“Here’s the latest advice from Silicon Valley to Hollywood: Don’t cheat on Steve Jobs and then ask him to split the proceeds from the video,” John Shinal reports for MarketWatch.
“That Apple will no longer distribute NBC television shows through its iTunes store should have surprised no one, of course,” Shinal reports. “The love went out of this marriage back in March, when NBC Universal formed a joint venture with News Corp. for a new Web-based video network to be distributed through Yahoo Inc., Microsoft Corp.’s MSN and Time-Warner’s AOL unit.”
“The Apple-NBC story in a nutshell is that NBC Universal executives did a bad impersonation of Marlon Brando and made Jobs an offer that he couldn’t accept,” Shinal reports. “According to the release from Apple, NBC’s offer would have forced the Cupertino, Calif.-based company to raise the price of an episode to $4.99 from $1.99. Rather than wait until December, when the current agreement ends, Jobs slammed the door on the relationship.”
“The question now is who will be more hurt by the split,” Shinal reports. “Apple itself says that about 30% of its iTunes TV episode sales come from NBC shows, including some of the most popular on the site. That could ding revenue growth, but probably not profit, because Apple uses content as something close to a loss leader to spur iPod sales. For NBC, though, the divorce means it loses its best Web-based distribution tool before the joint venture with News Corp. is up and running.”
Shinal reports, “There is still no firm date for when consumers will be able to watch shows on Hulu, and the chances of it going smoothly are low, for at least three reasons.”
Full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Linux Guy And Mac Prodigal Son” for the heads up.]
MacDailyNews Note: Please see related article: NBC: Apple’s iTunes, iPod powering broadcast ratings for ‘The Office’ – January 17, 2006
Thanks for the new word – fscktards!!!
Going to use it often.
Also, do you yell out “Hey ma!” or “Brandeen!” every time you walk in the house?
Holy crap! We’re getting the whole Simpson’s lineup here.
Welcome aboard Arnie!
WSJ will be plugging the slimy one’s ass to stop it dribbling after a shat!
They’ll come around once they feel the only result from pulling a stunt like this is removing the shaft from their “hulu”
Should call it “HuKnew” after it dies a slow death
Has anyone ever heard of MSNBC??
There’s your answer! Ballmer, Inc. is always behind it somewhere, somehow.
I’m guessing that NBC wanted to raise prices for HD content that Apple will be announcing this coming Wed.
Steve Jobs probably wanted to keep the price at $1.99 while NBC said HD must go for $4.99.
I just can’t think of any other reason why NBC would demand $4.99 for a low-res episode of a tv show UNLESS it was their intention to get out of the iTunes contract from the get-go.
Let’s see, we could continue making X amount of dollars selling our shows at $1.99 per episode, or NOTHING by having Apple shut us out for trying fleece the customers by selling shows for $4.99(!) an episode. And they chose to be dropped? I think the executives at NBC need to work on their basic math skills.
A little birdy dropped by and told me about Azureus http://azureus.sourceforge.net/ and EZTV http://www.eztvefnet.org/frontpage.php and how great it works. For those seeking TV shows it works like a dream.
Side note: Be careful if you are using Charter Cable (at least in Wisconsin) they are starting to send out notices that they have noticed TV downloads from your (the recipient of the letter) internet connection and that there will be no further warning before reporting the activity to the proper authorities. Just FYI… Big Brother is not just a TV show on CBS.
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The Dude abides.
“…NBC Universal executives did a bad impersonation of Marlon Brando and made Jobs an offer that he couldn’t accept…” The Godfather movies are owned by Paramount, I believe. Still, a great line!
They’ll be back. Groveling. Way to shoot yourself in the foot NBC. I didn’t watch that network anyway. The only thing on that network is Heroes (which I don’t watch or care to watch) and long-in-the-tooth Law and Order (which can’t compare to any of the CSI franchises).
