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Apple to stop selling NBC Shows on iTunes over Pricing Spat

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Saturday, September 1st, 2007 | Related entries: Internet

iTunes-NBC Deal Ends

Apple iTunes Store will no longer carry television shows such as Battlestar Galactica, Heroes and other NBC shows. The company has reportedly announced that its iTunes Store will not be selling any NBC Universal television shows for the upcoming season due to a contract dispute with the content provider.

Apparently, NBD decided not to renew their contract with Apple for the distribution of their TV programmes through iTunes. Apple charges $1.99 for TV episodes, but it looks like NBC wants to have more say in this matter with regards to pricing.

In fact in this price spat between Apple and NBC, the iPod-maker said that NBC had demanded more than double its previous wholesale price per episode.

Since the two sides have been unable to reach middle-ground on this issue, Apple has said that it would start pulling NBC’s programming off iTunes by September 2007. Meanwhile, NBC has already informed Apple that it would also be pulling its Tv shows from iTunes as soon as the contract expired.

Interestingly, NBC is the biggest provider of video downloads on Apple’s iTunes Online Store. In fact with hit shows from NBC such as Battlestar Galactica and 30 Rock, this deal was proving to be quite a success in itself.

Thus, this loss will hurt not only Apple big time, but also NBC. In a statement, Eddy Cue, Apple’s vice president of iTunes said, “We are disappointed to see NBC leave iTunes. We hope they will change their minds.”

But, it’s not very surprising to know that Apple refuses to budge on its pricing policies. In fact, the fact that NBC Universal has resorted to such harsh tactics, clearly illustrates the unrest among content providers regarding Apple’s pricing policies.

But, this tiff between Apple and NBC is not only confined to prices as NBC Universal also wants iTunes to stiffen its anti-piracy provisions, so that computer users would not have easy access to illegal downloads.

Apple’s iTunes may have lost one of its biggest players in the form of NBC Universal. However, on the plus side, Apple also announced only recently that TV shows from other equally big content providers including ABC, Disney, MTV, Nickelodeon and Paramount Comedy are now available on iTunes.

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