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Variety says the idea has not got down well with TV companies, who are thought to favour higher prices, and suggests that the half-price plan may have contributed to NBC's recent decision not to renew its current deal with Apple.

Apple believes cheaper downloads, not price increases, will make more money for TV studios.

"Apple's argument to studios and networks has been that they will end up making more money from digital downloads under the new proposal," Variety says. "The company believes the volume of

British viewers are getting an even rougher deal on the TV shows than their American counterparts, with shows priced at £1.89 per episode - almost double the US price.

But studios are concerned that cheaper downloads will cut into lucrative sales of DVD box sets. Apple might also have argued that increased iTunes sales will reduce video "piracy", since it is fairly easy to rip or copy a DVD, while Apple's FairPlay copy-prevention technology has proved remarkably resistant to hackers.

Entertainment companies' discomfort with Apple's prices is no secret; witness the absence of most Hollywood studios from the iTunes movie store, as well as NBC's withdrawal from the TV section.

But Variety notes that some studios may be amenable to lower prices, and where they go the others may be forced to follow.

"Cablers such as MTV or A&E may welcome the chance to sell their reality shows at a lower price, particularly since Apple would likely reward them with greater promotion on iTunes," Variety reports.

Disney-owned ABC may also be receptive, not least because Apple CEO Steve Jobs sits on Disney's board as its largest individual shareholder.

Apple declined to comment on the Variety report.