AfterDawn: News

Update: Apple talks out about NBC fallout

Earlier today we reported that Apple has prematurely dropped NBC Universal video content from its iTunes platform. There was rumors as to why the split occurred but Apple has finally responded, giving its reasoning for the drop.

During a press release this afternoon, Apple stated that NBC asked for a huge increase in the per-episode price of their TV shows. According to Apple, NBC asked to have the price raised to $4.99 per episode, compared to the current $1.99 per episode. All other major broadcasters are signed for the next TV season at $1.99 per episode.

"We are disappointed to see NBC Universal leave iTunes because we would not agree to their dramatic price increase," said iTunes VP Eddy Cue. "We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers."



Apple also said they were dropping NBC Universal immediately instead of waiting until their contract ends in December. Apple also said that NBC owned 3 of the top 10 most downloaded shows and accounted for almost 30 percent of all TV show sales.

Source:
Dailytech

Written by: Andre Yoskowitz @ 31 Aug 2007 13:27

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• 16 comments

• ShoeBark

  I'm very pleased with iTunes decision. $4.99 an episode/$100+ a season is absurd; that's a 250% increase! NBC has clearly shown how greedy they really are.

  31.8.2007 13:57 #1

• Pride1

  Good for Apple, don't let yourselves be bullied, your prices are great as they stand, if this were to happen i'd go to blockbuster where i'd rent a scratched DVD :P, thats why i love iTunes

  31.8.2007 14:26 #2

• Unfocused

  At least they (iTunes) has decided to make a stand. I hope that if they re-negotiate contracts with NBC that Apple insists that their shows sell for 99¢. That would really be a kicker.

  31.8.2007 14:37 #3

• dparri526

  Looks like its back to bittorrent for me.

  31.8.2007 15:24 #4

• webe123

  Originally posted by dparri526: Looks like its back to bittorrent for me.
  Agreed, using apple itunes store in the first place is a losing proposition.

  31.8.2007 18:32 #5

• fgamer

  Stupid ugly greedy big corps..always trying to clean the consumers pockets dry!!! At least Apple took a stand against the insane price hike

  31.8.2007 20:19 #6

• DVDBack23

  yeah trying to charge 5 dollars for an item that can be watched for free or ripped for free using a tv tuner is ridiculous...well done Apple for taking a stand.

  31.8.2007 20:57 #7

• justme81

  Originally posted by ShoeBark: I'm very pleased with iTunes decision. $4.99 an episode/$100+ a season is absurd; that's a 250% increase! NBC has clearly shown how greedy they really are.Hay now they are a distant 4th in rateings so they need the money so come on feel for NBC

  31.8.2007 21:16 #8

• akaangus

  4.99 an episode? What a joke!
  
  I can't find it but apparently one of the reasons NBC and Universal left iTunes was because Apple wasn't making it impossible to put illegal content on iPods
  
  NBC / GE telling Apple to stop people from putting "illegal" content on their iPods?
  
  Angry cursing alert:
  
  Are you fucking kidding me? Let's have everyone pay $4.99 for an episode of some shitty show... fucking I get paid just slightly more than that for an hours work after taxes, adjusted for commercials NBC wants more from me to watch their fucking bullshit than I get paid to work!
  
  Then when I want to put something LEGALLY fucking OBTAINED in Canada on my iPod (I have a Creative but I digress) they want that BLOCKED because it's suddenly "illegal"?
  
  What is this "ILLEGAL" fucking content? Last time I checked the only files that are ILLEGAL TO DOWNLOAD IN CANADA IS CHILD PORN. I highly doubt NBC is a crusader for this (worthy) cause.
  
  NBC and your executives, including every head-up-ass at GE, DROP DEAD.

  31.8.2007 23:07 #9

• duckNrun

  personally, even $1.99 is to high. When a season of a show downloaded from iTunes with all the DRM and reduced quality is roughly what a season bought on DVD costs I'll stick to the dvd.
  
  I still don't get why people pay roughly the same price for reduced quality media just for the 'convenience' of using iTunes. Only reason I see doing it is if I missed an episode and need it NOW. Of course since my friends pretty much watch all the same shows I do, even if I forget to DVR an episode I can still see it over there for free anyways.

  31.8.2007 23:46 #10

• Deadrum33

  I agree that shows shouldnt be overpriced, I think they are already.
  I think the real story here is Apple saying someone else wants to overcharge.
  No matter what product it is, from an Ipod to an Imac, Ishit when I see the price of anything with the Apple logo on it.

  1.9.2007 05:33 #11

• jetyi83

  agreed .. good decision on apple's part, not that the decision was made for the consumer, but it was basically a good business decision which will gain them some credibility which will definitely be profitable in the long run.

  1.9.2007 12:18 #12

• Gradical

  credibillity yeah right! go vote for them. the way i see it is just sharks eating sharks

  3.9.2007 21:47 #13

• DXR88

  O Look Steve Jobs Shit, Lets get it out of the toilet and sell it on ebay 2000 Grand

  4.9.2007 08:40 #14

• DXR88

  d0UblE p0St

  4.9.2007 08:46 #15

• borhan9

  What makes NBC think they are so special to have their price of their product at such a inflated price.

  9.9.2007 23:57 #16