“NBC Universal topper Jeff Zucker warned Monday that new digital business models are turning media revenues ‘from dollars into pennies’ and revealed that NBC U booked just $15 million in revenue during the last year of its deal with Apple’s iTunes,” Michael Learmonth reports for Variety.
MacDailyNews Take: In January 2006, NBC stated that Apple’s iTunes Store and iPod powered broadcast ratings for “The Office.” How much is that worth?
Learmonth continues, “Interviewed by the New Yorker’s Ken Auletta at a benefit for Syracuse U.’s Newhouse School, Zucker described the impasse that led to NBC U’s decision not to renew its current iTunes deal, which expires in December. NBC U wanted to explore higher pricing for hit shows such as ‘Heroes’ by raising the price from Apple’s standard $1.99 to $2.99 on an experimental basis. ‘We wanted to take one show, it didn’t matter which one it was, and experiment and sell it for $2.99,’ he said. ‘We made that offer for months and they said no.'”
Learmonth reports, “In lieu of more flexibility on pricing, NBC U sought a cut of Apple’s hardware sales. ‘Apple sold millions of dollars worth of hardware off the back of our content, and made a lot of money,’ Zucker said. ‘They did not want to share in what they were making off the hardware or allow us to adjust pricing.'”
Full article here.
[Thanks to MacDailyNews Reader “Adam W.” for the heads up.]
We’re all for people getting fair compensation for their work, but not for work they didn’t do. Apple should never capitulate to forking over iPod royalties to greedy suits like Zucker whose hunger for money exceeds the bounds of propriety. Until Microsoft crossed the line with their derivative Zune failure, either in desperation or underhandedness, no device maker paid such royalties. AM/FM/Satellite radio makers do not pay content providers a royalty on each radio sold. TV makers do not pay content providers a royalty on each TV sold. Phonograph makers did not pay royalties to the labels on record players. Audio speaker makers pay no royalties to labels, either. The list goes on and on. Why should NBC Universal get a percentage of an iPod sale when NBC Universal content may never even be played on that iPod? Is NBC seeking a cut of revenue from TV makers such as Samsung, Sony, Sharp, Panasonic, etc.? Content providers that seek royalty payments on hardware devices are illogical, greedy, and severely out-of-touch. It’s no wonder Jobs told Zucker to go pound sand.
So, this is totally off-topic, but, you know, there’s this cool website Torrents.to. It searches major torrent sites for stuff. You just type in a search term, say, oh, we don’t know, “heroes” or “office” or any other random word, pick a torrent site to search and it returns results along with handy tabs across the top, so you can quickly conduct the same search on any major torrent site. It’s really pretty cool and works rather well. If you Google for “Mac BitTorrent Client,” a ton of results are returned, too.