NBC Universal has decided not to renew its agreement with Apple's iTunes to carry NBCU shows on the download service, sparking retail retaliation from the computer giant.
In response to NBCU's decision, Apple today said it would not make NBC's new fall TV shows available for download from iTunes. NBCU said it won't pull its existing content from iTunes until its current two-year deal expires in December.
According to Apple, NBC supplied iTunes with three of its 10 best-selling TV shows last season, accounting for 30 percent of iTunes' TV show sales.
NBCU's decision comes as the media giant prepares to launch its own online video venture in partnership with News Corp. Dubbed Hulu, the joint venture is slated to go live this fall with TV shows from Fox, NBC and others.
NBCU's decision also suggests that media companies will increasingly want to control the distribution of their content in the digital age, rather than solely rely on online stores, such as iTunes.
Apple said NBCU's decision came after Apple declined to pay more than double the wholesale price for each NBC TV episode, claiming such a move would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99.
While NBC was not the first network to ink a deal with iTunes, it's been one of the most successful. The popularity of iTunes downloads of “The Office” played a role in driving on-air ratings for that show.
Updated: 8/31/07, 1:34 p.m.
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Comments (3)
As alway's NBC will learn when it's to late I have been saing for the last two years there done!! it's looking more & more like I was right you will see what I mean tring to make with all thoes domb remakes of theres we will see. Dave-Detroit
Posted by Dave L | August 31, 2007 1:10 PM
I hope that Dave-Detroit was up very late writing his comment therefore very tired or very drunk (yea)! I am all for fair competitive company growth but I see current business practices going back to the 1950/60’s methods and mentality. Companies are trying to take on everything internally to “make more money”. Apple should genuinely feel undermined is they are the experts and spent the money to make their products and services a value add to everyone. NBC/NBCU should concentrate on producing more quality shows instead of entering into a new endeavor that now ended any kind of relationship Apple/iTunes will every have with them. The people that will have to pay for this will be us the end users. We will now have to go out and by a different player if we want to watch their shows. Hmmm more electronic crap we have to buy…more passwords we have to remember…
Posted by robin_chicago | August 31, 2007 1:38 PM
I'm sure NBC will come crawling back sooner or later. The customer is not on their side on this one. See this internet comic:
http://www.itgumbo.com/mumbogumbo/2007/08/apple_takes_ball_goes_home.php
Posted by leah | August 31, 2007 4:08 PM