This agreement between Apple and Fox comes after NBCU; the largest provider of iTunes television downloads refused to renew its contract with the software company over a disagreement in download pricing. NBC was looking to raise the prices downloads for its popular shows on iTunes, where Apple has maintained that it will keep the consistent and low price of $1.99 of video downloads.
The thinking behind this new offering is that the first free download will attract a larger audience to popular Fox shows, sparking an interest to pay to download the rest of the season.
Fox executives have stated before that the content provider should ultimately be in charge of pricing, however, Fox would not abandon Apple over pricing. At least not yet.