AppleInsider StaffNBC Universal, unable to come to an agreement with Apple on pricing, has decided not to renew its contract to sell digital downloads of television shows on iTunes, according to the New York Times.
A spokesman for NBC Universal subsequently confirmed the conglomerate's decision but would not elaborate further. Since the NBC's existing two-year contract with Apple runs through December, its latest decision will not have an immediate impact on the iTunes service. It also leaves the door open for the two forms to reach a new agreement before the current contract expires.
For its part, NBC is seeking more control over the pricing of songs and videos that are sold on iTunes. It also wants better piracy controls and for Apple to allow it to bundle videos to increase revenue.
NBC Universal is the second major iTunes supplier recently to enter into a standoff with Apple over pricing and packaging matters. In July, the Universal Music Group — the world’s largest music corporation — said it would not renew its long-term contract with iTunes and would instead market its music at will (allowing it to remove songs from iTunes on short notice).
In its report, the Times suggests that the defiant moves by NBC Universal and Universal Music could embolden other media companies that have been less than thrilled with Apple’s policies.
NBC Universal was the second company to sign an agreement with Apple to sell content on iTunes and has since been talking to the company about offering Universal movies. No deal has been reached, however, because of piracy concerns on the part of NBC.
The existing contract between Apple and NBC Universal stipulates that Apple receive notice of NBC's plans to cancel 90 days before the expiration date, otherwise the deal would automatically renew.
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81 Comments
This is one of the few headlines I've seen that doesn't declare NBC is already pulling content from iTunes. Hard to believe how half-baked cnn and the like are with their stories. To read the coverage on other sites you'd think NBC had already taken everything down from iTunes - or that they will definitely do so soon. Reckless reporting on their part.
Here's a nice little rip on that.
http://news.com.com/8301-10784_3-976...g=2547-1_3-0-5
This is one of the few headlines I've seen that doesn't declare NBC is already pulling content from iTunes. Hard to believe how half-baked cnn and the like are with their stories. To read the coverage on other sites you'd think NBC had already taken everything down from iTunes - or that they will definitely do so soon. Reckless reporting on their part.
Not really, read the article. It clearly states that NBC had to inform Apple before 90 days of the end of the contract if they no longer wanted to continue. Today is 90 days before the contract expires and so one could logicly assume that NMC have written to Apple to inform them that they are not renewing the deal. Anyone who prints a new story saying NBC have cancelled their contract and iTunes will be no longer selling NBC content has just about hit the nail on the head. I am unsure as to how else they could spin this?
Somehow, I can't see SJ demonstrating the new ipods' video abilities with clips of the Office next week! Maybe he'll announce that they have built-in bittorrent via wifi instead :-)
This should not come as a suprise to anyone, It is not just NBC, this is all down to the advertisers. The networks are fighting hard to keep a broadcast model that is funded both through advertising as well as purchased content, look at the announcement made by Comedy Central about South Park this week. No matter what revenue they get from sales they cannot afford to lose advertisers.
NBC would like to offer discounted seasons for purchase on iTunes, and i for one would agree with that. I think the prices iTunes charges for a season of a TV show is far too high, and i would imagine most people would agree. Why should a poorer quality downloaded season cost more than a DVD box-set??? Yet there are many examples of this on iTunes.
* Apple, dont be so greedy, why not have a fair price for a season of a TV Show (especially one that is years old)?
* NBC, dont be so feckin stupid, if we cant buy it from itunes there are plenty of places to download it for free! Is this really what you want?