“Canada is a very small market compared to Asia, the UK and the rest of Europe. Thus, despite its geographical proximity, it is only slightly ahead of Australia on the priority list.”
This is the farthest from the truth. It technically is the easiest market for Apple to add. Canadians are just Americans with a government that treats them like children. Such outdated ridiculous laws as CANCON (Canadian Content) and telecommunication laws are hurting Canadians when it comes to technology. Apple doesn’t think Canada is too small. Canada is actually quick easy money for Apple. It is the Canadian laws and regulations that are stopping Canada from getting these cool Apple products.
Hanging my head in shame, and yes I am a Canadian. Let’s put the blame where it belongs and kick those old farts out of Government.
On the eve of Apple releasing a true Video iPod ( perhaps)
An event that will drive video demand on iTunes, Universal takes a 44 magnum to its own swede. Great timing.
EyeTV and TIVO all allow you to rip, convert (H264) and sync. At $1.99 users might just not be bothered to do that, at $5 most will save the cash. Now, you don’t even have to make a choice, Universal has done that for you. EyeTV and a few clicks plus a sync isn’t so much more than a download and now VIDEO iPods will continue to scream off the shelf and Universal will get zip.
Does Ballmer work as an executive consultant for UNIVERSAL ?
NBC is still around?
Haven’t made a point to watch NBC since the gold old days of Cheers, Night Court, and Carson’s Tonight Show.
Although they do have Jeopardy! and the still-good local news desk, but neither would really be top iTMS material.
I CANNOT access to Apple site at 1:00 AM Sat.1 Sept. (Central Europe Time)
Is this only me? Can anyone try?
NBC needs to learn something I learned long long ago:
“10% of something is always better than 50% of fsck all”
Side note: Be careful if you are using Charter Cable (at least in Wisconsin) they are starting to send out notices that they have noticed TV downloads from your (the recipient of the letter) internet connection and that there will be no further warning before reporting the activity to the proper authorities.
Fsck ’em. They’re whining because you’re actually using the bandwidth you’ve paid them for. It’s an easy out for them.
Heh, if they’re watching what you do, give them something real to worry about. Google for info on how to circumvent Charter a bunch of times…
The Axis of Evil – News Corp., Microsoft, and Time-Warner. Yikes.
Upset to upset for words today, not sure
I have seen hulu, I’m sure it will work sometimes not others.
I am not going to use it I think, I believe. I am just put of by the ordeal , I am just to not even going to use itunes also.
Back to buying DVDs in fact not even that; I am just going to do more with outdoors.
If these are what we have to go through even time an exec gets upset, consumers are sick of these shock, surprise tactics.
>> Universal shame on you,
Life is hard enough we don’t trust you anymore or your HULaHoop website which if your hand is like this now, I am sure you will charge for some episodes and more for the best seasons or who knows but I’m sure you will stuff us around and stop when I am lest expecting.
So no way; you have showed what you like why should we think Hula hoop will be better its geared at’ MSN LOL
IF there is a reliable service for customers and things are going OK why do you ruin this, Sad I am.
Its really hurting the USA and giving capitalism a bad name.
Another reasons why piracy never is going to end
” width=”19″ height=”19″ alt=”wink” style=”border:0;” /> Universal is one of the favorites target of pirates……so I’m.
In the mean time, Apple is working with partners to completely bypass the networks, the cable distributors and Hollywierd middleBronfman types. The bozos are headed for the dustbin of history.
NBC
Nothing
But
Crap !
they should sell those TV shows for zune, people who paid for zune will happily pay for these TV shows
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This sucks…
You’ve ALL missed the point to NBC’s actions:
They wanted to price their shows WAY above what anyone would be willing to pay on iTunes ON PURPOSE…to end their relationship with Apple/iTunes…and DRIVE ALL THEIR VIDEO BUSINESS TO HALA.
What better way to start up that new video business. Artificially create a pent-up demand for their shows. But they will fail, of course.