video content agreements to flesh out its iTunes Music Store lineup. The iPod maker has struck several deals recently, including significant agreements with Turner Broadcasting System (TBS) and Warner Bros.

On Monday, Apple announced a programming deal with TBS that adds programming from CNN, Adult Swim and Cartoon Network to the mix. The new content makes content such as "Johnny Bravo" and original episodes of the award-winning documentary series "CNN Presents" available for US$2 each.

Last week, Warner Bros. teamed up with iTunes to offer viewer favorites such as "Friends" and animated classics like "The Jetsons," along with a slew of other programs in its vast television library.

Expanding Library

"Making our television content available to iTunes consumers is an important step in our digital distribution strategy," said Simon Kenny, president of Warner Bros. Digital Distribution. "This deal fits perfectly with our philosophy of providing consumers with access to our world-class entertainment properties across the widest selection of platforms and devices available."

iTunes' growing content lineup now includes more than 150 TV network and cable programs.

In late July, Apple added several weekly episodes of E! Entertainment's hits series including "The Girl Next Door," and "The Soup." Apple also struck a deal with MTV Networks last month to peddle programming from Spike TV, Nick at Nite, TV Land and MTV.

"When Apple started iTunes, I heard people ask why anyone would pay for TV shows when they can get them for free. It didn't necessarily make sense," JupiterResearch analyst Joe Wilcox told MacNewsWorld. "But just go to any place that sells DVDs and look at how big the television section is. People will pay for TV shows."

Content providers see the allure of iTunes. The store has already sold more than 35 million videos. The overall market for video downloads, though, is even more alluring, according to analysts.

Paying for Content

Meanwhile, customers are demonstrating that they are willing to pay, rather than wait, for content.

"There are a number of ways you can look at television content. Some see it as broadcast. They want people to watch it and see the commercials. That pays for the programming. They see that as the main channel of delivery and think that's where it should be contained," Wilcox noted.

"There's also another way to look at it -- from the perspective of enthusiasts," he continued. "For certain shows, like a '24' or 'Lost,' where missing an episode can be detrimental, having the ability to download occasional episodes can be important to viewership."