Apple has just issued the following press release:
AppleÂ® today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunesÂ® Store (www.itunes.com). The move follows NBCâ€™s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
â€œWe are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,â€ said Eddy Cue, Appleâ€™s vice president of iTunes. â€œWe hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.â€
Appleâ€™s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September. NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
All I can say is – WOW.
The gloves are off. Apple isn’t budging. The ball is in NBC’s court now.
And thus NBC puts yet another nail in it’s coffin. And here I was thinking that it was bad enough when their own comedians made fun of the channel.
oh well… what can ya do?
I’m disappointed, but life goes on I guess.
I’m sure NBC will come crawling back.
The sad thing is, it will only promote piracy. While getting shows the “Free Way” takes more time. iTunes is simple and easy and it just works.
Apple’s move is a strategic one! Regardless of what happens to NBC, Other companies now know that if they try the same thing, they will be summarily dropped!
Jobs doesn’t take any shit! especially from the big media Co’s
Now people will steal… minor sweat off Apple’s back, major problem for NBC… that was a stupid move on the networks part…
I’m extremely glad Apple did this. What makes the iTunes Store so good is its amazing prices and ease of use. I buy music (not shows, damn you iTunes Canada) because its quick and easier than having to go download it somewhere. It comes perfectly encoded and ready to go. Normally I wouldn’t buy TV shows as I get em for free on tv (minus monthly bill of course) But charging $2 an episode is nothing, so little I don’t care if I buy a bunch of them. But $5 an episode, meh, for 1 or 2 its not bad, but it adds up.
Umm.. Hasn’t anybody else thought about the erosion factor Apple is in danger of? Universal, NBC, and Walmart and others selling DRM-free music for much less… I feel these issues are big for Apple, really more than they are for the other players.