CBS staying clear of iTunes price war as NBC intros new service
CBS Corp. said this week it has no interest in joining the ongoing battle against Apple over the pricing of television shows on its iTunes Store. Meanwhile, ringleader NBC has taken the first step towards launching its own, ad-supported service.
"We're sort of staying out of the battle," CBS chief executive Les Moonves told a Merrill Lynch investor conference on Tuesday. "We like our relationship with iTunes."
Moonves went on to say that iTunes is not a significant source of revenue for CBS, but that the network looks at the Apple download service as much as a promotional means for its shows as a financial vehicle.
Following a standoff in negotiations last month, NBC Universal -- which accounted for 30 percent of iTunes TV show sales -- decided not to renew its agreement with Apple after the iTunes operator declined to allow the TV studio more leeway over the pricing of its content sold through the service.
Although Apple claimed NBC's ultimate goal was to drive the cost of its shows from $1.99 to $4.99 a piece, NBC later disputed the claim, explaining that its intention was to institute "flexibility in wholesale pricing" and bundle shows together in more "attractive" ways.
Said NBC vice president of communications, Cory Shields, "It is clear that Apple?s retail pricing strategy for its iTunes service is designed to drive sales of Apple devices at the expense of those who create the content that make these devices worth buying."
Fox Television content supplier NewsCorp., which had appeared as if it was taking a neutral stance in the matter, later echoed NBC's call for a more flexible iTunes pricing structure, arguing that it should be the ones determining what the fair price for its content is, not Apple.
"We have a pretty limited relationship with Apple and we'll see how it goes," said NewsCorp. chief operating officer and president Peter Chernin. "I assume it will be prickly and dicey and contentious like all negotiations are and like all negotiations should be."
NBC and NewsCorp have stated that they plan to band together to form a new, ad-support online video venture called Hulu later this fall. Though CBS had been invited to join the upstart as a third partner, it declined the offer.
But in an unexpected move on Wednesday that has left more than a few industry watchers scratching their heads, NBC announced plans to also launch its own "NBC Direct" service through NBC.com. The on-demand service (also due this fall) will reportedly offer Heroes, The Office, Life, Bionic Woman, 30 Rock, Friday Night Lights, Late Night with Conan O?Brien, and The Tonight Show with Jay Leno at launch.
In an e-mail release, NBC said the first version of NBC Direct will enter beta testing in October under an ad-supported model, and will cater only to Windows PC users. However, subsequent plans call for a DRM-protected model that will also be compatible with Apple's Mac line.
What's more, NewsCorp. will reportedly follow NBC's lead, and launch its own digital download service in addition to its joint Hulu venture with NBC. The service will compete not only against iTunes, but also NBC Direct and Hulu.
"We're sort of staying out of the battle," CBS chief executive Les Moonves told a Merrill Lynch investor conference on Tuesday. "We like our relationship with iTunes."
Moonves went on to say that iTunes is not a significant source of revenue for CBS, but that the network looks at the Apple download service as much as a promotional means for its shows as a financial vehicle.
Following a standoff in negotiations last month, NBC Universal -- which accounted for 30 percent of iTunes TV show sales -- decided not to renew its agreement with Apple after the iTunes operator declined to allow the TV studio more leeway over the pricing of its content sold through the service.
Although Apple claimed NBC's ultimate goal was to drive the cost of its shows from $1.99 to $4.99 a piece, NBC later disputed the claim, explaining that its intention was to institute "flexibility in wholesale pricing" and bundle shows together in more "attractive" ways.
Said NBC vice president of communications, Cory Shields, "It is clear that Apple?s retail pricing strategy for its iTunes service is designed to drive sales of Apple devices at the expense of those who create the content that make these devices worth buying."
Fox Television content supplier NewsCorp., which had appeared as if it was taking a neutral stance in the matter, later echoed NBC's call for a more flexible iTunes pricing structure, arguing that it should be the ones determining what the fair price for its content is, not Apple.
