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NBC refutes Apple's price claims, pledges iTunes shows

post #1 of 121
Thread Starter 
NBC Universal has rejected claims by Apple that it wanted to more than double the price of TV shows on iTunes -- and has also contradicted threats that new NBC shows would disappear from the iPod maker's online store.

In a statement to the press, NBC flatly dismissed Apple's contention that the TV studio's ultimate goal had been to charge $4.99 per show, more than twice as much as today's $1.99 rate. The actual goal has been to institute "flexibility in wholesale pricing" and bundle shows together in more "attractive" ways, said NBC's executive vice president of communications, Cory Shields.

The studio also insisted that all of its existing shows would see new episodes available for sale through iTunes in spite of Apple's declaration mid-Friday that it wouldn't carry updated NBC programming for the fall season. The company did not say how it intended to force Apple to agree to the terms, but appeared to use its existing contract as leverage.

"We want consumers to know that all our returning series, including new episodes, will be available on iTunes through the remainder of the contract, which expires in early December," said Shields. "Our content is also available on NBC.com, Amazon.com, and the soon-to-launch hulu.com."

The statement reiterates NBC's cautious approach to renewing its contract with Apple, leaving a window open for the the two firms to resolve their dispute before the end of the contract. But in a counter to Apple's own allegations, NBC argued that its would-be partner was the unreasonable firm in the dispute, attempting to keep prices at its media store fixed in a way that favors sales of iPods and iPhones above the shows themselves.

"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

The confirmation of variable pricing as a sticking point for NBC reveals the seriousness of the issue for its parent company Vivendi. July saw NBC's sister company Universal Music Group drop its long-term contract for iTunes music, choosing instead to offer music "at will" so long as Apple maintained its flat 99-cent song pricing. Warner Music and other larger labels have also made similar arguments, but aren't known to have abandoned their own contracts.
post #2 of 121
"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

Really? Then how do you explain Amazon selling the same content for the SAME price?? These executives take the masses for a bunch of idiots. The reason for all of this is to hike up the prices on iTunes ahead of the October launch of NBC and Fox's Hulu.

This war can be traced back to Universal demanding a cut of all iPods sold. Microsoft gave in and they are pissed that Apple said no way.

The above statement makes it clear that Shields thinks that they diserve all your money. After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!
post #3 of 121
The NBC folks are still stuck in the old ways of old media.

As a minimum they should get their story straight.

I mean it's binary - they either wanted $4.99 or they did not.
post #4 of 121
I think they wanted $4.99 for some and $1.99 for others, so it isn't "binary."

Both NBC and Apple are assuming they know what the consumer wants. Both can be stubborn, but Apple is alot smarter about it and knows that people want to take media on iPods, on TV's and on computers while NBC still thinks media is only about online computer streaming video. It is like the record companies who want digital media to exist in a manner that they can "pull the plug" on when they feel they are losing control.
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post #5 of 121
Quote:
Originally Posted by hubfam View Post

"After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!

Hey, why are you getting down on the people who are making the content? They're not the ones doing this; in fact, a lot of them are on the side of the angels. And most of the gaffers I know in TV and movies don't make 120K. You must know some really veteran gaffers with major seniority and a great exchange rate.
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post #6 of 121
Those unbelievable greedy bastards at NBC! Apple spoon feeds NBC a new revenue source, over and above their usual commercial contracts, and now they want even more.

They are too stupid to realize that they will sell more shows and make more money if they keep the price low.
post #7 of 121
I agree that its not binary, but Apple isn't interested in promoting consumer confusion in its own marketplace. This idea that people need to scout around looking for "deals" is stupid. Apple decided that songs on iTunes was 99 cents here in the U.S. that's the price of a song, and I'm sure they've defined a song further by its length. I've been looking at Amazon too. If NBC's proposals are so consumer-friendly, they should start forcing Amazon to take on these new "ideas" for "bundles" and "flexible pricing". In some ways they have.

