updated 09:25 am EDT, Tue September 11, 2007
News Corp. backs iTunes
In the wake of the mutual fallout between Apple and NBC Universal over pricing, News Corporation -- owner of the Fox movie and TV studios -- says it will continue to sell shows through the iTunes Store. President Peter Chernin notes that contrary to speculation from industry observers, News Corp. has no intention of following NBC, despite wanting more control over video sales. "Right now we have a perfectly good relationship with Apple," says Chernin, "But let me say this, we're the ones who should determine what the fair price for our product is, not Apple."
NBC is rumored to have split with Apple partly because it expects its upcoming Hulu service to fill in the gap; News Corp. is also a partner in the project however, and Chernin argues that Hulu will not compete with the iTunes Store. The former will offer streams with advertising, Chernin says, whereas the latter sells ad-free shows to own.
The Fox networks comprise a small portion of iTunes' video content, with popular shows like "24," "House" and "American Dad" being complemented by sports and reality programming. NBC Universal is still currently the largest video supplier, providing 40 percent of all material, among it shows like "The Office" and "Battlestar Galactica."