"We have a pretty limited relationship with Apple and we'll see how it goes," said NewsCorp. chief operating officer and president Peter Chernin. "I assume it will be prickly and dicey and contentious like all negotiations are and like all negotiations should be."
NBC and NewsCorp have stated that they plan to band together to form a new, ad-support online video venture called Hulu later this fall. Though CBS had been invited to join the upstart as a third partner, it declined the offer.
But in an unexpected move on Wednesday that has left more than a few industry watchers scratching their heads, NBC announced plans to also launch its own "NBC Direct" service through NBC.com. The on-demand service (also due this fall) will reportedly offer Heroes, The Office, Life, Bionic Woman, 30 Rock, Friday Night Lights, Late Night with Conan O?Brien, and The Tonight Show with Jay Leno at launch.
In an e-mail release, NBC said the first version of NBC Direct will enter beta testing in October under an ad-supported model, and will cater only to Windows PC users. However, subsequent plans call for a DRM-protected model that will also be compatible with Apple's Mac line.
What's more, NewsCorp. will reportedly follow NBC's lead, and launch its own digital download service in addition to its joint Hulu venture with NBC. The service will compete not only against iTunes, but also NBC Direct and Hulu.
Comments
http://mashable.com/2007/09/05/hulu-lulu/
Prideful 30-year-old execs!
What makes NBC think they can do it?
Prideful 30-year-old execs!
Maybe you should look up their ages before making such a simplistic claim.
NBC Universal -- which accounted for 30 percent of iTunes TV show sales -- decided not to renew its agreement with Apple
NBC Universal on iTunes equals 30 percent of tv show sales
NBC Universal on Amazon.com + Hulu + NBC Direct equals hopefully 30 percent of tv show sales...
Good Luck with that!
All this video stuff serves to do is make Apple look fractured as if they are starting to loose the media market. The reality is that iTunes is great to sort your collection of purchased music (either CD or downloaded) and it is far easier in most parts of the world to use Handbrake rip your purchased DVD, sort them on iTunes, watch most of them on my iTV and 32in LCD, and watch a few on my iPod Tubbi.
I rather get a TV.
NBC not only wants me to pay for the show, but also they want to include ads just like in TV broadcast (TV broadcasted show is free!) and want to limit my watching time to 1 week per downloaded show.
PVR records shows for free, I can burn them to DVD, I can keep them as long as I want, I can watch them when I want, I can skip ads.
Why would I buy from NBC???
Maybe you should look up their ages before making such a simplistic claim.
He doesn't have to because he knows you will
Finally, TV with commercials! I'm so going to use the NBC service. All I've been waiting for is to download commercials on my dime. I mean lets face it commercial free TV is just not the same. Now Broadcasting Commercials, home of the pea-cock.
iTunes is a great way to get music in Australia but video has not even started yet. But listening to all that is going on over your way makes me want to buy DVD's that I can rip to my HDD. Really. The quality is better and although it might cost me a few more bucks it is something that I will never loose. Its not that I think Apple is doing anything wrong but the reality is that until the fracturing slows down and starts to converge again to just a couple of video providers I don't want anything to do with digital downloads. Music is different. Many independent artists are easily got from iTunes here so I buy them. But video can wait another decade when it will be HD download, available on my Mac always, downloaded in 10 sec and for some reason no one has worked out how to rip HD DVD or Blue ray. That is when it will be worth getting.
All this video stuff serves to do is make Apple look fractured as if they are starting to loose the media market. The reality is that iTunes is great to sort your collection of purchased music (either CD or downloaded) and it is far easier in most parts of the world to use Handbrake rip your purchased DVD, sort them on iTunes, watch most of them on my iTV and 32in LCD, and watch a few on my iPod Tubbi.
I kind of agree with current resolutions. I do hope Apple offer higher quality soon for the Apple TV ... then the argument is over. Who would rip a 480p DVD if Apple offered 720p? I have my 20 Mb/s FiOS optical fiber download ability waiting
I was going to say TV companies need to change their ways but Apple too have to come to the party, they too are showing a monolithic approach. Where are the show bundles inspiring me to send my sky decoder back? Where are the rentals? (most movies & shows are entertaining but aren't 'keepers') Where are the promotional video podcasts with snapshot purchasing in AppleTV/iPod/Computer, Where's are the HiDef content?
