HBO Programming Going to iTunes After Pricing Agreement

05/20/2008 05:12 am ET | Updated May 25, 2011

Time Warner (TWX) pay channel HBO has managed to crack Steve Jobs' stranglehold on iTunes pricing. Sources tell Portfolio that Time Warner is set to announce an iTunes deal for HBO that gives it what other content partners have longed for, but never got -- the ability to sell its stuff at different prices.

HBO sources say the new deal, set to be announced "in a week or two," allows HBO to set different prices for TV shows than the standard $1.99 per show rate. Not explained: Whether HBO will be moving its wholesale prices around as well, and what happens to Apple's (AAPL) gross margin on each sale (it generally keeps about a third of the retail price for each video and music single it sells, though movies are a different story).

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