NEW YORK (Reuters) - Time Warner Inc's HBO cable network is expected to start selling shows on Apple Inc's iTunes digital entertainment service, with flexible pricing, a source familiar with the discussions said on Monday.


Episodes of some HBO shows are likely to be sold at more than the standard price of $1.99 per episode, the source said, marking the first time Apple has agreed to selling content at different prices in the United States.

Although some global iTunes stores, including Japan, already sell songs at different prices, Apple has resisted offering music or television shows at different prices for the sake of simplicity for consumers.

But studio and music company executives have pushed for variable pricing, such as the ability to sell some content at lower prices and new releases at higher prices, which they believe would improve sales from its older catalogs.

Representatives of HBO and Apple were not immediately reachable.

The news was first reported by Portfolio.com.

(Reporting by Kenneth Li; editing by John Wallace/Jeffrey Benkoe)
© Copyright 2007 Reuters.

Update:
HBO Shows officially on iTunes.