09/01/2007, 4:55pm, EDT
Saturday, September 1st
NBC counters: no iTunes pricing flexibility
According to NBCU's executive vice president of communications Cory Shields, the iTunes contract dispute centered on a "request for flexibility in wholesale pricing, including the ability to package shows together in ways that could make our content even more attractive for consumers."
The report also says the exec said NBCU wanted Apple to do more about piracy "since it is estimated that the typical iPod contains a significant amount of illegally downloaded material."
In addition, the Shields claimed that Apple's pricing strategy is solely designed to sell its hardware, rather than compensating content providers fairly. "It is clear that Apple's retail pricing strategy for its iTunes service is designed to drive sales of Apple devices, at the expense of those who create the content that make these devices worth buying," Shields said.
Apple on Friday said it would stop selling NBCU shows next month because its contract, which ends in December, would not be renewed by NBCU; however, the network directly countered the statement by not only noting other digital distribution outlets, but by insisting that its currently running shows would continue to be available on iTunes through December, but that those shows premiering this year would not be available.
"We want consumers to know that all our returning series, including new episodes, will be available on iTunes through the remainder of the contract, which expires in early December," Shields said. "Our content is also available on NBC.com, Amazon.com, and the soon-to-launch hulu.com."
Filed under: industry
Other story tags: digital music/video
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NBC has far more to lose than Apple here. TORRENTS anyone?
Perhaps Apple should just stand on the train tracks of your stupid ideas and wait for reality to hit them? This is all just spin doctoring. They haven't a leg to stand on, and it shows. They're attitude makes me want to just ignore their network altogether, except I'd regret punishing the REAL content makers (as opposed to executives with stupid ideas).
NBC IDIOTS
Paying high prices for TV Shows that can be recorded on Tivo for free is a non starter.
NBC must have been wanting to get out of the deal. There is no way their price negotiations could have been sincere.
Steve Jobs is my hero. I have no heroes in the TV Networks, Music Companies, or Cell Phone Companies like AT&T.
If you want to go into shock take an iPhone to Europe for two weeks and check your AT&T phone bill on your return.
Apple and Google are attempting to clean up the mess.
Hang in there Steve. Tell them to kiss off (again).
Fact is, there is always a way around DRM - even if it means grabbing content as the final output signal - and there will always be companies happy to sell products that play such content.
Cleverboy's right: the only way to fight piracy is with convenience. Apple has allowed the content providers to do that, and NBC's shareholders should be deeply concerned at the backward step their execs have taken.
Apple isn't.