Apple Video and iTunes Pricing

Question

I think Apple released the new Video iPod recently rather quietly. While it did receive significant attention, the changes that will result from this seemingly quiet release will be tenfold.
Viewing size
The biggest complaint about the iPod video is that it is too small of a screen to watch anything. However, I'd wager a couple things about the people saying this. One: they've never seen this iPod up close in person. And two: that if they were stuck on a 3 hour flight to anywhere that they would love to watch their favorite TV show on such a device. Any device. Beggars can't be choosers and choosers don't have to beg.
Scheduling
For many, myself included, I just don't follow any TV programs. My schedule is so varied that I simply can't commit to being at the TV the same time every week. With the video iPod, I can gladly catch an episode or a string of episodes whenever or where ever I have some free time. How about while catching a quick lunch? Or while waiting for my tennis opponent to show up? Or any airport layover, bus ride, or train ride, etc. (Probably not during bike rides or driving though...I recommend watching video only when you don't have to pay close attention to what you're doing.)
All of a sudden, overnight, I'm able to catch up on shows on my own schedule. And as more and more shows and other content becomes available, the more I will likely follow in this manner. The market is growing.
Music comparison
Another thing the video iPod brings to the glaring spotlight is the ridiculous pricing of digital music. Each song costs $1.00 in the iTunes Music Store. (I know, it's 99 cents but let's be real - it's effectively one dollar.) Each TV episode costs just $2.00. That's $1 for a 4 minute song compared to $2 for a 45 minute, commercial free television video program.
Music companies are missing out on a ton of revenue because of this pricing. They are voluntarily cutting their own revenue due to greed and backward thinking. They could easily increase their revenue by at least 400% by reducing the price of each song by 75%.
Let me explain how.
This year I bought like 2 albums and maybe 2-3 songs. Let's call it an even 20 songs. 20 songs times $1/song. That's $20. I need to know a song or album is something I really like before I buy it. However, if songs were say, a quarter, this would not be the case. I'd hear a song on the radio and be like, "hey, cool song and it's only a quarter". I'd buy songs on a whim...probably daily. The same goes for albums. If I like a song I'd decide that I might as well pick up the whole album. It'd be only $3.50 or so. I'd buy one album week. Who cares if it's going to be one of my favorites!
So if we do the math for a year, $1/song x 20 songs = $20/year revenue. Compare that to the .25/song model. .25/song x 1/song a day (365 songs) = $91. Then add the one album/week at $3.50 which is $3.50 x 52 = $182. That's a total of $273.
Results
- $0. 25/song = $273 in revenue
- $1/song = $20 in revenue
So in my case, if they reduce the price by 75%, they increase their revenue by a whopping 1300%!! Wow! Some may say that at 25 cents/song they wouldn't cover costs. That's bullsh*t. This is the electronic model where everyone is working in percentages. If whoever (the artists, the label, Apple) gets x% of each song, they'll still get x% of each song, and therefore, the total. And x% of $273 is a LOT more than x% of $20.
Continued...

Answer 1

Hi.
iPods can only play MPEG-4 video files. For putting videos onto you iPod, you can manually drag-and-drop them, or sync them automatically. Also see this article for how to watch videos in iTunes.