NBC: iTunes brings us "pennies", no leeway
updated 04:30 pm EDT, Mon October 29, 2007
NBC CEO on Apple
NBC president and CEO Jeff Zucker has expressed his views on the formal relationship between his television network and Apple, which is set to expire this December. NBC canceled its contract with Apple after negotiations fell apart between the two firms. NBC asked for the freedom to experiment with pricing on some of its hit shows, and requested a share of Apple's hardware revenues -- which NBC says saw an extravagant boost as a result of its content coming to the iTunes Store, according to Variety.
"We wanted to take one show, it didn't matter which one it was, and experiment and sell it for $2.99," Zucker said. "We made that offer for months and [Apple] said no."
"Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money. They did not want to share in what they were making off the hardware or allow us to adjust pricing."
NBC programming made up 40 percent of the iTunes Store video sales last year, but that content will disappear this December with the expiration of the contract between the network and Apple. NBC only made $15 million during the last year of its deal with Apple, according to the executive.
"We don't want to replace the dollars we were making in the analog world with pennies on the digital side," Zucker explained.












hardware share?
10/29, 04:40pm reply
Hmm...sound familiar? No wait, wasn't that Universal and Microsoft? Of course it is NBC-Universal, surprise, surprise!
Feathers
Forum Regular
Joined: Oct 1999
tough
10/29, 04:40pm reply
my responce to NBC, I am never buying another item they have to sell and will only download via limeware or bit torrent anything of interest they have to offer. On the other hand I will continue to purchase DVDs from Sony and any other company that isnt stupid.
Athens
Addicted to MacNN
Joined: Jan 2003
Only $15 Million
10/29, 04:41pm reply
They "only" made $15 million when before they were making $0.
boris_cleto
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Joined: Sep 2002
Hulu Hoop
10/29, 04:43pm reply
If I was Apple I'd tell them to fück off too. Hardware revenue isn't going to happen; why would they, does Thompson hive NBC money for broadcasting, don't think so.
As for charging new prices, they have a contract at $199 per episode, so that's what things will get sold at.
Besides, if Apple stops selling them people will just pirate them. So NBC will get nothing instead of something.
sixcolors
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Joined: Oct 2001
SOooo
10/29, 04:52pm reply
Sooo is NBC going to contact Sony and be like, 'you should give us some of the money you make from selling TVs!" Thats absurd.
l008com
Professional Poster
Joined: Jan 2000
Do they want profitshares
10/29, 04:54pm reply
... from Sony, Panasonic, Samsung , Misubishi, etc for TV hardware sales?
fishtech
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Joined: Jun 2006
So what?
10/29, 04:59pm reply
If NBC doesn't have shows on iTunes, I won't be buying them. Since I don't watch a lot of TV, that means Netflix, I guess, and NBC doesn't really profit from me doing that.
njfuzzy
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Joined: Apr 2001
Delusional
10/29, 05:07pm reply
"Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money."
Zucker needs to get out more. Very few people bought iPods so they could view NBC content. Typical executive in a self-important bubble.
Guest
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Joined: Nov 1999
just stupid greed
10/29, 05:07pm reply
Zucker and his bunch are stuck with an outdated business model, tons of greed, and no idea hot to make more money. :-(
We are talking about tv shows that I can watch for free, video tape and watch later for free or pay for on iTunes. Now he things that giving it to me for free on some crapola new video download and then start charging me even more money, is a way to make tons of money from me???????
What an idiot. :-(
Universal is doomed, I tell you.
en
Eldernorm
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Greedhogs
10/29, 05:22pm reply
NBC - I feel your pain. Let's get this site back to computing not phones and merchandising.
Mr. Fartleberry
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