FOX will keep their shows on iTunes

The fair price that Fox et al. should determine is what they want Apple to pay them; what Apple wants to charge consumers is up to Apple--if they want to lose money for a time in order to promote more profitable iPod sales, that's their affair.

Unfortunately, a Supreme Court decision earlier this year established that there are permissable circumstances for wholesalers to dictate minimum retail prices to retailers. Now, Apple itself has always maintained Minimum Advertised Prices for its products, but this is a different system that depends on voluntary enforcement backed by greater benefits from Apple to retailers who agree to follow the policy. Now it's legal to penalize retailers who sell for less than the manufacturer directs them to--ostensibly, this "protects" retailers who invest in supporting customers against predatory low-service competition. But it also protects inefficient retailers from more efficient competitors.