MacDailyNews - Where Mac news comes first

 MacDailyNews Poll

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

Macworld UK

TUAW

MacRumors

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Wed, Jan 07, 2009 - 08:13 PM EST  —  AAPL: 91.01 (-2.01, -2.16%)  |  NASDAQ: 1599.06 (-53.32, -3.23%)

Report: Apple and NBC Universal break off negotiations over iTunes Store TV shows
Thursday, October 25, 2007 - 11:10 AM EST

"Fans of such hit shows as 'The Office' are angry because Apple, feuding with NBC Universal over pricing, pulled all current NBC shows from the popular iTunes music store," Frank Ahrens reports for The Washington Post.

"And after Dec. 1, when Apple's contract with NBC expires, all shows that NBC Universal owns, past and present, will disappear from the site. That includes shows from Sci Fi, USA and Bravo cable channels," Ahrens reports. "NBC Universal confirmed that it sent a letter on Oct. 9 asserting that Apple is in breach of contract, though it is unlikely to pursue legal action. The two sides have stopped negotiating and there appears to be no resolution in sight."

"NBC said that before the breakup, its shows accounted for 40 percent of all the television programs purchased on iTunes; Apple said the number was closer to 30 percent," Ahrens reports. "NBC proposed a range of prices and packaging of shows on iTunes from 99 cents to $2.99, said a source close to the talks who spoke on the condition of anonymity because the proposal was confidential. Apple refused. In a press release, Apple said NBC proposed selling some shows for as high as $4.99, which NBC denies.

"NBC Universal's take from selling its shows on iTunes last year was far less than 1 percent of the company's total revenue -- only about $15 million, according to a source close to the situation who spoke on the condition of anonymity because the number has not been made public," Ahrens reports.

Ahrens reports, "NBC Universal spokesman Cory Shields said his company's programs help drive the sales of iPods. 'The iPod is only as good as the content on it,' he said."

More in the full article here.

[Thanks to MacDailyNews Reader "PK" for the heads up.]

MacDailyNews Take: How quickly they forget: "NBC is confident that the iPod exposure contributed to the rise [in ratings for 'The Office'}," Daisy Whitney reported for TV Week on January 17, 2006. Full article: NBC: Apple’s iTunes, iPod powering broadcast ratings for ‘The Office'.


  • Social Web
  • E-mail






Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: ( = registered)

Oct 25, 07 - 10:15 am Comment from: HeavyD

Buy elgato eye TV and record it for the iPod.

Oct 25, 07 - 10:16 am Comment from: Dave H

Except of course these days our Macs can just encode anything we record or rip into an iPod compatible format much quicker than they used to. If there's no content directly for sale, we can make our own.

Oct 25, 07 - 10:17 am Comment from: Eric

The Office isn't funny, so, who really cares?

Some of the other shows will be missed though.....BitTorrent will supply that for people I am sure....

Oct 25, 07 - 10:21 am Comment from: One is on the condition of anonymity

That doesn't make sense to tell someone who invented the product what to do. Demand someone to do their way. It is very unlikely how the partnership should work.

If NBC wants to sell TV contents on iPod, NBC should build its own server and sell m4v based video.

I think that would be solve the problem.???


(MDN magic word - somewhat)

Oct 25, 07 - 10:21 am Comment from: the other steve jobs

tivotool, tvshows.app, eyetv...

+

visual hub.

who the hell cares if the shirts at NBC are as dumb as rocks?

Oct 25, 07 - 10:22 am Comment from: Moorghan

Someone needs to tell NBC that if they don't want to sell us their "content", we'll be happy to get it other ways. I am perfectly willing to pay for The Office, but I'm not going to be forced to watch adds. Not anymore.

Every episode is available within a day or two on Limewire or Bittorrent. I encourage everyone to help end Universal's tyranny of the entertainment content industry.

Oct 25, 07 - 10:26 am Comment from: Crazy Ed

NBC and Universal need to wrap their minds around the future of TV and music, and that future doesn't involve broadcast times or CD's. Their feuds with Apple will only hurt themselves in the end.

Oct 25, 07 - 10:26 am Comment from: Macromancer

"NBC Universal's take from selling its shows on iTunes last year was far less than 1 percent of the company's total revenue -- only about $15 million"

Herein lies the shortsightedness of the soulless suits at NBC. This outlet is a promotional vehicle for the shows, not an end. This should be seen as a vehicle to drive higher viewership on the network itself, not an end to money making.

I for one will not pay anything more than a couple bucks for a show because to me its an impulse buy. Once they take it out of that category, I'm far less likely to buy. And by 'far' i mean never.

