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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: My final comment.
By mcnabney on 8/31/2007 2:13:50 PM , Rating: 2
People do care, but they also care about other things. I grew up in the album era. My vinyl and cassettes are long gone and I have seven milk-crates jammed with CDs in my basement. I have spent many thousands of dollars buying albums that on average had 2-3 songs that I really wanted. There are always some albums that are excellent throughout, but the vast majority are riddled with mediocre work. Now the market has evolved back to the age of purchasing singles. And yes, the industry is going to take a hit for not making tons of money selling the customer something they don't want. Who knows. Maybe in a couple years musicians will stop releasing albums and instead put out a new single twice a year. This might be better since quality can be maintained when there is no disk to fill.


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