08/31/2007, 9:35am, EDT
Friday, August 31st
NBC to pull TV shows from iTunes
NBC Universal will no longer offer episodes of its TV shows through the iTunes Store, according to fresh reports. NBC is said to have informed Apple of its decision late yesterday, a fact confirmed by an NBC spokesman. A source for the New York Times suggests that NBC is upset over Apple's lock on sales schemes, particularly its resistance to altering prices, or bundling videos together to increase profit. NBC would also like to impose more stringent DRM measures.
Videos will not be pulled from iTunes for several months, as the current two-year contract between Apple and NBC runs through December. If and when they disappear however, it may have a dramatic impact on iTunes, as NBC is the top supplier to the store, supplying approximately 40 percent of all video, or 1,500 hours. Some of the most popular series belong to the network: these include "Battlestar Galactica" and "The Office."
The Times' source suggests that the content may yet remain, but this depends on a new contract being agreed to in the short time before the prior one expires. Both companies are still said to be involved in talks, the NBC announcement being a necessary 90-day warning to prevent its deal from renewing. Similar warning deadlines may be coming up for the likes of CBS, Discovery and the News Corporation.
Many companies are said to be upset with Apple, accusing the company of underpricing iTunes content in order to sell iPods and accessories. Most recently, the Universal Music Group decided to switch from a contract to an "at will" relationship with Apple, and has deliberately excluded Apple from its tests of DRM-free music.
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If they think that people will follow their shows to another store, one that may not support iPods or Apple TV, "just because," I fear that the networks are sadly mistaken.
And more DRM? When are these guys going to learn that DRM isn't a feature?
Hopefully Apple will be able to continue hold their own in this battle, as Apple's loss is our loss.
As e:leaf mentioned, I doubt many people will "follow" the show to another download site. They will almost certainly lose viewers.
Instead of Apple they should go negotiate with Wal-Mart who will really squeeze them.
While I am all for content providers, artists and studios making money, I really think that they are being short-sighted. The fact is that they make more at $1.99 an episode (or less) than they make airing the show.
I recently bought all the new Battlestar Galactica episodes on iTunes because I was interested in seeing them, but was not willing to spend $50 a season to get the DVD. iTunes had them on sale. I would not have otherwise purchased the show.
NBC would be foolish not to continue this relationship. The admitted that it boosted viewership of subsequent episodes when the show was on itunes.
Vivendi > the powerful French media conglomerate behind moves to get iTunes Music Store bashed by the European Union?
BTW, Vivendi suffered the worst ever corporate loss (to date) of a French compay in 2002. From Wiki: "[Vivendi] has become a study in the triumph of personal ambition and greed over common sense"
And they think THIS is a good business decision?
b.
NBC Universal (tv production studio) = Owned by NBC and Universal (I believe)
Apple has hit on the price that the CONSUMER is willing to pay. And THAT sells iPods _and_ TV shows and movies. Will more DRM stop piracy? No. But take this content off iTunes or jack up the price... THAT will spur piracy. People are willing to pay if it's worth their while.
Bash Apple if you will, but in reality it's us, the consumers, you're railing against. We set the price these days. You can't just tell us what we'll pay any more because you're the only gme in town. In this era, we tell you. You can bring your game at that price or you can go home and we'll get our content elsewhere.