Why is $1.99 too little for TV episodes?

You have to wonder what the executives at CBS and NBC are thinking. Shoot, even what they're thinking at ABC. On Amazon.com the first season of "Desparate Housewives" costs about $39 U.S. dollars, or about $1.69 per episode (less if you include special features in the cost). Apple charges $1.99 per low res episode that only looks good in a small window on your computer, or on an iPod screen. It's an easy bet that the anyone who buys the iTunes episode will eventually want to watch it on their TV. Even if someone breaks the DRM and makes it possible to burn the episodes to DVD the picture will be almost unviewable on a TV screen. Which means they will have to buy the DVD set for a decent picture. And if they're a real fan, they'll want the DVD for the extra features, too. That means the network gets to make money three times per episode (not counting syndication): Original airing, iPod version, DVD version.

Add to that the fact that the iTunes version lacks cost of pressing DVD's and distributing them and 1,000,000 videos have sold in 20 days, and putting episodes on iTunes seems like a no-brainer. Of course, network executives haven't always been noted for their intelligence.