Television studio
NBC is to stop
selling its shows on
Apple's iTunes
store after the two sides failed to reach an agreement on the pricing of each
episode.
NBC content will be available until December, when the current deal expires.
According to Apple, NBC wanted to increase the price of each episode from $1.99
to $4.99.
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"We are disappointed to see NBC leave iTunes because Apple would not agree to
their dramatic price increase," said Eddy Cue, vice president of iTunes.
"We hope that NBC will change their minds and offer their TV shows to the
tens of millions of iTunes customers."
However, Cory Shields, vice president of communications at NBC, flatly denied
Apple's claims in a statement provided to
vnunet.com. "We never
asked to double the wholesale price for our TV shows," he said.
"In fact, our negotiations were centred on our request for flexibility in
wholesale pricing, including the ability to package shows in ways that could
make our content even more attractive for consumers."
Shields alleges that Apple was keeping prices unfairly low in an attempt to
promote its own products.
"It is clear that Apple's retail pricing strategy for its iTunes service is
designed to drive sales of Apple devices, at the expense of those who create the
content that make these devices worth buying," he said.
While NBC will lose a distribution channel that sold tens of millions of its
programmes, Apple could be hit just as hard by the move.
By the company's own estimates, NBC shows account for 30 per cent of iTunes
TV sales, and three of the service's 10 best-selling programmes were produced by
the studio.
NBC is the second major iTunes partner to have a falling out with Apple this
summer. In July, negotiations between Apple and record label
Universal
Music were said to be
at an impasse.
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