Thanks Scott,
Just to clarify for others who may read this - the BBC does not own most of the shows it broadcasts but instead they have broadcast rights and have negotiated deals with content providers for the free catch-up service called iPlayer. The content providers require Digital Rights Management protection on the downloads which is why shows are streamed for free for 7 days after broadcast and downloads expire after 30 days. Some shows may not appear on iPlayer if the BBC can't obtain the rights and some shows may be limited to streaming only. The iTunes Store downloads are for keeps and maybe higher quality than iPlayer offer so a fee is charged. There is still DRM for these downloads but obviously it's less restrictive than iPlayer's.
Just to illustrate the point about rights, the series Damages (broadcast on BBC 1) is not in the BBC section of iTunes but is in the Sony section because download rights were negotiated between Sony and Apple.
I don't think it will do huge business but it should do enough to keep it going and of course the service may well evolve.
Once people stop confusing the free iPlayer catch-up service with a pay-to-keep service I think more people will realise that there is a place for BBC TV shows on iTunes and alternative download stores. As the catalogue of tv shows grows then the value and potential of the iTunes Store will be realised in the months and years ahead.
The first episode of Damages is no longer free on iTunes but I had downloaded it to see how the service works and what the quality was like. It was very good but I think I will only buy something if I really want to own an old gem or maybe if I get into a series and miss an episode on tv and iPlayer. Even at £1.89 it's still less than we might spend on a cup of coffee.
Here are the details of that download:
Duration: 55:40
File size: 593.7MB
Video codec: H.264
Audio: AAC stereo
Dimensions: 640X360