AT&T Tech Support 360Apple slaps back at NBC in iTunes spat
A disagreement between Apple and NBC Universal escalated Friday as Apple announced that it won't sell NBC's shows for the upcoming television season.
The move comes a day after The New York Times reported that NBC Universal would not renew its agreement to make its TV shows available for download on iTunes.
Apple said in a press release that the dispute over price came after the iPod maker "declined to pay more than double the wholesale price for each NBC TV episode."
This, according to Apple, would have boosted the per-episode price of NBC shows on iTunes from $1.99 to $4.99. The move by Apple is an attempt to preempt a possible NBC pullout when their contract 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," Apple said in its statement.
This is the second content supplier to reject long-term deals with iTunes over the issue of price. Universal Music told Apple earlier this year that it had chose not to renew it's long-term contract and would instead opt for a short-term agreement.
The fight appeared to be a minor dustup to James McQuivey, an analyst with Forrester Research, who said he began the day thinking the NBC pullout was going to blow over soon. He said Apple's response has changed everything.
"I thought that it would all be ironed out and wasn't that major of a deal," McQuivey said. "But Apple is sure directing a lot of blame in the direction of NBC. It makes everything seem much more final, which is odd given that Apple is totally dependent on NBC and the rest of the content creators to make their video playback devices, such as the Apple TV and iPod, valuable.
"If you don't have access to the top rated content, what's the point?"
Editorial note: I added more analysis to a new story that you can find here.
Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg.
December how that was going to work with new shows going on
past that. I think Apple is smart to preemptively remove those new
shows from iTMS, to avoid consumer frustration and anger that
would inevitably reflect on Apple.
Also, gives NBC suits a couple extra months to see just how much
this is going to hurt their bottom line ;)
they could justify having customers pay $4.99 for an episode
that can only be plaid via iTunes when the DVD that will later be
released will be about $40 for 30 episodes. Props to Apple for
sticking up for the consumer.
And I can't wait to see NBC's new video service..its going to be a
flop i know it and then NBC will come crawling back to Apple. It
will be amazing to see how much piracy of NBC shows will
increase. I can't wait to hear the numbers.
NBC you guys need to fire your executives and they wonder why
their network is in last place?
Here's my answer: V-O-L-U-M-E. Go see whats Apple's ITunes sales figure is, and then look at place like Zune Market place, Real etc... Apple is no. 1 at online sales.
People bought their IPods to listen and watch video which they can purchase and use EASILY. You think Zune purchase/backup/restore procedure is easy? think again!
NBC want to be greedy? fine, the pirate bay, mini-nova, Torrent Spy and dozens of other will surely be happy to serve the .torrent file few hours after a show has been aired (WAY faster than the 24 hours time Apple puts it in their ITunes store). With no DRM, great video and audio quality, who'll by from Microsoft (or it's "partners"), Real or anyone else the seasons? IPod (either iPhone, IPod Video) rules the market when it comes to video players, and stuff from MS won't be able to be play back. back to torrents...
No doubt, NBC executives ARE stupid.
per show was pretty pricey for a 30 minute show.
Now we find out that NBC was looking for something closer to
$4.99 a show. NBC needs to go to a detox center, as they are
clearly higher than a kite and making very bad decisions in this
state of mind.
Listen up NBC. Customers are looking for convenience and
reasonable pricing. Your on-air and nbc.com does not offer
convenience (as you either dictate the time or require me to put
up with streaming) and $4.99 is not reasonable by anyone's
definition for a single episode of any show.
Yeah for Apple for standing up (once again) for us. Yes, they
have their own reasons for doing it -- but it does seem like
Apple has been pushing for business models that work for the
customer. Too bad NBC, Universal Music, and RIAA in general
don't seem to get it.
I'm not going to a dozen websites to be frustrated by poor
streaming technology so I can watch an episode in a 2" box on
my computer. Sorry, Hulu will be a failure.
The result is I won't be watching NBC shows. And I'm not going
to go hunting around for Universal music. I will just stop buying
it -- period. That equals LOST REVENUE .
When will these dinosaurs die out?
This is also why iTunes took off... no longer am I forced to pay $20 for a CD when I can pick which songs to buy individually! What a freaking concept!
The more these aging media companies fail to understand this 'new world' we currently live in, the more money they will lose to piracy because they just don't get it.
