or Connect
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › NBC strongly opposed to Apple's 99 cent iTunes rental model
New Posts  All Forums:Forum Nav:

NBC strongly opposed to Apple's 99 cent iTunes rental model

post #1 of 88
Thread Starter 
NBC Universal is unlikely join a pair of its peers in serving up a la carte TV show rentals to Apple TV users for 99 cents for pop through Apple's iTunes Store later this year, according to comments from the company's top executive.

"We do not think 99 cents is the right price point for our content," NBC Universal Chief Executive Jeff Zucker said on Wednesday at Goldman Sachs investor conference. "We thought it would devalue our content."

NBC currently offers iTunes customers the option of purchasing its shows outright for $1.99. But like the vast majority of networks that also distribute their content through the digital download service for the same price, it has balked at Apple's new 99 cent model announced earlier this month alongside the revamped Apple TV set-top box.

Thus far, only Walt Disney's ABC and News Corp's Fox have agreed to the price cut, though News Corp President Chase Carey similarly told investors at the same conference Wednesday that its participation in the matter is only a "short-term test."

For NBC and Zucker, this isn't the first time they've entered into a stalemate with Apple over digital download pricing on the iTunes Store. After accounting for roughly 40% of video downloads through the service in 2007, the network abruptly pulled its video library from iTunes after Apple wouldn't agree to a reported 100% increase in the wholesale price of each show.

During an October 2007 breakfast hosted by Syracuse’s Newhouse School of Communications, Zucker even went as far as to single out Apple for 'destroying' music pricing and urged his colleagues to take a stand against the company's iTunes Store, alleging that the service was undermining the ability of traditional media companies to set profitable rates for their content online.


NBC eventually caved to the popularity of the iTunes Store, signing back on with the service to sell its standard definition content for $1.99 an episode and HD content for $2.99 an episode less than a year later.
post #2 of 88
Big surprise. NBC and Apple have been at odds for a long time. It will only get worse if the Comcast/NBC merger happens. Really bad for consumers.

Jeff Zucker is a schmuck who should have been axed a long time ago.
post #3 of 88
Hate to say it, but who really cares about NBC.

If they can't understand the limitations of a lot of consumers to add another $100 a month for television shows then there are other channels.

As long as NBC can keep their commercials in the shows to be rented why do they need 99¢ every time we want to watch something via AppleTV?
Ken
Reply
Ken
Reply
post #4 of 88
Quote:
Originally Posted by AppleZilla View Post

It will only get worse if the Comcast/NBC merger happens. Really bad for consumers.

No kidding. This is one I would hope will get vetoed. Being in the position to not only collect from advertising dollars but also charge for delivery really sucks. I am not sure what grounds the FTC can stop it but hopefully someone will keep that zucker out of such a position of power.
post #5 of 88
Why does the last-place network think its programming is worth the most?
post #6 of 88
But I want to know what The Event is.....
post #7 of 88
Quote:
Originally Posted by ghostface147 View Post

But I want to know what The Event is.....

... NBC agreeing to rent their TV shows!!!
post #8 of 88
Lol @ jeff zucker. Maybe when comcast takes control they'll change they're mind
Tech Apocalypse - Battle for the Sky.
Reply
Tech Apocalypse - Battle for the Sky.
Reply
post #9 of 88
I guess NBC wants to price themselves out of the market then. They'll come around once they see the money they are not making.
The key to enjoying these forums: User CP -> Edit Ignore List
Reply
The key to enjoying these forums: User CP -> Edit Ignore List
Reply
post #10 of 88
And the pending Comcast merger has NOTHING whatsoever to do with this stance by NBC. Riiiight.
post #11 of 88
Quote:
Originally Posted by ghostface147 View Post

But I want to know what The Event is.....

***WARNING SPOILER ALERT***
Its CRAP!
post #12 of 88
How is Apple TV different from TiVo? TiVo can record shows automatically and people don't need to rent the shows. I'd rather have a DVR than Apple TV regarding TV shows.

NBC is just missing out on free money. Idiots. I'd consider renting a show for a quarter and that still seems high for something I can record free with a DVR. Advertisements can be fast forwarded and deleted if the show is kept on a computer.
post #13 of 88
It's a rental so I have 48 hours to watch a single episode before it goes bye-bye. I'm not even happy at that price. The Netflix hook-up in AppleTV is its only valued feature at the moment.