I've seen some things on Amazon cheaper than on iTunes, but other things MORE expensive. That indecisiveness was enough to make me stop looking. Everytime I see a DVD with little extras selling at Best Buy for $19.99 or $24.99 I scowl and keep moving. I keep thinking "Are you people HIGH?" Then I see the standard prices in supermarkets starting to excite people with a $9.99 and 2 for $15 bin.

Honestly, I'd by more movies if they all just cost $9.99. Really... I'd just BUY and BUY and BUY and BUY. As it is, I skulk around looking for this kind of pricing. If certain tv shows on iTunes started becoming $4.99, I'd probably browse less. I'd even want a feature that ONLY shows me $1.99 or less tv shows, because seeing anything higher would simply be annoying to even see.

If NBC is ending its deal with Apple... they should insert half-seasons into iTunes. It ruins the "season-pass" feature, and forces Apple to simply shut it off for NBC shows. If I used that feature, it'd be irritating to think I'm paying more per episodes knowing that I won't be able to finish the series.

Unless NBC changes their mind and re-signs, I really hope the new seasons of these shows don't appear. NBC's mad because they don't have their new venue in place yet, and it will be a clear "hiccup" where people will simply be unsatisfied. On the otherhand, if Apple waits until December, the decisions will all be made, and Apple will be holding the bag with irate customers caught in mid-season. It would be stupid.

~ CB
post #8 of 121
Bundling?

Is that similar to albums where only one or two songs in a $15 CD are any good.
post #9 of 121
I guess the question is: Who is lying, Apple or NBC?

My guess is NBC.
post #10 of 121
Such snakes.

"NBC flatly dismissed Apple's contention that the TV studio's ultimate goal had been to charge $4.99 per show."--No, their intention was to incredibly raise their wholesale pricing without taking responsibility for the consequences. Talk about spin.

"...bundle shows together in more "attractive" ways"--What's more attractive than buying exactly what you want for an attractive price? Maybe... buy Heroes, get a free Taurus?

NBC could have used this opportunity to save face, but instead calls Apple the meanie, reiterates that their shows are only committed until December, and plugs their hulu venture and other retailers.

This reminds me of when people apologize for something and say, "I'm so sorry that YOU felt hurt."

Twisted.
post #11 of 121
Quote:
Originally Posted by AppleInsider View Post

The confirmation of variable pricing as a sticking point for NBC reveals the seriousness of the issue for its parent company Vivendi. July saw NBC's sister company Universal Music Group drop its long-term contract for iTunes music, choosing instead to offer music "at will" so long as Apple maintained its flat 99-cent song pricing. Warner Music and other larger labels have also made similar arguments, but aren't known to have abandoned their own contracts.

Yikes, there some embarrassingly SERIOUS factual errors in this report.

NBC-Universal is owned by GE. (Vivendi sold the Universal film/tv division to GE a few years ago, for $14 billion.)

Universal Music, on the other hand (as I recall; I have not looked this up prior to writing, but I am nearly 100% sure) is still owned by Vivendi.

I don't think that the "Universal" that belongs to NBC (film/video) has anything to do with the "Universal" that belongs to Vivendi (music) -- they are not "sister companies."
post #12 of 121
Game. set. Match.

NBC will have to promise that the whole new season will be available before Apple takes them back. i.e. 1.99 is here to stay. bitches.
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post #13 of 121
are there any nbc and universal "fan" sites giving the "other side" opinions? Hehe probably a stupid question but it would be interesting to see what they are saying about how this is "all apples fault ... "
post #14 of 121
Quote:
Originally Posted by AppleInsider View Post

..... NBC argued that its would-be partner was the unreasonable firm in the dispute, attempting to keep prices at its media store fixed in a way that favors sales of iPods and iPhones above the shows themselves.



What a bunch of morons...... Apple is in the business of selling what?!

Oops..... answered below, by Mr. Shields:

Quote:
Originally Posted by AppleInsider View Post

"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields [of NBC] asserted......
post #15 of 121
Quote:
Originally Posted by AppleInsider View Post

......said Shields. "Our content is also available on NBC.com, Amazon.com, and the soon-to-launch hulu.com."......

