Katie MarsalNBC Universal has rejected claims by Apple that it wanted to more than double the price of TV shows on iTunes — and has also contradicted threats that new NBC shows would disappear from the iPod maker's online store.
The studio also insisted that all of its existing shows would see new episodes available for sale through iTunes in spite of Apple's declaration mid-Friday that it wouldn't carry updated NBC programming for the fall season. The company did not say how it intended to force Apple to agree to the terms, but appeared to use its existing contract as leverage.
"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," said Shields. "Our content is also available on NBC.com, Amazon.com, and the soon-to-launch hulu.com."
The statement reiterates NBC's cautious approach to renewing its contract with Apple, leaving a window open for the the two firms to resolve their dispute before the end of the contract. But in a counter to Apple's own allegations, NBC argued that its would-be partner was the unreasonable firm in the dispute, attempting to keep prices at its media store fixed in a way that favors sales of iPods and iPhones above the shows themselves.
"It is clear that Apple’s retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."
The confirmation of variable pricing as a sticking point for NBC reveals the seriousness of the issue for its parent company Vivendi. July saw NBC's sister company Universal Music Group drop its long-term contract for iTunes music, choosing instead to offer music "at will" so long as Apple maintained its flat 99-cent song pricing. Warner Music and other larger labels have also made similar arguments, but aren't known to have abandoned their own contracts.
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"It is clear that Apple?s retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."
Really? Then how do you explain Amazon selling the same content for the SAME price?? These executives take the masses for a bunch of idiots. The reason for all of this is to hike up the prices on iTunes ahead of the October launch of NBC and Fox's Hulu.
This war can be traced back to Universal demanding a cut of all iPods sold. Microsoft gave in and they are pissed that Apple said no way.
The above statement makes it clear that Shields thinks that they diserve all your money. After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!
The NBC folks are still stuck in the old ways of old media.
As a minimum they should get their story straight.
I mean it's binary - they either wanted $4.99 or they did not.
I think they wanted $4.99 for some and $1.99 for others, so it isn't "binary."
Both NBC and Apple are assuming they know what the consumer wants. Both can be stubborn, but Apple is alot smarter about it and knows that people want to take media on iPods, on TV's and on computers while NBC still thinks media is only about online computer streaming video. It is like the record companies who want digital media to exist in a manner that they can "pull the plug" on when they feel they are losing control.
"After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!
Hey, why are you getting down on the people who are making the content? They're not the ones doing this; in fact, a lot of them are on the side of the angels. And most of the gaffers I know in TV and movies don't make 120K. You must know some really veteran gaffers with major seniority and a great exchange rate.
Those unbelievable greedy bastards at NBC! Apple spoon feeds NBC a new revenue source, over and above their usual commercial contracts, and now they want even more.
They are too stupid to realize that they will sell more shows and make more money if they keep the price low.