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Sun, Jul 05, 2009 - 12:04 AM EDT  —  AAPL: 140.02 (-2.81, -1.97%)  |  NASDAQ: 1796.52 (-49.20, -2.67%)

Apple CEO Steve Jobs slams door on NBC
Friday, August 31, 2007 - 03:32 PM EDT

Apple iTunes"Here's the latest advice from Silicon Valley to Hollywood: Don't cheat on Steve Jobs and then ask him to split the proceeds from the video," John Shinal reports for MarketWatch.

"That Apple will no longer distribute NBC television shows through its iTunes store should have surprised no one, of course," Shinal reports. "The love went out of this marriage back in March, when NBC Universal formed a joint venture with News Corp. for a new Web-based video network to be distributed through Yahoo Inc., Microsoft Corp.'s MSN and Time-Warner's AOL unit."

"The Apple-NBC story in a nutshell is that NBC Universal executives did a bad impersonation of Marlon Brando and made Jobs an offer that he couldn't accept," Shinal reports. "According to the release from Apple, NBC's offer would have forced the Cupertino, Calif.-based company to raise the price of an episode to $4.99 from $1.99. Rather than wait until December, when the current agreement ends, Jobs slammed the door on the relationship."

"The question now is who will be more hurt by the split," Shinal reports. "Apple itself says that about 30% of its iTunes TV episode sales come from NBC shows, including some of the most popular on the site. That could ding revenue growth, but probably not profit, because Apple uses content as something close to a loss leader to spur iPod sales. For NBC, though, the divorce means it loses its best Web-based distribution tool before the joint venture with News Corp. is up and running."

Shinal reports, "There is still no firm date for when consumers will be able to watch shows on Hulu, and the chances of it going smoothly are low, for at least three reasons."

Full article here.

[Thanks to MacDailyNews Readers "Fred Mertz" and "Linux Guy And Mac Prodigal Son" for the heads up.]

MacDailyNews Note: Please see related article: NBC: Apple’s iTunes, iPod powering broadcast ratings for ‘The Office’ - January 17, 2006

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Aug 31, 07 - 03:37 pm Comment from: rsbell

Screw Universal. Nevermind, they just did that to themselves...

Tech Shizzle

Aug 31, 07 - 03:39 pm Comment from: Mac n' Cheese

Amen. This hurts Universal more than Apple.

Aug 31, 07 - 03:39 pm Comment from: Rob

"According to the release from Apple, NBC's offer would have forced the Cupertino, Calif.-based company to raise the price of an episode to $4.99 from $1.99. Rather than wait until December, when the current agreement ends, Jobs slammed the door on the relationship."

Five Bucks an episode?!?!?!?! That's rediculous! I don't know anyone with half a brain that would pay that much for 1 TV show. Two Bucks was bad enough (that's around $44-$48 per season), considering most TV seasons on DVD cost less than that. Jobs is right to show NBC the door.

Aug 31, 07 - 03:42 pm Comment from: No Squirt For You

Hulu?

WTF?

Aug 31, 07 - 03:44 pm Comment from: Mac OS X System-Wide Dictionary

Not only is it "rediculous," it's ridiculous, too!

MDN MW: "business," as in we're going seriously hurt NBC's "business."

Aug 31, 07 - 03:46 pm Comment from: schmluss

Hulu? WTF is right. That sounds like all of the other WMV also-rans. By the time they "get it up" they may as well just take it right back down. NOTHING is as easy as iTunes+iPod+iPhone+AppleTV! This is a joke. Last season, when I missed an Office episode it was off to iTunes to download it. Now it will be off to BitTorrent. Ha ha.

Aug 31, 07 - 03:48 pm Comment from: Cleetus

fyi-

NBC/Universal (owned by General Electric) is a completely different entity than Universal Music Group (owned by Vivendi) though they both appear to be run by greedy f*cktards...they're just not the *same* greedy f*cktards...

Aug 31, 07 - 03:49 pm Comment from: CanuckMac

When is Apple going to offer movies and TV shows on iTunes to Canadians? The Brits will be getting it soon but not us who are right next door. Was up with that? I would definitely buy movies from iTunes especially since I already purchase music there. This also brings me to the subject of iPhone availability in Canada... What gives?