Oct 25, 07 - 10:27 am Comment from: John

I always love it when dirty laundry gets aired: "we wanted shows between $.99 and $2.99," according to NBC. "We were being forced to sell shows at $4.99" according to Apple. I have no idea what the truth of the matter is, but from past experience of my own, I'm 99.9% sure it's not either of these cases. Ahhh, business negotiations!

Oct 25, 07 - 10:27 am Comment from: Spelling Nazi

Addvertisments?

Oct 25, 07 - 10:28 am Comment from: CandTsmac

@ Moorghan

Agreed. To the torrent sites everyone. If they don't want to play fair, than neither should we.

F-em.

Oct 25, 07 - 10:30 am Comment from: Wingsy

What Apple should do is add DVR capability to AppleTV, and add a special menu to the screen to record any NBC show automatically. And then tell NBC to stuff it.

Oct 25, 07 - 10:30 am Comment from: Mike

I'm looking forward to the next phase of iTunes. Not sure exactly what it will be...but I feel it coming.

Oct 25, 07 - 10:31 am Comment from: xxX

NBC. Fuckem

Oct 25, 07 - 10:34 am Comment from: Steven

Screw NBC - make them pay for what they've done. Hulu? Please.

Oct 25, 07 - 10:36 am Comment from: Mental

Addvertisements might refer to

ADDed VERy TIring SElling moMENTS .

Just guessing, tho.

Oct 25, 07 - 10:36 am Comment from: the new guy

@John: Actually, the error is in this re-cap article. The press realese indicates that the $4.99 price was because NBC wanted to bundle 'hit' shows with garbage shows for a 'total package' of $4.99, without offering a way to just but the hit show. Apple's point was that the effective price (assuming you throw away the garbage show) was $4.99, and NBC claims thay you get 2 shows, so the price is really $1.99 + $2.99 for 2 'great' shows.

Oct 25, 07 - 10:40 am Comment from: BobM

"Shields said his company's programs help drive the sales of iPods."

So NBC's absence will make iPods less attractive? Get real!

Oct 25, 07 - 10:40 am Comment from: karrde97

I love how NBC is so concerned about getting money from us on shows that we watch for free anyway. I DVR everything I watch and FF through commercials. If a commercial looks interesting, I'll play it. Other than that, I just watch my show.

The only show on NBC I watch is Heroes. I was going to watch Bionic Woman until I saw a 15 minute preview. That kille dit for me.

Oct 25, 07 - 10:43 am Comment from: DWJ

If you listen closely, you can almost hear the bit torrent data streaming getting louder and LOUDER....

Oct 25, 07 - 10:45 am Comment from: Acetylcholinesterase

"That includes shows from Sci Fi, USA and Bravo cable channels, Ahrens reports."

That's a shame. I have Top Chef from Bravo on my iPhone right now. I guess I'll have to find another way.

Oct 25, 07 - 10:45 am Comment from: Egon

As if iPods only started selling when NBCs programs appeared on the iTunes Music store.

Stupid, just STUPID. I'm not payin 2.99 for an NBC show, they aren't that good.

The world is changing, these old school media companies are going to have to realize that if they treat people as criminals they are going to behave that way. Additionally, if you want to sell content that knowledgeable users can get for free, you can't be jacking with the price.

If NBC wants to make more money, maybe they sould have a few big wigs take a pay cut and MAKE BETTER SHOWS!!!

J

Oct 25, 07 - 10:45 am Comment from: Holy Mackerel

"Apple, feuding with NBC Universal over pricing"

Talk about 'spin-doctoring'. Apple was happy with the current pricing. It is NBC who is feuding with Apple to introduce variable pricing.

Oct 25, 07 - 10:46 am Comment from: Synthmeister

It doesn't surprise me that NBC wants to call the shots with pricing, distribution, etc. even though their demands are probably ridiculous. Every business wants to have "control" over every aspect of their product—just like Apple.

However, pulling their shows off iTMS before they've even come close to developing an alternate digital distribution network or two just seems plain dumb. $15 million is still $15 million no matter how big your budget is.

I still don't understand why the TV networks and the record companies don't just start their own online media stores, charge a reasonable price and ditch DRM. Then they could keep 100% of the profit and not be beholden to any software (Apple, Real, MS), hardware (iPods), retail (Walmart, Target, etc.)

I guess that's too rational

Oct 25, 07 - 10:47 am Comment from: JB

Screw NBC! Here's my solution: 1) Record NBC shows on a Series 2 Tivo, 2) transfer to Mac using TivoDecode Manager (iPod setting), import to iTunes, 4) watch on Mac or transfer to iPhone or iPod, 5) always, ALWAYS, skip through the commercials.

And what's with the assertion that NBC content drives the sales of iPods? What incredible hubris. The only reason The Office is still on the air is because of Apple and its customers. What a bunch of wankers we have over at Universal-NBC. Tools!

