NBC shows to leave iTunes... (NYTimes)
08-31-07, 08:52 AM
#1
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NBC shows to leave iTunes... (NYTimes)
http://www.nytimes.com/2007/08/31/te...=1&oref=slogin
Dagnabbit! 
NBC Will Not Renew iTunes Contract
By BROOKS BARNES
Published: August 31, 2007
NBC 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.
The media conglomerate — which is the No. 1 supplier of digital video to Apple’s online store, accounting for about 40 percent of downloads — notified Apple of its decision late yesterday, according to a person familiar with the matter who asked for anonymity because negotiations between the companies are confidential.
A spokesman for NBC Universal, part of General Electric, confirmed the decision, but otherwise declined to comment. A spokesmen for Apple declined to comment. The decision by NBC Universal highlights the escalating tension between Apple and media companies, which are unhappy that Apple will not give them more control over the pricing of songs and videos that are sold on iTunes.
NBC Universal is also seeking better piracy controls and wants Apple to allow it to bundle videos to increase revenue, the person familiar with the matter said.
...
Among the most popular NBC Universal shows available for sale on iTunes are “Battlestar Galactica,” “The Office” and “Heroes.” The company has been talking to iTunes about offering Universal movies, but has not done so to date because of piracy concerns.
The two companies could still reach an agreement on a new contract before their current deal expires. While each side has so far refused to budge, the talks will continue and have been free of acrimony, the person familiar with the matter said.
By BROOKS BARNES
Published: August 31, 2007
NBC 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.
The media conglomerate — which is the No. 1 supplier of digital video to Apple’s online store, accounting for about 40 percent of downloads — notified Apple of its decision late yesterday, according to a person familiar with the matter who asked for anonymity because negotiations between the companies are confidential.
A spokesman for NBC Universal, part of General Electric, confirmed the decision, but otherwise declined to comment. A spokesmen for Apple declined to comment. The decision by NBC Universal highlights the escalating tension between Apple and media companies, which are unhappy that Apple will not give them more control over the pricing of songs and videos that are sold on iTunes.
NBC Universal is also seeking better piracy controls and wants Apple to allow it to bundle videos to increase revenue, the person familiar with the matter said.
...
Among the most popular NBC Universal shows available for sale on iTunes are “Battlestar Galactica,” “The Office” and “Heroes.” The company has been talking to iTunes about offering Universal movies, but has not done so to date because of piracy concerns.
The two companies could still reach an agreement on a new contract before their current deal expires. While each side has so far refused to budge, the talks will continue and have been free of acrimony, the person familiar with the matter said.
08-31-07, 09:12 AM
#4
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Originally Posted by rfduncan
Just a plain stupid move IMHO. So now instead of getting SOME profits, NBC will get none. I mean who else reaches as many people as iTunes? 
08-31-07, 10:33 AM
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This may be an indication that they're going to start charging for the shows on NBC.com, rather than offering them for free. (of course they'd have to let people download them as well, rather than just streaming with commercials)
08-31-07, 10:50 AM
#7
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There is absolutely nothing unfair about universal pricing from a digital store.
NBC just wants more money. Apparently raking it in with downloads wasn't enough.
NBC just wants more money. Apparently raking it in with downloads wasn't enough.
08-31-07, 10:59 AM
#8
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Originally Posted by Chucky
This may be an indication that they're going to start charging for the shows on NBC.com, rather than offering them for free. (of course they'd have to let people download them as well, rather than just streaming with commercials)
08-31-07, 11:07 AM
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I think this is more about long-term control than pricing.
Apple owns the online music business and dictates its terms to music companies. ATM, buying shows online is a tiny market because you can get much better quality via watching it on tv or buying dvds/hddvd/bluray.
Right now, hddvd and bluray are fighting it out for physical media, but 5-10 years down the road compression and bandwidth could get to the point that people can buy the shows online with the same high quality. (This is what Microsoft aiming for). When/if it gets to that point, NBC doesn't want Apple to have the same power over it as they do with the music market.
Apple owns the online music business and dictates its terms to music companies. ATM, buying shows online is a tiny market because you can get much better quality via watching it on tv or buying dvds/hddvd/bluray.
Right now, hddvd and bluray are fighting it out for physical media, but 5-10 years down the road compression and bandwidth could get to the point that people can buy the shows online with the same high quality. (This is what Microsoft aiming for). When/if it gets to that point, NBC doesn't want Apple to have the same power over it as they do with the music market.
08-31-07, 12:19 PM
#10
Amazon Unbox has:
* 30 Rock
* Heroes
* Law & Order
* Law & Order: Criminal Intent
* Law & Order: Special Victims Unit
* My Name Is Earl
* Studio 60 on the Sunset Strip
* The Office
Amazon is determined to be a factor in the market. Their deal with Tivo shows they are moving forward and keep in mind they are the largest online vendor.
PS ... Keyed nailed it.
