backtop


Print 40 comment(s) - last by DJay48.. on Sep 3 at 9:30 AM


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: About time!!
By wupta on 8/31/2007 11:40:02 AM , Rating: 2
You are correct about choice. This feature I really like because it allows us to sale singles. We used to have to put out an entire CD whether we liked it or not. Retailers wouldn't take your product if it wasn't a full length.

Apple is not being truthful about not making money on songs. Which corporation would not try to make money on what it sales.


RE: About time!!
By TomZ on 8/31/2007 12:41:30 PM , Rating: 2
So the basic problem seems to be that $1/track may be profitable if you are able to sell 1M or 10M downloads, for if you're only selling 100K downloads, it is not profitable.

Therefore, because of the production cost, it would seem to support your view that an individual song from a label like yours would need to cost more, like the $3 figure you mention. But since Apple has now effectively defined the cost expectations at $1, that creates a real problem. Because of this, the $3 song needs to really stand out compared to the typical $1 song. How do you do that?

I guess the person who can figure out this will make a lot of money.


RE: About time!!
By wupta on 8/31/2007 1:02:12 PM , Rating: 2
You are correct from my perspective and a great song deserves that.


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki