NBC pulling out of iTunes
August 31, 2007
Digital trends report that:
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Less than two months after Universal Music decided not to enter into another year-long music distribution with iTunes Apple looks to be facing another high-profile defector from its digital media offerings: according to The New York Times, related company NBC Universal will not be renewing its deal to distribute digital versions of its television shows via the iTunes store.
The pull-out would not only impact shows like Heroes and The Office from the NBC broadcast network, but also shows from NBC Universal’s sibling networks like the Sci-Fi Channel and USA, so shows like Battlestar Galactica and Monk would also disappear.
ABC would like to be able to charge more for recently broadcast, popular shows in order to maximize revenue, while discounting shows in its back catalog (like, say, the original season of Law & Order, which aired umpteen years ago) in order to encourage sales.
Although NBC Universal does not currently offer Universal movies for sale via iTunes, the company would reportedly like to offer bundles of its TV shows with its movies.
Apple has historically favored consistent, across-the-board pricing, arguing differential pricing confuses and irritates consumers, which leads to fewer sales.
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Does it have anything to do with Hulu? Maybe! But it is certainly a sad news for current U.S. iTunes users.
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