So, if a person rents a TV show twice then shouldn't they be happy. Especially in a home where not everyone can watch the same day. One would believe the rental model would be more attractive as it is recurring revenue. I might actually want to watch a show again some time in the future - I know that sounds crazy but it happens.
post #14 of 88
Quote:
Originally Posted by Smallwheels View Post

How is Apple TV different from TiVo? TiVo can record shows automatically and people don't need to rent the shows. I'd rather have a DVR than Apple TV regarding TV shows.

NBC is just missing out on free money. Idiots. I'd consider renting a show for a quarter and that still seems high for something I can record free with a DVR. Advertisements can be fast forwarded and deleted if the show is kept on a computer.

Yes, but you have to pay for all the shows before Tivo can record any shows.
Tivo doesn't record out of thin air(unless you are recording only free over the air tv).
Most people pay a lot of money to a cable company for the privilege of DVRing their favorite shows.

I don't have cable TV and there is no free over the air tv in my area so a DVR is no good for me.
AppleTV sounds great.
post #15 of 88
So this is a comment from the idiot that has been running the network into the ground. He must have been a Record Executive in a past life.
post #16 of 88
$0.99 is too much for the crap being dished out by the networks.

Watched a few minutes of Fox's highly touted Glee last night. Utter, autotuned crap.
post #17 of 88
If they make more than $1/view (or whatever their cut of that dollar is, 60 cents?) when they broadcast, he is right.

I can't imagine they do, but I don't really know. How much does an ad cost on a hit show? How many people are watching it?

If they don't make more than $1/view , then I don't know why they wouldn't take the money.

And I don't agree that Netflix is the only value that AppleTV offers. It is a great feature, don't get me wrong and I don't think I would have ordered one without it. I can't really see myself renting TV shows, but I do think I will end up renting movies.

I subscribe to Netflix, but don't always have a DVD at home when I decide to watch a movie. If it isn't available to stream from Netflix, I could easily see myself renting one from Apple.

We occasionally ran to our local video rental place when we wanted to watch something that had just come out and didn't want to wait for it to ship from Netflix. That was until the last rental place in our town closed. We will do the same thing with AppleTV and won't have to drive twice.

I would love to be able to stream ESPN3 to it. Anybody know if that is going to be possible?
post #18 of 88
Quote:
"We do not think 99 cents is the right price point for our content," NBC Universal Chief Executive Jeff Zucker said on Wednesday at Goldman Sachs investor conference. "We thought it would devalue our content."

Yeah cause it has such quality content as it is Jeff! /sarcasm
post #19 of 88
This is why Jobs considers this a "hobby".

He can't get deals like he did with music. If he did, Steve would probably be more on board with this segment.
post #20 of 88
So, how much does Mr. Zucker think that people will be willing to pay to view their mostly mediocre programs. Personally, I probably wouldn't pay a penny to rent a TV program. I would probably wait for it to be available on Netflix and watch it then for no additional cost. Apparently, free money isn't good enough for NBC.
post #21 of 88
Quote:
Originally Posted by Mac_Keeper_Fan_Mod View Post

This is found money for the networks, and they're saying 'no thanks'. They're hidebound, dull, and plodding - no surprise there...

I had to look up what hidebound means, but yeah - ditto.

A season of shows can be PURCHASED for a comparable rate so what's the problem? Zuck doesn't get it. How does he explain to shareholders that he's leaving this money on the table? Just like he did during his itunes walkout.
Emailing video from iPhone to Apple TV , sort of..
Reply
Emailing video from iPhone to Apple TV , sort of..
Reply
post #22 of 88
They are okay with $1.99 for a TV show sale, but not okay with a 99¢ TV show rental. This isn’t unique to NBC! Doesn’t this say that these networks aren’t really expecting much in the way of repeat viewing?
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #23 of 88
Quote:
Originally Posted by Magic_Al View Post

Why does the last-place network think its programming is worth the most?

Napoleon complex at it's finest...
Apple Fanboy: Anyone who started liking Apple before I did!
Reply
Apple Fanboy: Anyone who started liking Apple before I did!
Reply
post #24 of 88
Quote:
Originally Posted by AppleInsider View Post

NBC eventually caved to the popularity of the iTunes Store, signing back on with the service to sell its standard definition content for $1.99 an episode and HD content for $2.99 an episode less than a year later.