I don't know about amazon.com (too messy a site, and I do not go to it anymore), but I randomly checked nbc.com and hulu.com.

On nbc.com, when I clicked on the video for "Heroes" it tells me that the video for season one is "no longer available." (Where do you think it might be available? ).

As to hulu.com, right now, it seems to be vaporware. Check out for yourself whether you can download a darn thing yet!

These guys are a joke.
post #16 of 121
Hmm, Apple wants to sell their own devices. NBC have just realised this? One thing they haven't realised: people don't buy iPods to watch NBC shows; they buy iPods, and if they can watch NBC shows as well so much the better. Witness iPod sales in Europe, where there has been no video to buy. For them to claim that they provide the reason to buy an iPod is self-delusional; explains a lot!
post #17 of 121
Quote:
Originally Posted by anantksundaram View Post

Yikes, there some embarrassingly SERIOUS factual errors in this report.

NBC-Universal is owned by GE. (Vivendi sold the Universal film/tv division to GE a few years ago, for $14 billion.)

Universal Music, on the other hand (as I recall; I have not looked this up prior to writing, but I am nearly 100% sure) is still owned by Vivendi.

I don't think that the "Universal" that belongs to NBC (film/video) has anything to do with the "Universal" that belongs to Vivendi (music) -- they are not "sister companies."

Actually, that's not really true!

According to Wikipedia (which should be accurate, in this case):

"NBC Universal is a media and entertainment company formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment, part of the French Media Group, Vivendi SA. GE owns 80% of NBC Universal with the remaining 20% owned by Vivendi SA."

So they're sister companies in that Vivendi owns a significant stake in both, even if one isn't a majority stake.
post #18 of 121
What really happened: NBC wanted to raise prices, Apple did not. Apple 'leaks' the news that nbc is threatening dropping their content from the iTMS for the above reason. NBC craps their pants and the next day releases to the press that this is not the case and they will still offer it at the same price. Their stock-holders are happy as there was little damage done since the markets were closed. Everyone else says 'eh'.
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post #19 of 121
Quote:
Originally Posted by hubfam View Post

The above statement makes it clear that Shields thinks that they diserve all your money. After all you should be paying more because he runs a company that pays Actors, Directors, and Producers outragous sums of money. Not to mention the Gaffer making $120,000. a year to set the lights on the set!

First you obvsiouly don't know how much a gaffer makes. Seasoned gaffers in Los Angeles can make 70-80K a year. That's not a lot in Los Angeles.
Second, you don't know what a gaffer does. Gaffers do not set the lights on the set. They accurately determine, based on the type of camera, the camera angle, position of the actors, materials used in the set construction, desired lighting effect, and a lot of other factors, the luminosity, angle other information about the lighting. Saying that a gaffer "Sets the lights on the set" is like saying Steve Jobs "tells people what to do". Listen to the commentary on DVDs of a show like West Wing and you'll hear the director rave about theLD (who is a gaffer) at least once.
Third, an Apple fan accusing Hollywood of having inflated salaries is like the teapot calling the kettle black. As a person who works in the technology business in California and knows many Apple employees, you should find out what Apple pays even its entry level engineers. Hint: $120,000 isn't too far off for those guys.
And all you Apple fanboys (on this site and others) who say they will "get their NBC content one way or the other (hint hint, wink wink)" should think about the NBC person who says "I will get Leopard one way or the other" too. Pirating Leopard is just as easy, and just as wrong.
post #20 of 121
I call BS on NBC. They had no chance of reselling their content reasonably and successfully before iTunes. For them to turn this into some kind of "scheme" by Apple to sell more iPods is simply a diversion.

They've been paying too much attention to GOP political strategists over the years.
post #21 of 121
I've read about this on several different sites and after having done so, I believe that it was NBC trying to force Apple to raise rates. Apple refused and decided to drop the publicity bomb on NBC. Apple knew people would be furious at the proposed rate hike from NBC and would voice their opinions loudly. NBC back peddled and tried to save face by using obtuse words like "Attractive" in their statement - being sure never to clarify if their proposal was in fact attractive to the consumer, or attractive to NBC! They could lie to the people and make it sound like Apple got everything wrong.

