“‘Apple has destroyed the music business,’ said Jeff Zucker, [President and Chief Executive Officer of NBC Universal], today at an event organized by the Newhouse School of Public Communications. ‘If we don’t take control on the video side, they’ll do the same’ to video,” David Schatsky blogs for Jupiter Research.
“Zucker made the comment in response to a question by moderator Ken Auletta of the New Yorker. (Auletta did a fabulous job of volleying one penetrating question after another at Zucker),” Schatsky reports.
“Zucker put in context the highly publicized conflict between NBC Universal and Apple over pricing on the iTunes TV show store. NBC sought to introduce flexible pricing; Apple refused,” Schatsky reports.
Full article here.
The Financial Times also has a report on Zucker’s comments, “‘We know that Apple has destroyed the music business – in terms of pricing – and if we don’t take control, they’ll do the same thing on the video side,’ Mr Zucker said at a breakfast hosted by Syracuse’s Newhouse School of Communications.”
“As part of NBC’s push for more flexible online pricing, Mr Zucker said he urged Apple for months to price one programme at $2.99 per download – as opposed to the current $1.99 – as an ‘experiment’ but was rebuffed by Steve Jobs, Apple’s chief executive.”
Full article here.
If by “destroyed,” Zucker means “saved,” then he’s completely correct.
I too was blind, but now I see.
These dolts can’t tell when their butt’s have been saved from their own incompetence and outdated business model. Well, perhaps they can but if they admitted it, they would admit to their own irrelevance.
And NBC had “saved” the news business…..
(and by “saved” I mean destroyed)
“Destruction leads to a very rough road
But it also breeds creation”
Red Hot Chile Peppers
Mr. Zucker needs to learn that if it ain’t available for a reasonable price it is always available for free on BitTorrent.
This is what I call “Creative Destruction”.
Sticks and stone, Jeffy. Sticks and stones.
He has to blame somebody.
Loser.
Zucker-Zucker, the money hungry – – – ker.
Apple has leap-frogged all you middlemen. Retire now, while you still have the chance.
And now you understand the creative power of Shiva the Destroyer (aka Transformer).
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The music business has been destroyed by the music labels all jumping on one bandwagon after the next, pushing the next boy band, Britney look-alike, and other fad after another until the person is so over-exposed no one wants to see them anymore.
Try finding some talented artists, letting them make their music, and let the creativity flow. THAT would save the music industry.
BTW, last time I checked, people hadn’t stopped listening to music. They just aren’t buying the crap shoveled at us anymore.
Let’s translate:
Destroyed = removed the record labels’ ability to gouge the hell out of consumers by charging 18-20$ for a CD with one good song and 9 crap songs. Sorry fellas, gonna have to cut back on the hookers and blow.
Ironically, MW is ‘value’
The link give almost no info on what went on at the discussion. NBC says they want to “experiment” with different business models or something. I love to know how they a justify giving up one business model which is actually making money before they have developed an alternate model.
“Flexible” can ONLY mean higher prices for consumers. Period.
Even if NBC adopted a $2.99 per tv episode download, that’s something like $70 for a season! Per consumer! And it’s not as good quality as a DVD, nor does it have the extras! Hummm oh I forgot, it’s about paying through the nose for convenience.
considering the source, this is unqualified praise. in the terms of the legacy “music business” model. this is quite true and it needed to be destroyed to save the consumer and content creator. kind of like destrying a champion thoroughbred on the track after it has broken an ankle. you do it to stop the suffering.
If the One is named Steve Jobs.
Just this caution: absolute power corrupts absolutely.
Who is Steve’s next victim? He has already proven he has little respect for Apple customers (shiny screens, corrupt iMovie replacement, no cash for phones, etc), so before we get so sumg about this, better listen for the sound of a guy in stealth Levis coming up behind us.
These suited fat cats kill me. They don’t have a problem with a world dominated by M$ (NBC has been in bed with them for years, i.e. M$NBC) but even the THREAT of a future digital world with terms dictated by Apple is untenable.
Yo, Zuck, kiss both cheeks, OK? What you forget is every one of us can get content anywhere, and paying for it is optional (Tivo/EyeTV/not to mention Bit Torrent, as someone already has). Just ask those record companies whose business you claim Apple (ha!) destroyed.
Unbelievable.
Peace.
Olmecmystic
In a GE company, if your not the #1 in the market, your sold off as weak value.
For Zucker he is weak value.
They follow an interview with him soft selling HULU on CNBC with their new commercial touting ‘unbiased’. What a Hollywood portrayal of themselves..
I hope 70% of the movies next year are just released digitally.
I can also believe that Zucker can’t remember when the problem of illegal downloads was the industries biggest problem.
Now it is the fact that one site has too much traffic, but they’ll sell movies to WalMART.
Give him a chance, he partnered with the enemy to make a ‘better’ alternative…Good thing he hasn’t run for President yet…He would make Iraq look like a good decision.
He will end up looking like a Merrill Lynch leader in the next 24 months.
I would back this comment only if they were going to experiment by lowering their prices. They are mad to think anyone would pay more money per episode.
This almost makes me want to start buying NBC stuff again just so I can stop buying NBC stuff again!!
Zuker!
‘nuf said.
Beatles: “All we are say—ing, is give peace a chance!”
Steve Jobs: “That’s for when NBC calls!”
Audience: Hilarious laughter.
Peace.
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Olmecmystic
The Music Business is dead!
Long Live MUSIC!!!
What a mucking foron!
Apple has saved from Big Music bloodzuckers.
What he meant to say was “Apple has destroyed our business model” – which is true