Apple drops 99-cent iTunes TV show rentals

Apple's (Nasdaq: AAPL) decision to remove the ability for iTunes users to rent TV episodes could bode well for free, video-on-demand platforms and TV Everywhere websites from cable operators.

Last week, Apple said iTunes users who want to watch TV shows would only be able to buy individual episodes from major broadcast and cable networks for $1.99 apiece. The company downplayed the move, noting that most iTunes users preferred buying TV shows anyway.

Removing the option for consumers to rent individual episodes of TV series online could help drive demand to free VoD platforms from Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC), Verizon (NYSE: VZ) and other major pay TV providers that have deals with CBS, NBC and other networks. Apple's move could also drive interest in TV Everywhere online video sites such as Comcast's Fancast Xfinity TV, which allow cable subscribers to access TV shows and movies from networks that they subscribe to.

The iTunes news also comes soon after Fox decided to limit access to online videos from its hit TV series to authenticated pay TV customers.

For more:
- the Wall Street Journal has this story (sub. req.)

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