I think Cory Shields lied and I'd enjoy seeing Apple lay down the proof of his lie for everyone to see. We all know that studios would love to raise their prices for their shows and if Apple said that NBC wanted to raise the rates to $4.99 an episode, I'm betting that's actually what they wanted. I know it would disappoint some on this site if Apple did freeze all of the NBC shows in December when the contract ends, but then we'd get to watch NBC realize just how big a mistake they made. NBC must first and foremost please its customers. Those same customers have iPods. NBC will learn - even if it's the hard way.
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post #22 of 121
A couple of take aways ...

No way could NBC imagine people ponying up $4.99 for an episode ... but I figure that they did want more for wahtever they considered their premium or hot programs and were trying to persuade Apple to support the cost increase with advertising sales of some sort ... Apple refused to go along, and without the ad revenue the cost would effectively be the $4.99.

I also think that NBC is now (whether from the get-go or a lemon fix) using the flap to publicize it's upcoming portal with News Corp which will most likely flop - because it will be stuffed to the gills with the above mentioned ads ...
post #23 of 121
The only show on NBC I watched last season was Heroes, and after the craptastic season finale I'm not even particularly looking forward to season two. If it's available via iTunes I'll give it another chance. If not *shrug* oh well.
post #24 of 121
Quote:
Originally Posted by battiato1981 View Post

A couple of take aways ...

No way could NBC imagine people ponying up $4.99 for an episode ...

I would pay $4.99 and perhaps $9.99 for new direct to iTunes FireFly episodes...but that's a different kettle of fish than what NBC is doing. And it is questionable how many folks are like me that would spring $5-10 bucks for a 40 min episode.

Not that I was as impressed with B5:The Lost Tales (direct to DVD) but it's understandable given how the cast has long scattered (or is no longer with us), the sets gone and the limited budget.
post #25 of 121
Quote:
Originally Posted by waytogobuddy View Post

Game. set. Match.

NBC will have to promise that the whole new season will be available before Apple takes them back. i.e. 1.99 is here to stay. bitches.

DRM'd low res content for the win suckers! Now who's the bitches?
post #26 of 121
"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

What???? The current pricing is too expensive for something that does not exist (not physical or material).

The price of any full CD, DVD or Blu-ray downloaded should be $1. Then piracy will be over overnignt and they will boost sales thousands of times all over the world with huge profits.
post #27 of 121
The media giant(s) are speaking with a split tongue though if they claim that Apple is more interested in selling their high margin iPods and making less margin on content. They claim equally that they are up in arms as Apple does not grant them their "tenth" on the hardware.

Funny enough : Over here in Europe this is precisely what is happening. In France each iPOd sold results in a copyright levy of 8 ($9.38) in Germany it is 2.74. The list goes on. These levys are then collected by the agencies in charge of author rights (SACEM, GEMA, BUMA/STERMA etc.) and passed onto the IP owners. Which would be (for instance) Universal or NBC Universal

Another aspect where they speak with a split tongue is on recordable CD/DVD where once again a similar levy is charged PER CD and passed onto the IP owners via the schema above. In France it's 0.30 per CD and 1.5) per DVD.

In Germany there is a levy as well on the burners : 6.42 CD and 7.89 for a DVD burner.

So in all: fairness IP giants you already participate greatly in the commercial success of the hardware sales ! At least have the guts to be honest and open abouuut it !
post #28 of 121
First of all, some clarifications.

NBC said they did not suggest that the per episode price should go up to $4.99. This is true. This is the retail price, and Apple sets the retail price.

But what they're not being honest about is that they did, as apple claims, double the wholesale price. Apple's forecast based on the new wholesale pricing was what dictated that episodes be sold at $4.99 to maintain profit levels.

