“Fans of such hit shows as ‘The Office’ are angry because Apple, feuding with NBC Universal over pricing, pulled all current NBC shows from the popular iTunes music store,” Frank Ahrens reports for The Washington Post.
“And after Dec. 1, when Apple’s contract with NBC expires, all shows that NBC Universal owns, past and present, will disappear from the site. That includes shows from Sci Fi, USA and Bravo cable channels,” Ahrens reports. “NBC Universal confirmed that it sent a letter on Oct. 9 asserting that Apple is in breach of contract, though it is unlikely to pursue legal action. The two sides have stopped negotiating and there appears to be no resolution in sight.”
“NBC said that before the breakup, its shows accounted for 40 percent of all the television programs purchased on iTunes; Apple said the number was closer to 30 percent,” Ahrens reports. “NBC proposed a range of prices and packaging of shows on iTunes from 99 cents to $2.99, said a source close to the talks who spoke on the condition of anonymity because the proposal was confidential. Apple refused. In a press release, Apple said NBC proposed selling some shows for as high as $4.99, which NBC denies.
“NBC Universal’s take from selling its shows on iTunes last year was far less than 1 percent of the company’s total revenue — only about $15 million, according to a source close to the situation who spoke on the condition of anonymity because the number has not been made public,” Ahrens reports.
Ahrens reports, “NBC Universal spokesman Cory Shields said his company’s programs help drive the sales of iPods. ‘The iPod is only as good as the content on it,’ he said.”
More in the full article here.
[Thanks to MacDailyNews Reader “PK” for the heads up.]
How quickly they forget: “NBC is confident that the iPod exposure contributed to the rise [in ratings for ‘The Office’},” Daisy Whitney reported for TV Week on January 17, 2006. Full article: NBC: Apple’s iTunes, iPod powering broadcast ratings for ‘The Office’.