Apple vs. NBC: Touché
Apple’s feeling a bit feisty this morning. Sure, the company’s looking forward to next week’s special event. But I’m talking about the latest comments on a particular iTunes Store partnership (or soon-to-be-ex-partnership, as the case may be).
Back in July, we learned that Universal has decided not to continue a long-term arrangement with the iTunes Store. Apple probably wasn’t happy about that move, but their public comments were, well, cordial. But then came speculation that NBC might pull their TV shows from the Store. It looks like those rumblings were true, because this morning Apple sent out a press release. And from the looks of it, Steve Jobs is none too pleased.
You see, NBC’s agreement with Apple ends in December. But Apple has decided that they’ll just stop selling NBC shows in September—before the fall season, perhaps the most profitable one for TV-show sales on iTunes, begins. Ouch. On top of that, the company went public with details about pricing negotiations.
Allow me to share a couple choice quotes from the press release:
Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
Apple’s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September.
Although losing NBC shows is Not A Good Thing—the press release noted that three of iTunes’ 10 best-selling shows last season, accounting for 30 percent of TV show sales, were from NBC—it’s obvious Apple is trying to make NBC look like the greedy bad guy. And if I were the cynical type, I might interpret the move to stop selling NBC shows three months early as some sort of, well, gesture.
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Comments (7)
Good for Apple! I'm glad they decided to stop NBC shows before the new season.
If Universal wants to shoot themselves in the foot, by all means, who is Apple to get in the way.
All this means is that people are going to be getting their TV shows off of BT "airlines" instead of through iTunes. I really doubt that anyone will go running to NBC's website to watch episodes with tons of commercials in between the segments like regular TV has.
Posted by Dave M. | August 31, 2007 1:18 PM
Imagine how much more important this would be if NBC wasn't a crappy 4th place network.
Posted by Bobby | August 31, 2007 2:12 PM
With any luck, this will serve as a warning to other clueless content providers. It's like sticking the NBC CEO's head on a pike at the city gates.
Posted by Tom B | August 31, 2007 3:03 PM
This is great news!!!! I get so tired of these crappy media companies trying to sell us junk at increasing prices. This is exactly what Apple should do in the EU also if they don't back off this force open the iPod iTunes crusade.
Can't wait to read the Fake Steve Jobs report on this :))
Posted by Jay | August 31, 2007 5:07 PM
Oh no.
What will I ever do?
I have HD cable with an HD Digital Recorder. Even so, I bought "The Office" and "Heroes" for convenience and to have those shows available on my iPod/iPhone.
I'll now have to SET MY DVR TO RECORD THOSE SHOWS EVERY WEEK.
How will I ever manage? But more importantly, how will I spend those dollars NBC used to get from me?
Nice move, NBC.
Posted by kevingossett | September 1, 2007 2:08 PM
An Open Email to NBC Universal
http://www.stonethembas.com
Posted by unclepaul | September 1, 2007 6:21 PM
OK, this is a no brainer now. El Gato's eyetv can record all of these for a one time cost of $129 and record them in HD if I want. While it is nice to get a season pass, this will definately be better as I can record anything else as well. The commercial skip on the eyetv will bypass the ads while I watch... and if my neighbors manage to find the shows on my minimac server, good for them.
I for one appreciate it that Apple is protecting their customers from the greedy networks. iTMS prices are reasonable and I want to see them stay that way.
Posted by Wm. Cerniuk | September 3, 2007 6:50 PM