Well, yes and no. Lost Complete HD series on Amazon is $195:
http://www.amazon.com/Lost-Complete-...dp/B0036EH3WK/
There's 121 episodes, so at 99 each that's around $121. If you buy it on Bluray, you own it AND you get better quality. But - #1, 720p vs 1080p isn't that big of a difference (especially for TV shows), and #2, how many people go back and watch episodes over again? I'll rewind the show after I watch it to re-watch portions of the show sometimes, but that's about it - I don't go back months later and re-watch it. So for somebody who doesn't do Tivo and doesn't care about ownership, it might be a pretty good option. But then, you can also just watch it right off the Lost website...lol.
Most people I've talked to had the same reaction - "you have to pay $1 per episode? aww...". Dunno how well that pricing scheme will pay off. If it was $1 to rent an HD movie for 24 hours, now we're talking. That's an impulse purchase. The kids are screaming for Avatar, you're frazzled and don't want to go out, hit the button and boom, movie time. But TV shows have less value to us mentally. Plus, I can just go down to Red Box and get an actual movie for a dollar while I'm getting groceries.
I dunno. It's a tough pricing game. A lot of people pay $50 - $100 a month for Cable TV or Satellite/Dish TV. Even basic is like $20 - $25 a month. $20 a month gets you 20 TV shows. If you watch an hour of TV a night, that could be pretty nice on an AppleTV, and you'd still get your basic channels for free (news, etc.). You don't get as much variety as when you're piece-mealing it, but you do get exactly what you want, when you want it. I think people prefer the options that network television has to offer. If Apple could do something like that - $99 a month for unlimited TV shows and movies, for example - I bet that'd fly over pretty well. Like a Rhapsody or Napster for movies. But Netflix is already integrated into computers, Roku box, Wii, Xbox, and a variety of network players - so why not just stream from there?
It's a nice idea. I can definitely see my parents using it. But I think a lot of people will want an option that is cheaper or offers more variety for the money. iTunes has the ecosystem, they just need to market it right...