Earlier this morning, DailyTech
reported that NBC Universal decided
not to renew its iTunes contract due to Apple's inability to negotiate on
higher prices. Apple has since responded to NBC Universal's remarks and decided
to air some dirty laundry in the process.
In a press release issued this afternoon, Apple reported
that NBC Universal called for an increase in price for its TV shows to $4.99
per episode -- the current price is $1.99 per episode. This was especially
disconcerting to Apple considering that ABC, CBS and FOX all signed on for next
TV season at the $1.99 per episode price.
"We are disappointed to see NBC Universal leave iTunes
because we would not agree to their dramatic price increase," said iTunes
VP Eddy Cue. "We hope they will change their minds and offer their TV
shows to the tens of millions of iTunes customers."
Apple also went one step further than NBC Universal's
request to sever ties with iTunes. NBC Universal's contract with iTunes was to
end in December. Since the end of the contract would happen half way through
the television season, Apple has decided to boot NBC Universal from iTunes
before the new TV season begins in September.
According to Apple's own numbers, NBC Universal TV shows
took three of the top ten slots for best selling TV shows on iTunes last season
and accounted for 30 percent of all TV show sales.
quote: ...put out junk nobody wants to buy/hear/see...
quote: the majority of the people that were buying these off of itunes for 2 dollars are computer savvy to the point where they will just go back to bittorrent
quote: Wow 5.9%. I guess that is incredible for a pc/software maker who's business strategy is to push obsolete technology in a pretty box
quote: And now they switch to Intel, I would have had more respect for Apple if they would have at least considered AMD.
quote: Still not much of a player.
quote: They are alive today due to iPod sales.
quote: It has been poor for the past decade and so was their stock value until the iPod kicked it up. Their stock now is doing very well because of the iPod, and most recently the iPhone.
quote: ....and you sir, are a raging Apple fanboy..
quote: (Alienware is Man pretty)
quote: 1. I don’t care how pretty my PC is.
quote: 2. I like to play computer games from this century.
quote: 3. I don’t hang out at coffee shops, and buy my furniture at the Pottery Barn.
quote: 4. Bouncing icons are gay.
quote: 5. I am not gay.
quote: Go fuck yourself Steve Jobs.
quote: This is like eBay telling sellers that they have to lower their Buy It Now prices.