Personally I hate iTunes and consider it the bitter to the sweetness of my iPod... however, I think NBC's move is completely retarded! They will deserve the onslaught of piracy this fiasco will rain down upon them.
NBC and Sony should get together. NBC can supply the overpriced over restricted content and Sony can attach their rootkits.
like watching commercials. Their shows all suck, they're mindless
drivel spewed out from an idiots backside to placate the moronic
sheep who follow them no matter what.
When you get around all the commercials, that is.
AAPL is trying itʻs best to keep the price down. They could go along and let NBC charge $5. but then no one would buy.
anyway, just tape it on the DVR/VHS.
with Apple for sale with their proprietary iPod/iTunes sales model.
Perhaps there is somehting in the wings that no one at the highest
levels is talking about.
No one stays in the leadership position forever. It's time for Apple
to come up with a new business model that will appeal to everyone.
build a following online to accentuate the product.) For the most
part, many of the NBC programs offered on iTunes are available
for free if you set your VCR, Tivo or other recording device.
Heroes is the only show I watch regularly on NBC, and I've
actually purchased several episodes because I didn't set the VCR
and NBC only has the most recent episode available for online
viewing. This is pure profit because Heroes and The Office are
some of the top selling TV programs on iTunes. ABC/Disney
makes most of their programs available for online viewing all the
time, not just the most recent episode, otherwise I'd be buying
more episodes of ABC programming.
NBC also had a great opportunity to make The Tonight Show and
the Conan O'Brien show available on iTunes, but the per
segment pricing was outrageous.
Even if Apple agreed to NBC's terms, I'd bet the consumer would
balk at the hefty price. If I miss enough episodes, I might stop
watching the show altogether.
Your loss NBC.
They are the ones that created a market where the likes of NBC could actually make money on shows consumers can get absolutely free elsewhere.
ASk this: If all the studios got together and told Steve to go stick it, how successful would itunes be? They do want a computer company getting in on their playgound.
Itunes exists to sell ipods.
Can I put my ripped DVD's or any other non-apple non-quicktime videos on my ipod? Can your grandmother do it?
Can I buy digital content online from someone else (with ot wothout DRM) and synch to my ipod?
wothout DRM) and synch to my ipod?"
I put non DRM'd stuff on my iPod all the time and it is "so easy a
caveman can do it".
Yes you can. Get yourself a copy of "ImTOO DVD to iPod Suite" or ImTOO Ripper Pack Platinum.
Can your grandmother do it?"
I submit to you if one's grandmother can draft a document in MS Word or send an e-mail via MS Outlook, she will be able to operate either of the programs referenced in my post. I have converted several of my movies from collection for viewing on my PSP and 5G iPod and have experienced no problems whatsoever.
Can I buy digital content online from someone else (with ot wothout DRM) and synch to my ipod?"
Yeah, actually. You can. People do it all the time. Use your google-fu.
They are the ones that created a market where the likes of NBC could actually make money on shows consumers can get absolutely free elsewhere.
other way. Considering the price and ease of portability digital
itunes will remain my number 1 method of watching tv.
Maybe itunes should embed handbrake into it then we can netflix
the dvds and import them to my ipod instantly.
If you break that price down its less than $1.99/episode and you can always make it a digital copy (legally).
You people are all sucked into the micro-universe which only revolves around Steve Jobs ego.
100 Universal City Plaza
Universal City, CA 91608
NBC Universal
3000 West Alameda Avenue
Burbank, CA 91523
http://www.nbcuni.com
Jeff Zucker, President and CEO
Lynn Calpeter, EVP and CFO
Beth Comstock, President, Integrated Media
John Eck, President and CIO, Media Works
Jay Ireland, NBC Universal TV Stations and Networks Operations
Cory Shields, EVP, Communications
- gee wasn't it just a couple years ago...
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by Painter662
August 31, 2007 1:23 PM PDT
- Wasn't it just a couple years ago all the media Giants, were
-
Reply to this comment
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See all 50 Comments >>screaming bloody murder because piracy was rampant, and
eating them alive? Then comes along iTunes, and while they
still scream about Piracy, it seems to have dimmed a bit, but
now they wanna charge like pirates anyone stupid enough to
play legal. I was reading an article a couple weeks ago on CNET,
(I think) about how the record companies are still charging
artists breakage fees, on legally downloaded music... would you
mind telling me how you break an mp 3 or 4???
I guess, my point is If you wanna live like a Pirate, you better
expect to be pestered by Pirates.