Aug 31, 07 - 03:51 pm Comment from: R2

I thought Safari was supposed to block popups? There's nothing worse than these MDN ads on an iPhone.

Aug 31, 07 - 03:53 pm Comment from: Crabapple

The bar was set ages ago, but those GREEDY bastards turned a blind eye to the fact.

When the processor manufacturers stopped developement for Apple's Pc's, Apple simply Shut the door to the manufacturer & signed a deal with another, Motorola, IBM & then Intel.

So this event serves notice to content makers who intend to make profits via itunes, accept the profit margin you are making as a fair level margin or else loose that margin all together.
If your business decisions are loosing you money, don't cover up your error via higher charges.

They have made money through advertising on the networks, subscriptions, lending and selling, why the hell should they then demand more for a lower quality product that has a zero production cost?

Aug 31, 07 - 03:53 pm Comment from: MuzoInOz

Jobs' response is the proper reaction to these mindless phuques!

Aug 31, 07 - 03:53 pm Comment from: this

I wouldn't buy the shows when they were $1.99 each. I would've bought them at $0.99 each but $4.99???? No way.

Aug 31, 07 - 04:03 pm Comment from: Reclaimer

I'd tell those greedy bastards to suck it. Plenty of other content out there anyway.

NBC… Nothing But Crap

Aug 31, 07 - 04:03 pm Comment from: Digitalis Vaginitis

$4.99 / episode is obscene. The casualty from the Apple side is not iTunes, which is a low margin offering too bolster iPod, and not iPod, which has an almost infinite amount of audio content available. Rather, it's AppleTV, which, lets face it, without video content, is toast. Probably why Steve called it a hobby; he doesn't want Hollywood to think they have leverage by threatening to leave it stranded.

Aug 31, 07 - 04:07 pm Comment from: pr

The networks are increasingly desperate for sources of revenue and clearly the $2 price wasn't doing it for NBC. With iTunes, Tivo, other DVR's, and other things to consume people's time...NBC Universal believes it can better profit from it's own powerful promotional tool (NBC itself) and from building it's own delivery system. They may be right... we don't know what price they will charge but I'm going to bet it will be around $2 an episode on Hulu with more money charged for special programming (interviews with the stars, behind the scenes shows, downloads of shooting scripts, show guides, and more.

Aug 31, 07 - 04:10 pm Comment from: Northerncal98

Greedy frictards!

Aug 31, 07 - 04:11 pm Comment from: Gandalf

Jobs vs Murdoch, should be interesting.

Aug 31, 07 - 04:15 pm Comment from: Markim

Well, they should sell TV shows for $4.99. I think it is an excellent idea. Profits will be huge. - Hey, I am sarcastic!!! C'mon, don't these guys have any clue about the market. One must really be desperate to pay $4.99 for a TV show. I bought some TV shows before from iTunes and thought that $1.99 was enough since you can't even make a DVD out of it. But still, it was acceptable. But $4.99 is way out of line. - Still, they should try and sell them for $4.99, especially through a store other than iTunes. Let them see what happens. Not having your shows available on iTunes is bad enough, but asking in addition for $4.99 per show is simply lunatic.

Aug 31, 07 - 04:18 pm Comment from: Fighter of Freedom

"When is Apple going to offer movies and TV shows on iTunes to Canadians? The Brits will be getting it soon but not us who are right next door. Was up with that? I would definitely buy movies from iTunes especially since I already purchase music there. This also brings me to the subject of iPhone availability in Canada... What gives?"

Canada is a very small market compared to Asia, the UK and the rest of Europe. Thus, despite its geographical proximity, it is only slightly ahead of Australia on the priority list.

Aug 31, 07 - 04:18 pm Comment from: NBC & NewZ Corp

A company allied heavily with Microsoftopoly and NewZ Corp (of Faux Newz Channel infamy) is beneath my contempt. Steve was right to pimp slap them.

Aug 31, 07 - 04:21 pm Comment from: qka

Then ABC needs to get some popular programs.

ABC, owned by Disney. Disney, 30+% owned by Steve Jobs.

Aug 31, 07 - 04:22 pm Comment from: insider

You know what? iTunes sell Friday Night Lights for $40. While Best Buy sells it for $25 and on sell for this week at $20. How much is NBC want? Sh1t! How much is their cut on $25 vs. $40. Sound like greed to me. NBC does not have to pay for hosting, bandwidth, credit card transactions. All I have to say is F* em!