NBC also said that they episodes will continue to be sold until the current contract expires in December. This they cannot possibly know, as I'm sure in Apple's contract with them Apple has no obligation to sell the episodes at all. And it was Apple's decision, not NBC's, that if the contract wasn't renewed or some other guarantee signed, they would not sell any episodes, only to have the seasons cut off in the middle. This should be Apple's right.

If NBC wants to sell the episodes until December, they have to extend the contract for those episodes until the end of the season, at the current prices. They simply have no upper hand in this matter.
post #29 of 121
Does the author know what the word 'refute' means? Enough with the endless AppleInsider thesaurus searching!
post #30 of 121
Quote:
Originally Posted by rmcgann220 View Post

First you obvsiouly don't know how much a gaffer makes. Seasoned gaffers in Los Angeles can make 70-80K a year. That's not a lot in Los Angeles.
Second, you don't know what a gaffer does. Gaffers do not set the lights on the set. They accurately determine, based on the type of camera, the camera angle, position of the actors, materials used in the set construction, desired lighting effect, and a lot of other factors, the luminosity, angle other information about the lighting. Saying that a gaffer "Sets the lights on the set" is like saying Steve Jobs "tells people what to do". Listen to the commentary on DVDs of a show like West Wing and you'll hear the director rave about theLD (who is a gaffer) at least once.
Third, an Apple fan accusing Hollywood of having inflated salaries is like the teapot calling the kettle black. As a person who works in the technology business in California and knows many Apple employees, you should find out what Apple pays even its entry level engineers. Hint: $120,000 isn't too far off for those guys.
And all you Apple fanboys (on this site and others) who say they will "get their NBC content one way or the other (hint hint, wink wink)" should think about the NBC person who says "I will get Leopard one way or the other" too. Pirating Leopard is just as easy, and just as wrong.

I don't think we need to get too caught up in this. I don't think the original gaffer comment was from somebody well-informed or rational... Content developers and specialists (DP, lighting, editors, etc.) and Technologists (Apple engineers, GUI designers, etc, etc...) We're all in the same boat here... Apple + Creative Creation = Good (for the most part).

Let's remember it is the (cliched, but true) "suits" that have no concept of art, doing something right, creativity or hard work, that are screwing everything up.

While the plot and characters of Heroes don't exactly draw me in, I appreciate the high production value. A lot of effort from those "in the shadows" that make those "in the light" look good. They should get their deserved royalties (if that is the scheme) ... It's a pity less royalties for the hard working person on the show because of BitTorrent pirating.

And Hulu.com already has a major disadvantage out the gates at this stage - it is not ready and not available as this major NBC content fiasco is happening. Just as the new TV season is upon us, YouTube and BitTorrent rake up new highs. For shame, NBC executives, bad time to play the "fuck you Apple" card.
post #31 of 121
Quote:
Originally Posted by Commodus View Post

Actually, that's not really true!

According to Wikipedia (which should be accurate, in this case):

"NBC Universal is a media and entertainment company formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment, part of the French Media Group, Vivendi SA. GE owns 80% of NBC Universal with the remaining 20% owned by Vivendi SA."

So they're sister companies in that Vivendi owns a significant stake in both, even if one isn't a majority stake.

You are certainly entitled to your opinion. That is not the way most of the world would define "sister company."

Also, AI's report refers to Vivendi as NBC's "parent company" which is flatly incorrect. GE is the parent company. Period. (Check the annual reports of GE and Vivendi).
post #32 of 121
Quote:
Originally Posted by NBC

...bundle shows together in more "attractive" ways...

Yeah, right. We all know what that will be. Some marketing people deciding what should be sold together. I think I'll pass, thank you.
post #33 of 121
Quote:
Originally Posted by tonton View Post

First of all, some clarifications.

NBC said they did not suggest that the per episode price should go up to $4.99. This is true. This is the retail price, and Apple sets the retail price.

But what they're not being honest about is that they did, as apple claims, double the wholesale price. Apple's forecast based on the new wholesale pricing was what dictated that episodes be sold at $4.99 to maintain profit levels.

