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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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RE: About time!!
By Danderson on 8/31/2007 12:23:15 PM , Rating: 2
If you owned the largest (legal) online distribution channel in the world for music, how much would you charge labels? I realize the burden this can have on independent labels can be hard, but it seems that iTunes if anything has given independent bands more exposure (global) than they could in any other venue in the past. Secondly, the cost of production for CDs, printing artwork is removed, etc., which I am assuming is more costly because of the smaller numbers involved.

I may be ignorant on the earning potential, but has producing small independent individual bands ever been a huge profitable venue? Seems the independents eventually sign with a larger label anyways after time? Am I correct on this?

And yes I feel that I am entitled to cheap music on a song by song basis. $.99 is a fair price, the problem is I typically don't buy all 11-12 songs on a CD. I know you can buy a $4 latte at Starbucks, but I get my $.50 coffee from 7-11. The point is if you think you can provide a more profitable channel why wouldn't a group of independent labels create their own online channel and charge $5 a song for all I care? Because a competitive market will provide otherwise.


RE: About time!!
By wupta on 8/31/2007 12:54:27 PM , Rating: 1
It was inevitable that music would be on the web, Apple wasn't the first but it was the best at the time. The independents always signed with majors because they had $$$ to get them launched properly after the small companies like mine had developed them. It wasn't always profitable but is sure made you feel good to get music out there. You can feel entitled but so does the Artist as well as the companies behind them. The cost of production of hard goods isn't the major expense for companies that generally runs from a dollar to $.50 a unit over time. I am sure u don't care and thats fine. The future will show if I am wrong. I go to 7-11 for coffee which is $1.29 a 16oz a cup where I am.


"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg














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