Oct 25, 07 - 10:49 am Comment from: Steev

NBC Buttholes.

How's that for a take up space low value post?

Oct 25, 07 - 10:53 am Comment from: Ferf Muckmeyer

HeavyD says it all - buy elgato eyeTV and you'll get all the programs you want for the iPod.

Oct 25, 07 - 10:56 am Comment from: choc

I was about to purchase Heroes, Season 1 from iTunes when all this came up. Some friends had recommended it to me. (They also said iTunes is the best way to watch TV . . . no commercials, watch when/where you want. To think you can buy back 8-16 minutes of your life from the networks for $1.99 ($0.12-$0.25/minute) AND be entertained at your convenience.)

I didn't go out and buy the show on DVD and Tivo Season 2. I decided to boycott NBC Universal for their stupidity. No Heroes. No The Office. No SNL. No House (produced by NBC Universal, shown on Fox and no longer on iTunes). No NBC Universal TV shows period--on TV, on DVD, or on the Web.

Apple has presented a fair and equitable pricing/availability structure, and the studios are getting greedy. There are plenty of other entertainment options available and consumers do not need to line the pockets of the media-fascists any longer. Boycott NBC Universal!

Oct 25, 07 - 10:58 am Comment from: Someone Else

I agree with Wingsy. If the studios play hardball with iTunes content, all Apple has to do is add DVR function to TV. To rub some salt into the wounds, add the ability to automagically remove ads. To avoid copyright hassles, make the recordings only viewable under iTunes/TV/iPods (Fairplay DRM). If Apple buys Elgato and Tivo, all this work is already done. The studios (at least NBC) don't know this could be the end of them if they don't play "nice".

Oct 25, 07 - 11:06 am Comment from: tt

I don't like the office anymore.

Oct 25, 07 - 11:08 am Comment from: BitME

Back to BitTorrent!

How much will that get NBC? Oh yea. Zero.

Oct 25, 07 - 11:15 am Comment from: mac user 47

No amount of spin can accurately say this is a good thing for Apple. Apple lost revenue, visitors (who might buy other itunes products incedently), prestige, bargaining power, and NBC is getting revenue from advertisers by showing The Office, Heroes, etc... on it's website.

Oct 25, 07 - 11:24 am Comment from: me

I am back to BitTorrent for The Office and I guess I will do the same for Battlestar Galactica. I have purchased all previous episodes from iTunes.

I like the MEDIUM, not the price.

Pitty NBC will be driving me back to piracy because of their short sightedness. I will NOT be purchasing DVDs.

Oct 25, 07 - 11:43 am Comment from: roger

NBC is forgetting that Season 4 of The Office has overall sucked pretty bad, so far. And what else does NBC have that's worth watching? Heroes -- No. NBC thinks it's hot but everyone I know is giving up on watching it, because it's not very good.

NBC = Nothing But Cancellations.

Fsck NBC.

Oct 25, 07 - 11:45 am Comment from: JadisOne

I could care less. NBC shows suck. All of them.

And the shows are just icing on the cake. The iPod knows its priorities which is why it sells - music. Not some stupid show about some woman with super hearing and legs she can't control or some show about a bunch of office misfits (which, thanks to the iPod was able to stay on the air).

NBC is definitely shooting itself in the foot.

Others agree.

Oct 25, 07 - 11:45 am Comment from: Demon

The loser is NBC, because as soon as you encode everything with Microsoft's DRM you loose 80% to 90% of the portable market and something like 25% or more of the home viewer market of Digital Media Market. The only way around this is to release the content DRM free which NBC will never do.
I've been using Elgato Eye TV and the H264 Turbo for about 6 months to record TV and encode it for my Apple TVs. I've simplified my home entertainment systems a lot as the Apple TV's contain all my Movies, Recorded TV, Video and Audio Pod Casts and all of my music too. No need to have more then one cable for the satellite and a receiver/decoder, 4 Mac Mini (1.83GHz Core 2 Duo, with 2GB RAM and 160GB Hard drives) each with a full copy of Eye TV, an Elgato HD TV USB receiver, an Elgato .H264 Turbo USB co-processor and an Apple Script I created to copy the H264 Apple TV Optimized files output by EyeTV to a centralized ITunes that runs on a New 24" iMac (with a 1TB Hard drive, a 2.8GHz Core 2 Extreme processor and 4GB of RAM). We can record any show and can program EyeTV to record anything up to 45 days in advance or as soon as the program listing is made available to the service and record up to 4 programs at the same time.
So, NBC is the looser....

Oct 25, 07 - 11:51 am Comment from: Linux Guy And Mac Prodigal Son

The networks syndicate the content that production companies create. Apple ought to deal directly with the production companies to put their products into the iTunes store and cut out the MiddleBronfmans of network TV.