NBC will eventually cave into this as well. It may not happen today, tomorrow, or next month, but they will once you see ABC and FOX make money off A.tv..That's if they make money off A.tv
post #25 of 88
NBC Universal has been making boneheaded decisions for ages now. The worst was probably putting Zucker in charge of programming. I'll never forgive him for destroying Surface by pre-empting it half the time. It wasn't the greatest show, but it had potential and momentum, at least before they screwed it up. Others would say he was an idiot for that whole fiasco with their awful Jay Leno primetime experiment and the way they bungled Conan. And of course, Universal steadfastly backed HD DVD and refused to support Blu-ray. So how did that work out for you guys, Universal?
post #26 of 88
Hulu was founded in March 2007 by NBC Universal and News Corp..........Not really sure how that fails to make it into this story,
post #27 of 88
Quote:
Originally Posted by AppleZilla View Post

Big surprise. NBC and Apple have been at odds for a long time. It will only get worse if the Comcast/NBC merger happens. Really bad for consumers.

Jeff Zucker is a schmuck who should have been axed a long time ago.

Yeah but can you really blame them???
If your not a consumer that buys but watches, you can go to almost any network site and watch the content for free. Thus the lack of flash on the ipad and iPhone. They could make it work if they wanted. Even if it meant plugging in your phone to an outlet, they could make it happen. In fact Tom Tom uses more battery than movies yet you never hear people complain and since the 3GS, the phone has been fast enough. With iPhone; it's a no brained. I hope many dint join and get HTML 5 to work as free is always better.

Blessings.
post #28 of 88
Quote:
Originally Posted by Kolchak View Post

NBC Universal has been making boneheaded decisions for ages now. The worst was probably putting Zucker in charge of programming.........
....Others would say he was an idiot for that whole fiasco with their awful Jay Leno primetime experiment and the way they bungled Conan. And of course, Universal steadfastly backed HD DVD and refused to support Blu-ray. So how did that work out for you guys, Universal?

It's hard to understand how he survived all this. Didn't he retool Today to be more like Regis ? Or was that someone else?
Emailing video from iPhone to Apple TV , sort of..
Reply
Emailing video from iPhone to Apple TV , sort of..
Reply
post #29 of 88
Im confused though, ABC made an app that lets me go and watch all their shows, well at least the ones worth watching. Why would I even want to rent??? Make an app, throw in a few commercials like ABC does and call it a day.
post #30 of 88
None if the networks want to see media fall apart like the music biz. It, for the most par, will always be network controlled.

Quote:
Originally Posted by AppleInsider View Post

."

For NBC and Zucker, this isn't the first time they've entered into a stalemate with Apple over digital download pricing on the iTunes Store. After accounting for roughly 40% of video downloads through the service in 2007, the network abruptly pulled its video library from iTunes after Apple wouldn't agree to a reported 100% increase in the wholesale price of each show.

During an October 2007 breakfast hosted by Syracuses Newhouse School of Communications, Zucker even went as far as to single out Apple for 'destroying' music pricing and urged his colleagues to take a stand against the company's iTunes Store, alleging that the service was undermining the ability of traditional media companies to set profitable rates for their content online.


NBC eventually caved to the popularity of the iTunes Store, signing back on with the service to sell its standard definition content for $1.99 an episode and HD content for $2.99 an episode less than a year later.
post #31 of 88
What's wrong with these guys? Don't they get that the rental cost can be a downpayment?

So you pay 99 cents to rent an episode. You like it. You'd like to see it later, over and over again, but your claim to the show has expired. But no need to sniffle, because NBC will sell it to you, for only an extra buck. And guess what?, if you like the series, NBC will sell you that too, because they're such nice guys, and you can download it, or pay for the bells-and-whistles on a blu-ray and have it shipped to you, and again, the 99 cents is a downpayment. Heck, maybe they'll even throw in a free rental of another show that they're sure you'll like.

Whoever said these guys are schmucks got it absolutely right. There's an opportunity here to get completely out of the thrall of their advertisers, to sell even more of their content, and they don't even see it.
post #32 of 88
Quote:
Originally Posted by Magic_Al View Post

Why does the last-place network think its programming is worth the most?

Did eveyone miss the part about NBC being responsible for 40% on iTunes?
post #33 of 88
Quote:
Originally Posted by Smallwheels View Post

How is Apple TV different from TiVo? TiVo can record shows automatically and people don't need to rent the shows. I'd rather have a DVR than Apple TV regarding TV shows.

NBC is just missing out on free money. Idiots. I'd consider renting a show for a quarter and that still seems high for something I can record free with a DVR. Advertisements can be fast forwarded and deleted if the show is kept on a computer.