NBC also said that they episodes will continue to be sold until the current contract expires in December. This they cannot possibly know, as I'm sure in Apple's contract with them Apple has no obligation to sell the episodes at all. And it was Apple's decision, not NBC's, that if the contract wasn't renewed or some other guarantee signed, they would not sell any episodes, only to have the seasons cut off in the middle. This should be Apple's right.

If NBC wants to sell the episodes until December, they have to extend the contract for those episodes until the end of the season, at the current prices. They simply have no upper hand in this matter.

Apple may not have the "right" to stop selling the shows based on the contract but it really doesn't matter. All that matters is if Apple can delay a court case long enough to run out the contract before a judge rules in favor of NBC. That should not be too hard to do, heck even a 4-8 week delay in releasing the shows would be devastating to the sales, especially given that the consumers know that they are not guaranteed that they will be able to get the whole season.

On a side note, I think that a better deal for Apple and NBC would be to delay the "sale" of the season but in it's place add commercial "streaming" of the shows directly to AppleTV. This would increase NBC's ad revenue and make AppleTV more attractive to consumers, as long as the advertising is not too intrusive.
post #34 of 121
I'm truly, truly amazed that they think we're so DIM that we can't read between the lines. Both Apple AND NBC have some reading between the lines going on. I just happened to think that NBC's "read betweens" are MUCH MUCH worst.

Quote:
For NBC:
We wanted to charge more, though only to the wholesale price. True, it is more than double the wholesale price, but Apple did not have to make the final price "double". Also, we wanted to bundle episodes together, and this would make the price in certain cases perhaps lower than $1.99 on select shows. This creates "attractive" choices for consumers and allows us more pricing flexibility. --Yes, if you don't buy a bundle, Apple's retail price would probably be as they said, but Apple could also forgo some of its profit and make it less. Maybe even as low as $4.00! Moreover, yes... we're jealous of Apple's profitability, in the face of our own challenges in revenue. We believe piracy is effecting our sales, and while iPod owners have little to do with it, we think that some symbolic gesture by Apple would be useful. While most video content on iPods is more than likely legit, and its the music that is more questionable, we feel Apple needs to perhaps compensate us for this vague fear we have. We're making efforts to make the ripping of a DVD to a computer more illegal than its been up to now. While we can't really stop people running "TiVo's" on their computers, and this right has already been secured,

Quote:
For Apple:
We have a standard pricing structure. While NBC did not explicitly say, "we want you to charge double", that's basically what would have to happen for us to maintain the integrity of how we believe our store works best for buyers. We've made allowances for movies to be anywhere from $9.99 to $14.99, based on the category of the film and its release time. That's what we started with. TV Shows started at $1.99 because that's what we saw "working" for that category. Nothing is changing about the content, so raising prices now and requiring "bundle" deals to get reasonable prices on certain shows would sour our customers on a very sensitive part of what makes our store work. Let's be clear, we would have to charge $4.99 on each show to make maintain our margins. We could afford to charge less, but our profitability would be in question. depending on some products to carry the "weight" of others. We know the TV industry is being told that downloadable content is NOT the way forward. They prefer more control as "streaming" ad-based content. We will not swallow any poison pills and do ourselves in by confusing our marketplace. We KNEW what would work going in, and have proven success. NBC's expensive requirements for single episodes were NOT the way forward.

Honeslty, NBC should just take the plunge and simply divide hour-long episodes into 2 parts at $1.99 each if they can. Let people get pissed at them that way.

~ CB
post #35 of 121
In addition to various other points made by others such as:
  • the price on iTunes is comparable with, for example, Amazon, and
  • the highly saleable nature of iPods (e.g. in Europe) without TV shows on iTunes
it is surely highly in NBCs interest that Apple should sell iPods as this will expand the market for sales on iTunes of NBCs shows; a virtuous cycle! To make out that it is purely in Apple's interests is another mistake of NBCs along with attempts at outrageous price hikes!
post #36 of 121
Quote:
Originally Posted by zunx View Post

"It is clear that Apples retail pricing strategy for its iTunes service is designed to drive sales of Apple devices," Shields asserted," at the expense of those who create the content that make these devices worth buying."

