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NBC pulling out of iTunes.


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Well, after just a while ago with the whole Universal pulling out of iTunes fiasco, it seems that NBC is following the same path now. It seems that NBC and Apple are unable to come to a mutual agreement regarding pricing, which seems much more of a valid reason (albeit very greedy) than what Universal's excuse was....which was iTunes has a monopoly and is not allowing equal competition from other online music stores, especially when their (Universal's) catalogue was flourishing on the iTunes store.

 

Currently, NBC's offerings go for $1.99 on iTunes (TV shows), and they wanted to double their gain on iTunes by asking Apple to charge users $4.99 per episode. Talk about being greedy, sheesh. Apple, as a result declined this, and has stated that other media companies, such as FOX, The CW, ABC and CBS are quite fine with $1.99 and are on the catalog still.

 

Eddy Cue, who is the VP of iTunes, has stated this in reaction:

 

"We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase, We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers."

 

Nevertless, the NBC aired shows will still be on iTunes up until the end of this year.

 

Full press release @ Apple


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$5 is just too much for a 30 minute show

24 minutes really.

 

Its amazing how much some of these companies are behind the times and don't understand how the market is changing.

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You don't actually know what Apple was originally charged by NBC for each episode and what there % profit was on each show. If NBC put up their charge then Apple applies the same % profit it could easily ramp up to $3.99. Who's the greedy one.

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You don't actually know what Apple was originally charged by NBC for each episode and what there % profit was on each show. If NBC put up their charge then Apple applies the same % profit it could easily ramp up to $3.99. Who's the greedy one.

As the end user I don't care who makes what. It's up to these companies to come to a workable solution.

NBC has the product, Apple has the delivery method.

 

My guess is a lot of people are like and don't want to be members of a bunch of different sites to get my content. Right now iTunes seems to be the biggest/best and it works. I've bought more in the last year on iTunes than I've bought from "normal" multimedia sources in the last 5 years.

 

So unless these companies come out with a compelling reason to use something different (highly unlikely), basically they lost all income from me once they are off iTunes.

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You don't actually know what Apple was originally charged by NBC for each episode and what there % profit was on each show. If NBC put up their charge then Apple applies the same % profit it could easily ramp up to $3.99. Who's the greedy one.

 

iTunes only gets a few cents off of each sale. The rest goes to the company. Now shut up and troll elsewhere.

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That's too bad. Heroes, one of the best shows ever in my opinion, is put out from nbc.

And they have a promising fall lineup, too.

I guess I won't feel guilty about 'pirating' their shows now, though.

And even if they agree to the 1.99 price, I sure as hell won't be paying them anything anymore.

NBC... you just made up my mind. Never will you recieve another of my dollars, no matter what.

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You don't actually know what Apple was originally charged by NBC for each episode and what there % profit was on each show. If NBC put up their charge then Apple applies the same % profit it could easily ramp up to $3.99. Who's the greedy one.

 

But Apple rejected the price increase....which would mean they are not the greedy one....NBC is. Moreover, Apple makes (this was said by Steve Jobs himself) next to nothing from iTunes...the vast majority of the revenue goes to the music labels/production studios. It's simple NBC being $$ hungry, which is wrong when you are already making a heck load of dollars in the millions from the iTMS.

 

There is an old saying that goes you never kick the ladder once you are on top. The same thing applies for NBC (and Universal as well). They will regret it, there is no doubt in that. What other alternative popular all-in-one music service is there? None. It's just too bad NBC's next route of selling (if you can even call it that) will be through BitTorrent. It's inevitable.

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Hey, Admin:

 

Claims on the front page that iTunes Music Store removed NBC shows---are WRONG. The NBC shows are still there as of 9:30pm EST Friday (August 31).

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There is an old saying that goes you never kick the ladder once you are on top. The same thing applies for NBC (and Universal as well). They will regret it, there is no doubt in that. What other alternative popular all-in-one music service is there? None. It's just too bad NBC's next route of selling (if you can even call it that) will be through BitTorrent. It's inevitable.

Agreed.

I gotta think NBC must know that @ $4.99 that would kill their sales anyways, and some how in their minds they think this would drive up sales of Season DVDs. Wrong there too.

 

(Other than the odd spur of the moment sales, who would pay 21 episodes x $4.99 over paying $25 for the entire season on DVD?)

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Hey, Admin:

 

Claims on the front page that iTunes Music Store removed NBC shows---are WRONG. The NBC shows are still there as of 9:30pm EST Friday (August 31).

