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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 jtesoro on 8/31/2007 2:08:54 PM , Rating: 1
I sympathize with your situation but the market is changing and everyone will have to deal with it. I agree that piracy is having a negative impact on major and indie labels but I wouldn't point the finger at Apple. In my view, without iTunes and its ilk, there'd be even less money to go around the music industry.

You want freedom to do what you want with your product and sell it at the price you believe is fair. You do have this freedom. You can actually price songs at $2.99, but you'd have to do it at your own store. After all, no-one is forcing you to go to iTunes.

I also don't like your comparison to expensive coffee. Like you, they should be able to price it the way they want. If people find the coffee too expensive they simply wouldn't buy it. But people do buy it for some reason in spite of availability of super cheap coffee they can make at their own homes. The onus is on you to make your product desirable at the price point you want.


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