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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 Oregonian2 on 8/31/2007 2:18:23 PM , Rating: 1
Why do people feel they are entitled to cheap music?

People want cheap everything.

A cup of coffee cost more then a song why??

Because the sellers can get it. Also that cup of coffee from Starbucks (etc) will be really good. Every time. Also it's drug related. One *NEEDS* caffeine more than a song sometimes.

Who should decide what a song is worth?

Buyers always do. It's the system.

This is private business and like all private businesses it should decide for itself to sale at whatever price it wants to

Yes, the seller can and does set the asking price. But only those buyers who agree that the worthiness (see previous question) is that high or higher will buy. Ask for less, more will buy. Basic supply and demand. Piracy does mess this system up though (as it would anything being sold including fakes of any sort).

I don't hear anyone complaining about the price of a meaningless device which without the music is nothing it's only cool cause it plays MUSIC!!!

Well, people do complain especially for the models you gave the price for. Those models also play movies and show photos. They also play podcasts which are usually free (main use for the one I had before it 'disappeared' from a hotel room I was in).

I'm curious though. If you net only 40% of the end-customer revenue from itunes and that itunes is ruining your small-guy industry, does that mean that your sales of CD's through retail yields a higher income (the alternative) or having your own download website? If itunes is so bad, why use them at all? I don't mean this in a bad way, I am curious. Although Apple sells a lot of tunes, my understanding that they're still only a small portion of the overall music distribution field.

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