Apple wants to slash the price of TV downloads such as NBC’s ‘Heroes.’

Apple is mulling a plan to cut the price of TV show downloads in half — an idea that’s fuming Hollywood.

According to three people familiar with the proposal, Apple has told networks and studios that it would like to slash the cost of most TV episodes sold via iTunes from the current $1.99 to just 99¢ — the same as what Apple charges for most music singles.

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).

Apples uses the same sales pitch every time that they will end up making more money from digital downloads under the new proposal. Company believes the volume of sales for TV shows will rise dramatically, offsetting the impact of the price cut.

They admit that it doesn’t make sense to charge the same amount for an episode of “The Brady Bunch” as for “Lost.”

This is what KOAR proclaims — it doesn’t make sense that iTunes charges the same amount for a successful downloaded Pink track as for a Cher song released in the 1980’s. Its a warped mentality with no business sense. Its killing artists’ profits and it scorns achievement. Any artist should be fuming…
But of course Apple has proved to be resistant to multiple price points for video downloads, preferring to keep things as simple as possible.

Oh Yeah, really simple!

It seems possible Apple and the nets will come to a settlement in which shows are sold via tiered pricing, perhaps 99¢ for library titles, $1.99 for current hits and $2.99 for megahits or shows on premium cablers such as HBO or Showtime.

While big networks and studios seem to be scoffing at Apple’s proposal, some nets could welcome the idea NBC like major music labels wants more pricing flexibility rather eglatarian price structure of 99 Cents.

Bottom Line: Since the CEO of Apple Steve Jobs embraces the egalitarian price system where “all units are priced equal’ — he should stand up to his principle and have an egalitarian pay structure within Apple. Steve Jobs would make the same salary as his executive assistant all the way to the janitor. That is basic logic. Do we have a double standard here? We sure do ladies and gentlemen.

Apples argument is that if all things are priced equal then the volume will rise off setting the impact of the price cut.

We will use the same argument. If Steve Jobs embraces the egalitarian pay structure within Apple — then the employees all the way to the janitor will be more motivated to work, thus increasing Apples total bottom line off setting Steve Jobs price cut. That means Jobs could be making more money. Do you buy it?