Oct 25, 07 - 11:53 am Comment from: relax

This is good. If NBC ends up with a better way to sell their content it will create competition and everyone wins. (except the anti-trust lawyers)

If NBC falls flat it will show that the iTunes store is the only way to fly.

Why does everyone get so pissed off? It's NBC's right and responsibility to find the best business model.

And would everyone please stop using BitTorrent - if the networks lose eyeballs they will be forced to add more ad minutes to 60 minute blocks, decrease show budgets, go grazy working on DRM strategies, take fewer risks w/new shows because it will be ever harder to make a profit. They deserve to make a buck.

Oct 25, 07 - 11:58 am Comment from: NBC/Universal

NBC- People actually watch NBC?
CNBC- NeoCon flag-waving corporatist cheerleading- not to be confused with journalism.
MSNBC- The cable news without an audience. Remember that the MS in MSNBC stands for Microsoft.
SciFi-Geeks Gone Wild
USA- Reruns Gone Wild
Bravo- really. What's so bravo about Bravo?

Oct 25, 07 - 12:06 pm Comment from: Jooop

This is fucking stupid. I would buy episodes of The Office and 30 Rock to watch on my iPhone at the gym, but apparently NBC doesn't want my money. Keep living in the 20th century NBC, when people rushed home to watch a show "when it's on". The rest of us have moved beyond that.

And I think iPod sales will do just fine without your content, NBC.

Oct 25, 07 - 12:15 pm Comment from: d

down with BitTorrent. It's piracy. If you're too cheap to pay for a show then don't watch. Go shoplift a book and un-shoplift it a few days later when you're done, telling yourself it isn't stealing.

Oct 25, 07 - 12:20 pm Comment from: Synthetic Pentasaccharide Inhibitor

"Bravo- really. What's so bravo about Bravo?"

Top Chef and Woz's girlfriend is occassionally funny.

Oct 25, 07 - 12:21 pm Comment from: Synthetic Pentasaccharide Inhibitor

"Go shoplift a book and un-shoplift it a few days later when you're done, telling yourself it isn't stealing."

Or get a library card.

Oct 25, 07 - 12:28 pm Comment from: KillBill

d claims "down with BitTorrent. It's piracy."

NBC is the criminal here. Unfair-abuse of consumers describes their idea of a good commercial transaction.

If a supplier boycotts the distribution channels or tries to overcharge then it is not theft but "fair-use"

BTW, seen the new MSNBC advertising... it prominently features a Zune. How freakin' zuneless are they?

Oct 25, 07 - 12:29 pm Comment from: d

A library card is better still except it doesn't help me make my point 8-)


BTW - Our local library draws from a huge multi-county system and lets me reserve on line and pick up here in a few days. A great way for me to get TV series and audio books. My taxes pay for it anyway,

Oct 25, 07 - 12:29 pm Comment from: Rudge

I've been watching NBC the old fashioned way; time taping shows on the old VCR. I know; it's so 20th century! grin Ironically, I've only taped one show on NBC this whole season, one show on USA, and I haven't watched anything on the Sci Fi Channel in ages. The idea of spending any money to view this dreck is completely beyond me.

Because NBC-Universal shoots itself in the foot over extra money, they deserve what they get out of this; absolutely nothing. In the meantime, computer people are going to be using their work-around methods to get their shows onto their iPods. Only now NBC-Universal won't be receiving a check for it.

Apple tried to keep everything above board and everybody got their piece of the action. Now it merely greed that made this happen. Too bad.

Oct 25, 07 - 12:38 pm Comment from: MacGuy

Still don't get it why not just let people charge whatever they want.... free market anyone heard off lately, has Steve gone down the Left coast brain drain?

Oct 25, 07 - 12:38 pm Comment from: en

Wow.
Some really strong sentiment here. I was a little pissed at NBC Universal too. But I figure if that Hubu or Youbo, or what ever takes off, great. I can watch it there for free. If they think I am going to pay them for some weird MS DRM version, they are crazy. Maybe they can sell it for the Zune 2 market. grin

If they sink, and history says that they will, it will really show the other networks that if it don't fly on Apple iTunes, it aint going to fly.

Sounds good to me. grin

en
MDN = wrote. As in Thats all she wrote!

Oct 25, 07 - 12:40 pm Comment from: MacGuy

"NBC proposed a range of prices and packaging of shows on iTunes from 99 cents to $2.99"

and the problem is???

Oct 25, 07 - 01:02 pm Comment from: @Macguy

I think this situation IS an example of a free market at work. Just because NBC wants to charge $2.99 per episode for Heros, doesn't mean that Steve has to sell it.

grin

Reader feedback page 1 of 2 pages:  1 2 >

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my info   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below: