The old-Media fogies don't want to update their ancient business models. They don't realize that they aren't competing against landfill-choking paper and CDs, but instead bit torrent.
It is easier to torrent a copy of a DVD that I own than it is to rip it, and use it as I want - on my iPad - which would be illegal if I lived in America!
I would pay an extra dollar above the Newspaper, Magazine or DVD price if I could also download a digital copy to enjoy on my iPad. I would also pay a fair price for digital content without hardcopy - but it has to be dramatically cheaper than hardcopy.
Or why not make a digital TV show free if it has the original advertisements that you can't skip - just like on TV?
I think Apple is right, a buck for a TV show is the right price.