Aug 31, 07 - 04:26 pm Comment from: Jim

You think that's bad? I have to pay £135.50 every year for the BBC, and I don't even watch it!

Fookin BBC bastards!

Aug 31, 07 - 04:32 pm Comment from: Cubert

"Hulu?

WTF?"

Yeah, remember him - he was Sulu's evil twin in the original Star Trek.

tongue wink

Aug 31, 07 - 04:34 pm Comment from: Arnold Ziffel

Wait until Murdoch puts the screws to Walt Mossberg and we start

to see MS-friendly writings pouring out of what used to be the

WSJ. I predict in two years Mr. Mossberg will not be a part of the

slimy one's empire.

Aug 31, 07 - 04:37 pm Comment from: Cubert

Thanks for the new word - fscktards!!!

Going to use it often.

Also, do you yell out "Hey ma!" or "Brandeen!" every time you walk in the house?

Aug 31, 07 - 04:38 pm Comment from: Cubert

Holy crap! We're getting the whole Simpson's lineup here.

Welcome aboard Arnie!

Aug 31, 07 - 04:42 pm Comment from: Camel Milk Drinker

WSJ will be plugging the slimy one's ass to stop it dribbling after a shat!

Aug 31, 07 - 04:44 pm Comment from: Frank

They'll come around once they feel the only result from pulling a stunt like this is removing the shaft from their "hulu"

Aug 31, 07 - 04:46 pm Comment from: Artist

Should call it "HuKnew" after it dies a slow death

Aug 31, 07 - 04:54 pm Comment from: Georgy Porgy

Has anyone ever heard of MSNBC??
There's your answer! Ballmer, Inc. is always behind it somewhere, somehow.

Aug 31, 07 - 05:02 pm Comment from: Allen

I'm guessing that NBC wanted to raise prices for HD content that Apple will be announcing this coming Wed.

Steve Jobs probably wanted to keep the price at $1.99 while NBC said HD must go for $4.99.

I just can't think of any other reason why NBC would demand $4.99 for a low-res episode of a tv show UNLESS it was their intention to get out of the iTunes contract from the get-go.

Aug 31, 07 - 05:08 pm Comment from: ndelc

Let's see, we could continue making X amount of dollars selling our shows at $1.99 per episode, or NOTHING by having Apple shut us out for trying fleece the customers by selling shows for $4.99(!) an episode. And they chose to be dropped? I think the executives at NBC need to work on their basic math skills.

Aug 31, 07 - 05:30 pm Comment from: The Dude

A little birdy dropped by and told me about Azureus http://azureus.sourceforge.net/ and EZTV http://www.eztvefnet.org/frontpage.php and how great it works. For those seeking TV shows it works like a dream.

Side note: Be careful if you are using Charter Cable (at least in Wisconsin) they are starting to send out notices that they have noticed TV downloads from your (the recipient of the letter) internet connection and that there will be no further warning before reporting the activity to the proper authorities. Just FYI... Big Brother is not just a TV show on CBS. wink

The Dude abides.

Aug 31, 07 - 05:50 pm Comment from: hehehe

"...NBC Universal executives did a bad impersonation of Marlon Brando and made Jobs an offer that he couldn't accept..." The Godfather movies are owned by Paramount, I believe. Still, a great line!

Aug 31, 07 - 06:07 pm Comment from: JadisOne

They'll be back. Groveling. Way to shoot yourself in the foot NBC. I didn't watch that network anyway. The only thing on that network is Heroes (which I don't watch or care to watch) and long-in-the-tooth Law and Order (which can't compare to any of the CSI franchises).

Aug 31, 07 - 06:20 pm Comment from: Ontario

"Canada is a very small market compared to Asia, the UK and the rest of Europe. Thus, despite its geographical proximity, it is only slightly ahead of Australia on the priority list."

This is the farthest from the truth. It technically is the easiest market for Apple to add. Canadians are just Americans with a government that treats them like children. Such outdated ridiculous laws as CANCON (Canadian Content) and telecommunication laws are hurting Canadians when it comes to technology. Apple doesn't think Canada is too small. Canada is actually quick easy money for Apple. It is the Canadian laws and regulations that are stopping Canada from getting these cool Apple products.

