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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 2:25:36 PM , Rating: 2
Also, I find it interesting to learn that Apple takes 50% plus an adminstration fee. I have heard time and time again that Apple basically makes no money off of iTunes. That statement would appear in reality to be completely incorrect.

I don't understand your statement. Apple does NOT say that they get no revenue from iTunes. They say they don't get significant profits off of it. A VERY different thing.

Even companies with billions of dollars of revenue go bankrupt and close down due to lack of it being profitable.

RE: About time!!
By TomZ on 8/31/2007 2:38:37 PM , Rating: 2
I've heard that Apple is getting $0.05-$0.10 per song, even seen that in comments here on DT. That's a far cry different than the $0.60 that is being stated here.

And I am assuming that the net cost to distribute a song is significantly less than $0.60/song. Therefore, I if this assumption is correct, then the statement that Apple doesn't earn much profit from iTunes is false.

Where am I going with this? I think the impression Apple conveys about not making profit on iTunes, only on the hardware, is just some more PR spin from Apple.

Even companies with billions of dollars of revenue go bankrupt and close down due to lack of it being profitable.

You're usually good about not stating the obvious...

"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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