What???? The current pricing is too expensive for something that does not exist (not physical or material).

The price of any full CD, DVD or Blu-ray downloaded should be $1. Then piracy will be over overnignt and they will boost sales thousands of times all over the world with huge profits.

That'd be nice, but if you think about it, it's a little much to ask. All of these things have vastly different file sizes, so they require different amounts of bandwidth in order to be transmitted; it costs different amounts of money, therefore, to get them to consumers when downloaded over the internet. If anything, there should be a standard, per-gigabyte price of transmission (25c per gig sounds about right to me).
post #37 of 121
Quote:
Originally Posted by zunx View Post

The price of any full CD, DVD or Blu-ray downloaded should be $1. Then piracy will be over overnignt and they will boost sales thousands of times all over the world with huge profits.

So, are you saying you'd take a cut in salary for the work you do? Say, 1/10th of what you're getting? I agree that the talent has no control over the final pricing most of the time (and almost never get the lion's share of the money), but they still have to get paid.

Why is it that intellectual property is somehow deemed free? Don't the musicians, film makers, etc. need to get paid? It's like saying we should sell cars for $100 dollars. Really, it'll be the factory workers who take the cut, not the company heads. $1 for CD's, DVD's, etc.? How do you pay the people who make them?
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post #38 of 121
Quote:
Originally Posted by tonton View Post

NBC also said that they episodes will continue to be sold until the current contract expires in December. This they cannot possibly know, as I'm sure in Apple's contract with them Apple has no obligation to sell the episodes at all. And it was Apple's decision, not NBC's, that if the contract wasn't renewed or some other guarantee signed, they would not sell any episodes, only to have the seasons cut off in the middle. This should be Apple's right.

If NBC wants to sell the episodes until December, they have to extend the contract for those episodes until the end of the season, at the current prices. They simply have no upper hand in this matter.

Maybe they can go the equivalent of "month to month". I doubt Apple would pull the episodes as long as NBC is willing to let the arrangement continue. I think the Universal music deal is like that, there is no contract but it's still being sold.
post #39 of 121
Quote:
Originally Posted by mzaslove View Post

So, are you saying you'd take a cut in salary for the work you do? Say, 1/10th of what you're getting? I agree that the talent has no control over the final pricing most of the time (and almost never get the lion's share of the money), but they still have to get paid.

Why is it that intellectual property is somehow deemed free? Don't the musicians, film makers, etc. need to get paid? It's like saying we should sell cars for $100 dollars. Really, it'll be the factory workers who take the cut, not the company heads. $1 for CD's, DVD's, etc.? How do you pay the people who make them?

You're absolutely correct... artists certainly do deserve to get paid. The problem is that the big media companies actually make much more than the artist in the majority of cases, and most artists make far more money from concert tickets than from royalties from CD sales... same thing with the movie market, ticket sales make more money than the home movie market. Anyway, a lower price would probably not impact the artist a lot, just the media company which is really just a big, greedy middleman.

When you're talking about "the people who make them", i.e. the factory workers, do not forget that with the advent of digital distribution, they are unnecessary. You can transmit media over the internet without the need for physical media so, while companies could still manufacture CD's, Blu-ray and DVD's, and people would probably still buy them, they could conceivably offer all-digital, non-physical products at far lower prices because nothing really needs to be manufactured anymore.
post #40 of 121
Quote:
Originally Posted by Cleverboy View Post

I agree that its not binary, but Apple isn't interested in promoting consumer confusion in its own marketplace. This idea that people need to scout around looking for "deals" is stupid. Apple decided that songs on iTunes was 99 cents here in the U.S. that's the price of a song, and I'm sure they've defined a song further by its length. I've been looking at Amazon too. If NBC's proposals are so consumer-friendly, they should start forcing Amazon to take on these new "ideas" for "bundles" and "flexible pricing". In some ways they have.

In a way, the iTunes pricing sets the tone for the industry. If another shop has it at a higher price, then they need to offer something to make it worth the extra. As it is, they need to offer more at the same price in order to get people to give them a second look.
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