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Variety: iTunes wants to cut prices of TV shows

Variety reports that Apple is looking at cutting the price of iTunes TV show downloads from $1.99 to 99 cents:

But entertainment companies don’t seem to be rushing to embrace the idea. Indeed, the half-price plan may have contributed to NBC’s decision last week not to renew its current deal with Apple (though if NBC had simply let its contract automatically renew, the current price of $1.99 would’ve stayed in place).

I remain puzzled by Apple’s pricing strategy. Why, when it has the ability to let all prices float according to what people are willing to pay, does Apple insist on flat pricing?

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