Finally. Someone that gets it and it can be HD too plus the future is the net, webisides, etc and FREE lrigrammingv
post #34 of 88
No problem, I guess i will continu to get those nbc shows for free and start paying for abc and disney ones.
There old business model is out with me because i PVR everything then watch and FF the ads.

Nbc will be getting the full BT treatment for shows I cant get on my pvr. I miss chuck this week, too bad for them, its getting Dl right now.
post #35 of 88
Quote:
Originally Posted by solipsism View Post

They are okay with $1.99 for a TV show sale, but not okay with a 99¢ TV show rental. This isnt unique to NBC! Doesnt this say that these networks arent really expecting much in the way of repeat viewing?

Not necessarily. They sell television series DVDs. My guess is that they are concerned that rentals might negatively affect DVD sales.
post #36 of 88
Quote:
Originally Posted by mgl323 View Post

NBC will eventually cave into this as well. It may not happen today, tomorrow, or next month, but they will once you see ABC and FOX make money off A.tv..That's if they make money off A.tv

So how much has ABC made on movie sales off iTunes? Movie rental and sales have been available for Appletv for a while. Seems like if Apple came up with a good number, it would go a long way to convince the other studios to be a part of rentals.
post #37 of 88
Quote:
Originally Posted by Smallwheels View Post

How is Apple TV different from TiVo? TiVo can record shows automatically and people don't need to rent the shows. I'd rather have a DVR than Apple TV regarding TV shows.

Well my answer here is entirely dependent upon your situation. It applies to me, but perhaps not you. Hypothetically speaking, of course, if all of the networks got on board with AppleTV and this price plan, I would cancel my cable subscription straight away. I watch probably less than 20 episodes of television in any given month, so I think that I'd do better with AppleTV. Also, "on demand" movies and other shows cost a buck less through iTunes vs my cable provider.

The only thing that keeps iTunes from ruling my entertainment roost right now is the lack of content. Guess why it lacks the content? I think that that the cable companies and the networks alike are scared to death of this endgame, and some of them are going to do everything in their power to prevent it. Ultimately, they will be unable to. I'm not guaranteeing iTunes domination per se, but digital a la carte delivery is in our future. Forced bundling sucks for the consumer, plain and simple, especially in market where there is only one choice in cable provider (most markets). Sure, I buy the occasional complete music "album" now, if the artist really makes it a work of art. Otherwise, give me a song for a reasonable price, and I'll gladly pay it.

The smarter companies are the ones that figure out how to get in front of the changes and monetize them. The losers will fight the changes until they go broke. (Blockbuster, anyone? Traditional music stores? Bookstores today?)


Thompson
post #38 of 88
Quote:
Originally Posted by Johnny Mozzarella View Post

Yes, but you have to pay for all the shows before Tivo can record any shows.
Tivo doesn't record out of thin air(unless you are recording only free over the air tv).
Most people pay a lot of money to a cable company for the privilege of DVRing their favorite shows.



that is exactly the point though - NBC/CBS/ABC/Fox are all **FREE** to anyone in the US who wants it. the fact that NBC's head is up their butt in terms of monetizing digital rentals is asinine.

79% of the US population lives in an urban area, that means that a relatively cheap antenna (less than one month's worth of cable) can get them about 20-25 channels, just like me. in HD. for no monthly fee.

two months cable subscription can get you an HD recorder for your free television:
http://www.amazon.com/Toshiba-DR570-...p_ob_e_title_0 i started with a similar device in 2006 when Philadelphia stations started to broadcast ATSC, and now i have a full blow computer-based DVR that blows the pants off Tivo, and allows me access to my music and photos and the web as well as ATSC "free" tv. http://www.sagetv.com

all together, i still haven't spent what a year's worth of Comcast would have cost me, and i have added an $8 a month Netflix subscription so i can get the HBO/Showtime series i want to watch as well.




US population in urban area:
http://wwwcf.fhwa.dot.gov/planning/census/cps2k.htm
post #39 of 88
Has anyone else failed upward the way Zucker has?
post #40 of 88
Heroes was the only show worthwhile on NBC for me. Now that it's canceled, NBC, you just don't matter anymore.
If you want to call me names, tell me to shut up and f off...you will be ignored. I WILL NOT BE BULLIED!!
Reply
If you want to call me names, tell me to shut up and f off...you will be ignored. I WILL NOT BE BULLIED!!
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPod + iTunes + AppleTV
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › NBC strongly opposed to Apple's 99 cent iTunes rental model