There are 26 episodes for Season 1, that would come out to $77.74 for the season...
Not defending the price, just clarifying -- there is a "Season Pass" for $69.99. So you save a little. Not a lot, but a little. You can also rent the episodes for .99¢ too.
Apple TV, or Itunes, it doesn't matter. The model doesn't work. They made their bones on music and now apps, but trying to copy this model directly over to TV again doesn't work.
The price point is obviously too high per episode and really, rent an episode? If purchasing the episode was $.99 then it would be a better model. That's why it worked for music. Even though it worked out to cost more per song to buy each song on an album, than buying the whole album, people liked having to only buy what they wanted.
Since TV is more serial now than ever, most people don't want to buy individual episodes, but would rather buy a season. So really the only way to make the model work is to make individual episodes cheap to entice buyers.