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Claire Bennet and the rest of the Heroes gang may be leaving iTunes
NBC Universal says "good-bye" to iTunes

Apple is very protective of its iTunes store and the pricing model used to distribute music and video. That tight grip over pricing has caused NBC Universal to break ties with Apple.

NBC Universal will not renew its contract with Apple to sell TV shows on iTunes. Popular NBC Universal shows made available on iTunes include "Heroes," “30 Rock” and "The Office." In fact, NBC Universal is currently the number one provider of video downloads on iTunes and accounts for 40 percent of video downloads (roughly 1,500 hours or programming).

NBC Universal's two-year contract ends in December, so content will still be available on iTunes until that time. Apple and NBC Universal could still come to an agreement before the end of the contract, but it appears -- for the moment at least -- that neither side is willing to budge on the matter.

NBC Universal feels that it should receive a larger cut of iTunes downloads and have the ability to package content together. Apple on the other hand has stood its ground with regards to pricing and contends that packaging video content would lead to confusion for buyers and decrease demand.

This isn't the first time that Apple has run into pricing issues with one of its content providers. In July, Universal Media Group decided not to renew its iTunes contract over similar pricing concerns.



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Responsibility to the Sharholders
By Danderson on 8/31/2007 10:18:52 AM , Rating: 3
The issue with any public company is that they need to show continual increased profits to spur the stock price for their shareholders. Instead of providing desired content like the ever popular Heroes, etc., they have stated that they want to show only these easy to produce game shows and sorry reality shows, that as a result no one will download. So instead of providing better content to spur increases in sales for video on demand, they want to take the easy road out and just raise the price.

These guys have typically been in the drivers seat and losing control is killing them. That along with Tivo and other technologies where they can't properly measure viewing habits, is leaving these guy scratching their heads.

If you build it (good programming) they will come NBC Universal...If not people will just get it free off of the internet anyways




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