Hanging my head in shame, and yes I am a Canadian. Let's put the blame where it belongs and kick those old farts out of Government.

Aug 31, 07 - 06:52 pm Comment from: max

On the eve of Apple releasing a true Video iPod ( perhaps)

An event that will drive video demand on iTunes, Universal takes a 44 magnum to its own swede. Great timing.

EyeTV and TIVO all allow you to rip, convert (H264) and sync. At $1.99 users might just not be bothered to do that, at $5 most will save the cash. Now, you don't even have to make a choice, Universal has done that for you. EyeTV and a few clicks plus a sync isn't so much more than a download and now VIDEO iPods will continue to scream off the shelf and Universal will get zip.

Does Ballmer work as an executive consultant for UNIVERSAL ?

Aug 31, 07 - 07:04 pm Comment from: tuned out

NBC is still around?

Haven't made a point to watch NBC since the gold old days of Cheers, Night Court, and Carson's Tonight Show.

Although they do have Jeopardy! and the still-good local news desk, but neither would really be top iTMS material.

Aug 31, 07 - 07:07 pm Comment from: QS

I CANNOT access to Apple site at 1:00 AM Sat.1 Sept. (Central Europe Time)
Is this only me? Can anyone try?

Aug 31, 07 - 07:20 pm Comment from: MacMaster

NBC needs to learn something I learned long long ago:

"10% of something is always better than 50% of fsck all"

Aug 31, 07 - 07:20 pm Comment from: charter this

Side note: Be careful if you are using Charter Cable (at least in Wisconsin) they are starting to send out notices that they have noticed TV downloads from your (the recipient of the letter) internet connection and that there will be no further warning before reporting the activity to the proper authorities.

Fsck 'em. They're whining because you're actually using the bandwidth you've paid them for. It's an easy out for them.

Heh, if they're watching what you do, give them something real to worry about. Google for info on how to circumvent Charter a bunch of times...

Aug 31, 07 - 07:51 pm Comment from: Majikthize

The Axis of Evil - News Corp., Microsoft, and Time-Warner. Yikes.

Aug 31, 07 - 08:11 pm Comment from: anthony, Unhappy.

Upset to upset for words today, not sure

I have seen hulu, I'm sure it will work sometimes not others.
I am not going to use it I think, I believe. I am just put of by the ordeal , I am just to not even going to use itunes also.

Back to buying DVDs in fact not even that; I am just going to do more with outdoors.

If these are what we have to go through even time an exec gets upset, consumers are sick of these shock, surprise tactics.
>> Universal shame on you,


Life is hard enough we don't trust you anymore or your HULaHoop website which if your hand is like this now, I am sure you will charge for some episodes and more for the best seasons or who knows but I'm sure you will stuff us around and stop when I am lest expecting.

So no way; you have showed what you like why should we think Hula hoop will be better its geared at' MSN LOL

IF there is a reliable service for customers and things are going OK why do you ruin this, Sad I am.

Its really hurting the USA and giving capitalism a bad name.

Aug 31, 07 - 08:25 pm Comment from: Tommy

Another reasons why piracy never is going to end wink Universal is one of the favorites target of pirates......so I'm.

Aug 31, 07 - 08:29 pm Comment from: Linux Guy And Mac Prodigal Son

In the mean time, Apple is working with partners to completely bypass the networks, the cable distributors and Hollywierd middleBronfman types. The bozos are headed for the dustbin of history.

Aug 31, 07 - 08:48 pm Comment from: Northerncal98

NBC

Nothing

But

Crap !

Aug 31, 07 - 08:58 pm Comment from: easyeye

they should sell those TV shows for zune, people who paid for zune will happily pay for these TV shows smile

Aug 31, 07 - 09:15 pm Comment from: SCY

This sucks...

Aug 31, 07 - 09:28 pm Comment from: Jay

You've ALL missed the point to NBC's actions:

They wanted to price their shows WAY above what anyone would be willing to pay on iTunes ON PURPOSE...to end their relationship with Apple/iTunes...and DRIVE ALL THEIR VIDEO BUSINESS TO HALA.

What better way to start up that new video business. Artificially create a pent-up demand for their shows. But they will fail, of course.

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