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iTunes dispute hurts Apple
The iTunes pricing dispute hurts Apple more than its hurts NBC Universal and reinforces the relatively little influence that Apple has in the video download market (compared with the digital music market). NBC Universal's decision to pull its network TV shows from the industry-leading iTunes Store points to fierce resistance among media companies to the potential Apple dominance of online video sales, an industry analyst told IDG News Service. NBC, which already offers most of its network shows for free via its ad-supported website, has sold out most of ad inventory already, giving it an alternative--and potentially lucrative--distribution strategy. The rift with NBC is more damaging to Apple than to NBC, the analyst said, because Apple is using its digital store to sell products, such as the Apple TV, the iPhone, and video iPods.
NBC: iTunes pricing fixed
Continuing the public jousting, NBC Universal (NBCU) claims it never asked to double the wholesale price--as Apple claimed--and insists its network shows will be sold by the iTunes Store through early December. NBCU also said that Apple needs do more about piracy and that Apple's iTunes pricing strategy is hurting content providers. The statements made by NBCU execs directly counter a press release made by Apple on Friday morning and appear to be yet another move by the network to put public pressure on Apple to bring the popular shows to the industry-leading iTunes Store. NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
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