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zionlion

Bye Bye NBS Shows on iTunes

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Checkout this press release from Apple:

 

CUPERTINO, California—August 31, 2007—Apple® today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunes® Store (www.itunes.com). The move follows NBC’s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.

 

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”

 

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. NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.

 

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

 

Thoughts?

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Now people don't have much of a reason to be legit (if NBC sold shows on iTunes for $4.99). Who would pay $4.99 for a TV show? NBC is encouraging more piracy and purchases of DVR/PVRs this way.

Edited by cherry su

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IMO this will only fuel piracy, I for one have been getting my shows from "other sources" as living in the uk offers no other options.

 

NBC are being crazy stupid, this is further validation of an industry still living in the dark ages and having little to no understanding of tech.

 

Well done Apple!! I have waited a long time to feel proud of you :-)

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Sorry for the typo in the thread heading "NBS" could the "S" stand for Stupid?

 

Man Im extra cranky now ;-)

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Sorry for the typo in the thread heading "NBS" could the "S" stand for Stupid?

 

Man Im extra cranky now ;-)

 

Well, they did use NBS as the fictional network for Studio 60 on Sunset Strip (a 'fictional' Saturday Night Live) which was the best show they had last year and cancelled it. I had thought the S was System, but, you're right, it IS Stupid.

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IMO this will only fuel piracy, I for one have been getting my shows from "other sources" as living in the uk offers no other options.

 

NBC are being crazy stupid, this is further validation of an industry still living in the dark ages and having little to no understanding of tech.

 

Well done Apple!! I have waited a long time to feel proud of you :-)

 

I agree, at $1.99 they probably had decent sales, but for $5 an episode they will just be stolen.

 

Why can't the old media folks get it?

 

roog

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I think that NBC will cave in, well nearly all of there onlne sales come from iTunes, i think they are just bluffing

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I think NBC gets the most money from other sources than iTunes, so they will not suffer (much) from this loss. I think after they've experienced how difficult it is to run your own online video store, they come crawling back. However, I don't expect this to be any time soon, and I don't expect NBC to cave in.

 

I guess their reasoning is that in iTunes they can't ask more than $1.99, but in their own NBC run store, they can ask as much as they like, because people love NBC shows, don't they? And people pay what NBC thinks is reasonable--they wish ;)

 

However, if they do it unDRMed, they can still win this case. I don't expect they'll do that, though, which saddens me. Poor, misguided NBC.

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Just picked up this post, it outlines NBC's response to Apple.

 

It seems that NBC want Apple to increase DRM to reduce piracy and use the reasoning that most iPods are full of stolen media.

 

Did I read the post correctly and are NBC calling "most" iPod owners thief's?

Edited by zionlion

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I think you refer to the sentence

Shields said the company also wanted Apple to do more about piracy “since it is estimated that the typical iPod contains a significant amount of illegally downloaded material.”

Well, if that estimation is correct, then NBCU is calling Apple a distributor of stolen goods. I think what they mean is that Apple allows several copies of the same content to be used on several devices, and NBCU rather wanted that every copy has to be paid for. So it's $1.99 for a show on your harddrive, but if you want to transfer it to your iPod, you should pay another $1.99, and to your AppleTV, another $1.99. They reckon most users have two devices (computer and another device), so you have to pay twice the amount. That would explain the price increase. If their research found that more devices are used to watch their content, they'll increase the price even further, or start including ads in their content.

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i've heard the argument about iPod owners stealing music many many times before. Honestly it's getting old.

 

 

The comment about NBC wanting to charge extra for each device you use the content on is ridiculous. If you buy the DVD of a show do you have to pay extra to watch it on different TVs?

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Here's my thoughts. Apple should have gone along with it. Most retail stores stick somewhat close to MSRP, NBC could be seen as the manufacturer in this case and their suggested price was 4.99. They would then begin to realize that they've priced themselves right out of the market. No amount of DRM on Apple's part can keep people from recording and distributing broadcast TV. I understand that Apple doesn't want to have a whole "Shows cost 1.99, except for NBC's shows which cost 4.99" type slogan, but I think it would be the easiest way for NBC to see that their sales would drop sharply and that 1.99 was a much more sensible option.

 

As for the iPod owners being thieves thing, I'd say most computer owners around my age and younger are thieves, and most of them don't know it. I've seen countless people just swap songs over college networks or IM as well as the whole, I just got a new CD do you want to copy it to your iTunes/Windows Media/Music Match etc. It has nothing to do with being an iPod owner or a bad person. Music copying has been going on since tape decks came out. People used to make mix tapes all the time from tons of original tapes or radio-recorded bootlegs. I'm not condoning breaking the law, I'm just saying that this is here to stay. No amount of DRM or legal action will stop this. Sorry to rant, but I feel that once again this point needs making.

 

-Tom

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I've heard Leo Laporte talk about this on his TechGuy podcast (#384), where he says that NBC wants to package their content. This means you buy a certain number of shows, some that you want, others you're not interested in, and they give you the package for a reduced price (compared to a single episode).

 

What do you do if people don't buy your crap? You sell it together in a package with the stuff they do want. The music industry used to do this (they still do, but now you can buy separate songs as well) with vinyl records, prerecorded tapes and CDs; the cable companies still to this with their package deals (there are talks about à la carte video on demand, but nothing has been finalized yet).

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I've heard Leo Laporte talk about this on his TechGuy podcast (#384), where he says that NBC wants to package their content. This means you buy a certain number of shows, some that you want, others you're not interested in, and they give you the package for a reduced price (compared to a single episode).

 

What do you do if people don't buy your crap? You sell it together in a package with the stuff they do want. The music industry used to do this (they still do, but now you can buy separate songs as well) with vinyl records, prerecorded tapes and CDs; the cable companies still to this with their package deals (there are talks about à la carte video on demand, but nothing has been finalized yet).

 

You make a good point about packaging "crap" with the good content and like you say its very prevalent with music, the record companies hate the fact that the end user can "cherry pick" media. This I think should raise the standard of production in future and NBC's latest bullying tactics are in my opinion the last stand of "Crap" dealers.

 

I cant remember the last CD I purchased that I liked more than 4 tracks, this is why I buy from iTunes, its a shame I have to mirror my legal tracks with ones from "other sources" to get the quality and freedom.

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I think NBC & Universal Studios have retained a lot of their Vivendi (Universal Music) roots and think they understand the current entertainment market better than Apple. I agree with others, they don't. And, between them they are HUGE content providers who will show everybody else the folly of their ways.

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