 

Ok, update, it seems to be back now....weird. When I checked, on the side columns...NBC/sports, etc, was not there. Now they seem to be back. Wonder what that was all about. :D

 

The news is that Apple does not want to wait until the end of this year, and then losing the shows, which essentially leaves the NBC shows hanging half way through. Instead they play to cut from the start itself....and that would mean removing the shows before Sept 1 (i.e today). They should go off soon.

 

Apple’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.

 

This is an excerpt from the release link I posted originally.

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In less than a decade I can easily see Apple as THE RECORD Company, the TV Network and The Film Company. It may not dominate in TV in film, but as a record company it will KILL the majors. Since I've worked most of my adult life in all three of those segments all I can say to Apple is "show 'em NO MERCY." They deserve nothing.

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I honestly don't think it was JUST greed on NBC's part... These people think in the long run. This seems more like a well thought out move.

 

I mean, NBC has very little to gain if "new" media, such as youtube and ITMS takes over. I mean, they're all about building monolithic towers in your town that broadcast only what THEY want you to see. Now that people can pull any episode of any obscure 1990s sitcom they want off of the internet, what's the use of those huge towers in people's backyards? They can't control it, and that's why they don't like it.

 

They may be able to be important figures in the new world if they play their cards right, but they won't have anywhere near the power (or profit margin) that they had during the 20th century. Their role will be reduced from an important cultural force, with unprecedented control over what people see, to mere content distribution.

 

There were two possible ways that this could have played out for them. Either Apple would have backed down and gone ahead and charged the amount they wanted, causing the other companies to jump on the bandwagon and demand more money too... Causing ITMS to basically stagnate and fail because they're too expensive....

 

...Or, less ideally but still advantageous, was the possibility of what actually happened. While ITMS still sells shows at 1.99, they've lost a good chunk of their lineup. Those shows are part of what attract people to the ITMS in the first place, and now that people can't get Heroes, for example, on their iPods and iPhones, they've basically lost every heroes fan who may have signed up for just that one show, but, out of convenience, kept shopping there.

 

NBC doesn't want more money; they want to destroy iTunes. Apple threatens their power as a media company. Only problem for them is, they don't understand that their fall is inevitable. Even if they manage to fatally wound ITMS, people will just turn to torrents in droves.

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Well, seeing apple's new line-up of iPods, it kind of strikes me that maybe the iPod in itself has enough... appeal... on its own that they don't really need NBC. I mean, apple may very well make this be the new way people consume TV shows.

 

I mean, NBC may be locking themselves out in the cold "when the revolution comes"...

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Um, Hi Knacker - I have some of the same concerns

but "NBC may be locking themselves out in the cold "when the revolution comes"...

implies that the delivery system is independent of the content.

 

The reality is that a good delivery system was essential to bring about a new "revolution," but so is content.

Comes down to what kind of {censored} people are willing to pay for, in order to be passive & not have to make their own entertainment.

 

This pricing structure was inevitable.

Its the same con being tried all over the web, as content goes to fees.

 

Its the drug dealer "free sample" model gone to the corporate world - heck, maybe it started there & got copied as the business model

for drug dealers, instead of the other way around.

 

The stuffed suits who run the networks are not that bright - they are trying to get all the market will bear.

In the process, they may be kill the goose giving the eggs.

 

Not many consumers have bottomless pockets loaded with discretionary coinage.

 

Ultimately THEY (networks) want to control the valve & collect the revenue & as is evidenced in general outsourcing - they have more attitude than brains.

 

When they are insulated from the content delivery - they don't care if they break various good delivery systems in finding the highest level of revenue

(thus, the most anyone in their right mind - or otherwise, would pay for boring content).

 

The quality of the experience isn't what they care about at this point, either.

So if they break a fairly elegant iTunes, which got them a foot in the door -- and a crappy alternative gets them more money, so be it.

It won't be about "feelgood" user experience until it hurts their pocketbook. That's the dirty little secret in our economic model.

 

 

One only has to look at the evolution of cable TV... to appreciate where this is going...

When that came out, people were promised full control. Choices. NO COMMERCIALS was what people thought they were paying for. Personal discretion.

Anybody believe that today?

 

Expect to get screwed. Lean back & enjoy the ride.

 

-=-=-=-=-=-

As an aside about content & delivery systems -

 

Compare what you get with the iPhone ---

Its a pretty nice device. Not entirely debugged & polished, but a nice first attempt.

 

If for some reason you tire of AT&T, or AT&T cops an attitude & pulls out of the APple deal, what have you got?

You have the same thing as a new video iPod - at steeper prices with smaller storage, but you paid for a phone as well.

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