Of course all of this is redundant as I'm in NZ so we have nothing (hopefully the Aussies will convince Apple to think down-under but they seem to be a nation of Apple-haters). The question should be 'where's the global iTS?' I'd like to think they're testing it out on you guys but Apple need to strike back against errant networks by improving the value of their service (get ABC/Disney to release HiDef - the rest will have to follow) I fear iTS video will be dead before it gets here.
McD
I pay $1.99 per show, which I own, it never expires, I watch it without ads when I want to watch it. ...
NBC not only wants me to pay for the show, but also they want to include ads just like in TV broadcast (TV broadcasted show is free!) and want to limit my watching time to 1 week per downloaded show.
PVR records shows for free, I can burn them to DVD, I can keep them as long as I want, I can watch them when I want, I can skip ads.
Why would I buy from NBC???
A Star Wars paraphrase comes to mind:
"The more you tighten your grip, NBC, the more revenue will slip through your fingers."
I have my 20 Mb/s FiOS optical fiber download ability waiting
20Mbps? That's interesting. Who is your FiOS carrier? 20Mbps isn't an option for me. Where I live (near Washington DC), Verizon's FiOS offerings are 5M, 15M and 30M (for $40, $50 and $180/mo, respectively.)
Next month, when I have time to be home and supervise the installation, I plan on buying the 15M plan. I'm really looking forward to a 10x speedup over my DSL line for the same price.
A Star Wars paraphrase comes to mind:
"The more you tighten your grip, NBC, the more revenue will slip through your fingers."
20Mbps? That's interesting. Who is your FiOS carrier? 20Mbps isn't an option for me. Where I live (near Washington DC), Verizon's FiOS offerings are 5M, 15M and 30M (for $40, $50 and $180/mo, respectively.)
Next month, when I have time to be home and supervise the installation, I plan on buying the 15M plan. I'm really looking forward to a 10x speedup over my DSL line for the same price.
Some parts of the FiOS network have newer gear and because of competition from cable they upped plans by 5Mbps. Some parts of N. VA has 10Mbps and 20Mbps service but I don't know where.
But video can wait another decade when it will be HD download, available on my Mac always, downloaded in 10 sec and for some reason no one has worked out how to rip HD DVD or Blue ray. That is when it will be worth getting.
Aren't there Blu-ray rips of Casino Royale all over the torrent sites? I don't need them streamed or instantly available just delivered to my AppleTV with a little blue dot is fine by me.
All this video stuff serves to do is make Apple look fractured as if they are starting to loose the media market. The reality is that iTunes is great to sort your collection of purchased music (either CD or downloaded) and it is far easier in most parts of the world to use Handbrake rip your purchased DVD, sort them on iTunes, watch most of them on my iTV and 32in LCD, and watch a few on my iPod Tubbi.
The media market is in uncharted waters and the fog banks are rolling in. Apple need to soften up until they have a handle on the video market & the providers need to grow up and realise that 'good' content is highly subjective and if it ain't on the new 'TV' - it ain't on. If they don't get their act together they'll blow it.
McD
Sorry NBC, I think that maybe NBC stands for Nothing But Crap.
I kind of agree with current resolutions. I do hope Apple offer higher quality soon for the Apple TV ... then the argument is over. Who would rip a 480p DVD if Apple offered 720p? I have my 20 Mb/s FiOS optical fiber download ability waiting
Fair point. I can see how 720p is so much better than 568 @ 25 frames per second. Ok it really is better. But my issue is that the H.264 codec is absolutely average in fast moving scenes. As I said, I will be sticking to normal DVD's until either Blue Ray or HD-DVD wins and then I will decide if I prefer legal downloads or Purchased movies on media.
I am sure this argument could keep on going but let me just say that the answer to what is right for what person will probably only be answered once all the options are actually available.