NBC ends iTunes contract

TV network declines new deal and will pull shows in December

Written by Shaun Nichols in California

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.

Advertisement

"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.

Shortly after, Universal Music left Apple out of its DRM-free music programme.

Tags:

Further reading

Related whitepapers

Related jobs

Do you agree?

IT white papers

Search vnunet IThound

Top categories

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Watch

Shaun Nichols

19 Dec 2008

2.93 MBPodcast Special: Views from the Valley More...

Podcast image

18 Dec 2008

17.6 MBComputing podcast - the highlights of 2008 More...

Shaun Nichols and Iain Thomson

15 Dec 2008

4.98 MBPodcast Special: Views from the Valley More...

Poll

Communications super-database

Communications super-database

Should the government be allowed to track our emails and internet use?

Previous poll results

Spotlight

CES 2009

CES 2009: Microsoft releases first Windows 7 beta

General public can test drive the next version of Windows...  More...

Macworld

Macworld 2009: Apple ties battery into MacBook Pro

New battery offers eight hours of operation, but is not...  More...

CES 2009

CES 2009: Poor economy hits CES

Exhibitors and expected visitors down   More...

Ramalinga Raju

Satyam chairman admits to £682m fraud

India reels as Ramalinga Raju owns up to chain of...  More...

Primary Navigation