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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.




by MacNN Staff

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Comments

  1. Feathers

    Joined: Dec 1969

    0

    hardware share?

    Hmm...sound familiar? No wait, wasn't that Universal and Microsoft? Of course it is NBC-Universal, surprise, surprise!

  1. Athens

    Joined: Dec 1969

    0

    tough

    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.

  1. boris_cleto

    Joined: Dec 1969

    0

    Only $15 Million

    They "only" made $15 million when before they were making $0.

  1. sixcolors

    Joined: Dec 1969

    0

    Hulu Hoop

    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.

  1. l008com

    Joined: Dec 1969

    0

    SOooo

    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.

  1. fishtech

    Joined: Dec 1969

    0

    Do they want profitshares

    ... from Sony, Panasonic, Samsung , Misubishi, etc for TV hardware sales?

  1. njfuzzy

    Joined: Dec 1969

    0

    So what?

    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.

  1. Guest

    Joined: Dec 1969

    0

    Delusional

    "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.

  1. Eldernorm

    Joined: Dec 1969

    0

    just stupid greed

    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

  1. Mr. Fartleberry

    Joined: Dec 1969

    0

    Greedhogs

    NBC - I feel your pain. Let's get this site back to computing not phones and merchandising.

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