Apple iTunes Store to stop selling NBC television shows
Apple on Friday afternoon issued a press release confirming that it will indeed halt sales of NBC television shows through its ubiquitous iTunes download service beginning with the upcoming television season.
The move, the company explained, follows NBC?s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99.
ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
?We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,? said Eddy Cue, Apple?s vice president of iTunes. ?We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.?
Apple?s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September.
NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
The move, the company explained, follows NBC?s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99.
ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
?We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,? said Eddy Cue, Apple?s vice president of iTunes. ?We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.?
Apple?s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September.
NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.
Comments
I've run the math, and it seems to me that even at 1.99/show, if I watch 2 shows per day, that comes out to about 60 bucks per month, and zero flexibility.
My cable with HBO is 60/month including DVR.
Someone want to 'splain the brilliant economics of this model to me?
When the first announcement hit, there was a ton of apple bashing for not playing ball, and dire predictions.
Now that it has been revealed that NBC wanted to double prices, they are getting slammed as the greedy corporate bad guy.
Apple's PR department sure knocked this one out of the park.
OK, I need someone to enlighten me as to why I would spend 1.99, let alone 4.99 for an episode of crappy NBC show in the first place.
I've run the math, and it seems to me that even at 1.99/show, if I watch 2 shows per day, that comes out to about 60 bucks per month.
My cable with HBO is 60/month with DVR.
Someone want to 'splain the brilliant economics of this model to me?
The ninja move here is to do the following:
1. Buy an "HD" antenna - which is just a regular UHF antenna
2. Buy a Series 3 HD TIVO ($299 - $399)
3. Buy an Apple TV
4. Drop Cable / Dish and love every minute of it. You'd save $720 a year minus your inital outlay of cash for the hardware and the amount you spend on iTunes.
How can you do this?
Use your TIVO to record Free Network Shows. It also allows you to rent movies via Amazon's movie service. Use iTunes or other services (i.e. Bittorrent) to get the remainder of the content you need.
The only thing you might miss out on is Live Sports programming. . . but isn't that what Bars are for?
Apple just handily bested NBC Universal. Not only does NBC look like complete assholes for wanting three times wholesale, but now NBC's fall season has taken a huge setback. Shows like The Office and Heroes were popularized by (at least in part) by iTunes. Given that NBC is launching significantly more shows than usual this upcoming season, Apple just hit NBC right where it hurts. NBC was hoping they could take advantage of their shows being available on iTunes through December to build audiences for their new programming, but now NBC is left out to dry. NBC's fall programming builds on the success of shows like The Office and Heroes targeting a similar audience. Without iTunes, NBC stands to suffer greatly this fall.
Well played, Apple. Well played.
So I wonder if NBC has someone else willing to pay more, or if they think they can do better selling direct?
The question is whom do they have lined up to pay $4.99 per show? Count me out.
The ninja move here is to do the following:
1. Buy an "HD" antenna - which is just a regular UHF antenna
2. Buy a Series 3 HD TIVO ($299 - $399)
3. Buy an Apple TV
4. Drop Cable / Dish and love every minute of it. You'd save $720 a year minus your inital outlay of cash for the hardware and the amount you spend on iTunes.
How can you do this?
Use your TIVO to record Free Network Shows. It also allows you to rent movies via Amazon's movie service. Use iTunes or other services (i.e. Bittorrent) to get the remainder of the content you need.
The only thing you might miss out on is Live Sports programming. . . but isn't that what Bars are for?
Well, if I were to do that, then I'd hook some sort of EyeTV set up to DVR the OTA to my MAC.
My problem is that don't get any decent OTA where I live.
Now the catch to that is that eventually the networks will get cut out in the same way. Eventually the studios will no longer need the networks and they'll offer their shows to us directly.
If the shows remain $2 on NBC, it wont change a thing for me. Heck, especially if NBC offers an HD download. But I'm with the rest of you. $5 is ridiculous for 20 minutes of video.
OK, I need someone to enlighten me as to why I would spend 1.99, let alone 4.99 for an episode of crappy NBC show in the first place.
I've run the math, and it seems to me that even at 1.99/show, if I watch 2 shows per day, that comes out to about 60 bucks per month, and zero flexibility.
My cable with HBO is 60/month including DVR.
Someone want to 'splain the brilliant economics of this model to me?
The big savings is in the fact that most shows are not on all year round, but you're paying for cable year round. Other benefits include, no commercials, and "owning" the media (ie. if its a show you would have bought on DVD that is no longer necessary, unless you want the bonus features)
So for example:
Lost Season Pass: $34.99
Ugly Betty Season Pass: $34.99
CSI Season Pass: $44.99
CSI: Miami Season Pass: $39.99
House Season Pass: $42.99
24 Season Pass: $44.99
Top Chef Season Pass: 28.99
Daily Show Multi-Pass(= 1 Month) $9.99 * 12 = $119.88
Total: $391.81/year
Now I don't know what your cable bill is, but mine is $70.27 a month, so
$70.27 * 12 = $843.24
Now I don't know what shows you watch, but you can see how this could result in significant savings if you can do without Live TV, and channel surfing.
Echoing a previous comment, brilliant PR move on Apple's part.
2. I actually might smell Hubris (form both parties)
3. nothing cures Hubris like Bittorrent
4. I guess we know Apple's percent cut now..
OK, I need someone to enlighten me as to why I would spend 1.99, let alone 4.99 for an episode of crappy NBC show in the first place.
I've run the math, and it seems to me that even at 1.99/show, if I watch 2 shows per day, that comes out to about 60 bucks per month, and zero flexibility.
My cable with HBO is 60/month including DVR.
Someone want to 'splain the brilliant economics of this model to me?
You are leaving out the fact that there are no ads in the paid download. If that has no value for you, then that's fine, but I think there is some value there, even if it's just not having to skip the ads. Most of the support for most of those channels you get through cable is through the ads, not your subscription fee.
Anyway, I have an EyeTV that can record NBC prime time in HD, so I can get better quality through a device that's already paid for, rather than pay $1.99 or $4.99 an episode. It has ads, but I can deal with that.
OK, I need someone to enlighten me as to why I would spend 1.99, let alone 4.99 for an episode of crappy NBC show in the first place.
I've run the math, and it seems to me that even at 1.99/show, if I watch 2 shows per day, that comes out to about 60 bucks per month, and zero flexibility.
My cable with HBO is 60/month including DVR.
Someone want to 'splain the brilliant economics of this model to me?
I don't buy regularly, but if I missed a Heros episode I would usually buy it to catch up before everyone talking about it at work ruined it.
Furthermore I have been known to buy Galactica episodes (ok the whole season) on impulse. I don't even know if it was more expensive than buying the DVDs but it was available much faster and all on my laptop