* 30 Rock
* Heroes
* Law & Order
* Law & Order: Criminal Intent
* Law & Order: Special Victims Unit
* My Name Is Earl
* Studio 60 on the Sunset Strip
* The Office
Amazon is determined to be a factor in the market. Their deal with Tivo shows they are moving forward and keep in mind they are the largest online vendor.
PS ... Keyed nailed it.
08-31-07, 03:22 PM
#11
From Studio Briefing ...
NBC Wants To Sing a Different Tune
Unhappy with the amount of revenue it receives by selling its TV shows through Apple's iTunes Music Store, NBC has decided not to renew its contract with Apple at the end of the year and to offer the programs via its own website instead, the New York Times reported today (Friday). NBC is the leading supplier of downloadable video on Apple's online store. In effect, the network wants to be able to determine how its programs should be priced and whether they should be offered as separate episodes or bundled -- possibly with movies from its corporate sibling, Universal Pictures. The NBC announcement comes just a day after the network said that it would begin testing a video download site called Hulu that it will operate jointly with Fox.
NBC Wants To Sing a Different Tune
Unhappy with the amount of revenue it receives by selling its TV shows through Apple's iTunes Music Store, NBC has decided not to renew its contract with Apple at the end of the year and to offer the programs via its own website instead, the New York Times reported today (Friday). NBC is the leading supplier of downloadable video on Apple's online store. In effect, the network wants to be able to determine how its programs should be priced and whether they should be offered as separate episodes or bundled -- possibly with movies from its corporate sibling, Universal Pictures. The NBC announcement comes just a day after the network said that it would begin testing a video download site called Hulu that it will operate jointly with Fox.
08-31-07, 03:25 PM
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Originally Posted by rfduncan
Just a plain stupid move IMHO. So now instead of getting SOME profits, NBC will get none. I mean who else reaches as many people as iTunes?
08-31-07, 03:26 PM
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Originally Posted by movieking
Without iTunes, there is a good chance that The Office would have been canceled now. At the very least, it wouldn't have the fanbase that it does now.
08-31-07, 04:55 PM
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Apple's retort. Who else smells hubris emanating from both camps?
NBC it seems was hoping they could take advantage of their shows being available on iTunes through December to build audiences for their new programming. Apple then cuts off NBC swiftly before the Must See 2007 season begins.
Apple on Friday afternoon issued a press release confirming that it will indeed halt sales of NBC television shows through its ubiquitous iTunes download service beginning with the upcoming television season.
The move, the company explained, follows NBC’s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99.
ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”
Apple’s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September.
NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
The move, the company explained, follows NBC’s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99.
ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”
Apple’s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September.
NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
Last edited by meritocracy; 08-31-07 at 05:13 PM.
08-31-07, 05:14 PM
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The general rumor & speculation is that the studios get about 70%, give or take, on any given piece of media on iTunes. So that would be about $1.40 a video.
Last edited by meritocracy; 08-31-07 at 05:42 PM.
08-31-07, 05:14 PM
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If they'd go for it, I'd love to ditch DRM and let the stupid studios have control of their pricing. They may start at $5 an episode, but they'd battle themselves right back down to $2 eventually.
08-31-07, 05:30 PM
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Originally Posted by musick
I see how Apple doesn't list its list prices for their overpriced content delivery system(s)
how much is that phone of theirs again?!
how much is that phone of theirs again?!
08-31-07, 05:30 PM
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Oh, also, to the content is king guy, I'd suggest the coin has two sides. If, as a company, you love your content too much and price it and/or make it available in a manner that the consumer doesn't like, your content isn't going to be worth a damned thing. It's not like all of us with iPods are going to abandon them just because The Office is gone. I'm damned sure not going to buy a new media player just because NBC has chosen to shoot itself in the foot.
08-31-07, 05:42 PM
#23
DVD Talk Limited Edition
Originally Posted by porieux
Yeah, because if you want to use content from the iTunes store, the only possible option is the high end iPhone
please point me to where I made mention that the only possible option of watching iTunes content was the iPhone.... exactly
oh, also, to the Jimmy James guy
ever think that the amount of money a company like NBC Universal makes on iTunes sales is pocket change
NBC can stream their content on their site for free and attract more viewers than potential downloaders on iTunes and in turn can collect more in advertising revenue.
08-31-07, 06:43 PM
#25
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Originally Posted by musick
maybe you should roll your eyes towards yourself
please point me to where I made mention that the only possible option of watching iTunes content was the iPhone.... exactly
please point me to where I made mention that the only possible option of watching iTunes content was the iPhone.... exactly
oh, also, to the Jimmy James guy
ever think that the amount of money a company like NBC Universal makes on iTunes sales is pocket change
NBC can stream their content on their site for free and attract more viewers than potential downloaders on iTunes and in turn can collect more in advertising revenue.
ever think that the amount of money a company like NBC Universal makes on iTunes sales is pocket change
NBC can stream their content on their site for free and attract more viewers than potential downloaders on iTunes and in turn can collect more in advertising revenue.
