NBC refutes Apple's price claims, pledges iTunes shows

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  • Reply 101 of 120
    Quote:
    Originally Posted by bg_nyc View Post


    They plan to leave? When? I didn't read that. I saw this:



    Quote:

    Originally Posted by AppleInsider

    "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."



    Hmmm.. I dont think they're going anywhere any time soon. It looks to me like they tested the waters, Apple held firmly, and now they are retracting.





    Timeline:



    -NBC says Apple won't let them have flexible pricing[1], stronger DRM[2], and more anti-piracy[3] efforts so they're leaving when the contract expires at the end of December. They also say that many other network/cable channels are thinking about not resigning with Apple.



    -Apple says NBC wanted to more than double the wholesale cost, resulting in a new $4.99 price for TV shows, along with bundling[4] crap shows with good shows to force you to buy them. Furthermore Apple will not offer the upcoming season of NBC shows because it's unfair to customers to cut them off halfway through their television series. Apple also reveals that everybody but NBC has already resigned their contract. In short: Sometimes I think God put video content guys on the planet to make the music guys look progressive and visionary.



    -NBC says they never said double (note that Apple said more than double, so NBC is technically correct) the wholesale price. They then say they're forcing Apple to stick with the contract to offer the shows until early December. In short: I am high as a kite.



    -NBC joins Amazon's Unbox with its much more restrictive (Window's only) DRM.





    The two bolded parts cover your response. Apple says we don't want to screw over our customers with half of your TV shows so f**k off, NBC says you MUST screw over your customers with half of our TV shows nah nah nah.



    I'm willing to bet money that Apple wins that little contract dispute.



    It has nothing to do with NBC backing down and resigning their contract, as you said.







    [1] Flexible pricing = $4.99 for new shows, $4.99 for popular old shows, $1.99 for crap.





    [2] See their new deal with Amazon's Unbox. From Ars:



    Apple's terms allow for authorized for playback on as many as five different devices. Furthermore, Apple-approved devices can be authorized to play content purchased from five different accounts.



    Compare Unbox: Shows bought from Unbox can be kept on two computers max, and can be stored on up to two different (approved) media players. Users cannot "mix" accounts, meaning that a PC cannot have authorized content purchased from two different accounts accessible at the same time. As you can see, Unbox is more restrictive.





    [3] See Daring Fireball:



    I’d love to hear more about exactly what NBC wants Apple to do, but the only two things I can think of are (a) disallowing iPods and iPhones from playing anything other than DRM-protected video; and (b) adding spyware features to iTunes to search for and attempt to identify bootleg video files on users’ computers. Needless to say, it’s no wonder Apple told them to go f**k themselves.





    [4] If you want to buy The Office, you also have to buy one of Steve Carell's movies. He makes pretty bad movies, 40 Year Old Virgin aside, but you're screwed because NBC is evil and stupid (an interesting, and daring, combination).
  • Reply 102 of 120
  • Reply 103 of 120
    Anyone notice NBC is offering their shows through Amazon unbox and they did not double the price?. Notice that they even give you a break if you buy a package.. and also if you bought some shows and want the rest, they sell you the rest in a package at a prorated price (ie, the pacckage contains 10 shows, you bought 3, love it and now want to buy the package.. instead of paying full price, you buy package minus the cost of the three shows you already bought).



    Now tell me, what is so unreasonable about that, that apple could not work out a deal?. Apple already does this with music.. you can buy a track or the entire album. Why couldn't they work out this same deal with NBC?.

    I think after regular folks (not apple fans) read the terms of the unbox agreement, they will ask "WTF apple?".



    There has got to be more to this story. Apple looks really bad here. I understand the mac fan base will take apple side.. but to the general public, this looks really bad for apple. Actually, If i love a NBC show, i would want to buy the entire season. I love law and order (i even watch reruns, even though i know how it ends).. i'd buy the entire season"... was apple objecting to this?.



    BTW, price for single show?.. still $1.99!!!!!!



    Yeah apple, not $4.99 but still $1.99!!!!!
  • Reply 104 of 120
    It's odd. Obviously, we're not getting the whole story.
  • Reply 105 of 120
    brussellbrussell Posts: 9,812member
    Quote:
    Originally Posted by wnurse View Post


    Anyone notice NBC is offering their shows through Amazon unbox and they did not double the price?. Notice that they even give you a break if you buy a package.. and also if you bought some shows and want the rest, they sell you the rest in a package at a prorated price (ie, the pacckage contains 10 shows, you bought 3, love it and now want to buy the package.. instead of paying full price, you buy package minus the cost of the three shows you already bought).



    Now tell me, what is so unreasonable about that, that apple could not work out a deal?. Apple already does this with music.. you can buy a track or the entire album. Why couldn't they work out this same deal with NBC?.

    I think after regular folks (not apple fans) read the terms of the unbox agreement, they will ask "WTF apple?".



    There has got to be more to this story. Apple looks really bad here. I understand the mac fan base will take apple side.. but to the general public, this looks really bad for apple. Actually, If i love a NBC show, i would want to buy the entire season. I love law and order (i even watch reruns, even though i know how it ends).. i'd buy the entire season"... was apple objecting to this?.



    BTW, price for single show?.. still $1.99!!!!!!



    Yeah apple, not $4.99 but still $1.99!!!!!



    Apple already does sell seasons for a discount, including NBC shows. I don't know if this makes Apple look bad to the general public, maybe it does, but there's no doubt that NBC doesn't like Apple's power in online sales. That's what this is about, not pricing, not bundling, not piracy. Remember that Universal/Vivendi is the NBC music company that also has made signs of backing out of iTunes. Some powerful person at that company has got a bug in his butt about Apple, and this is the result.
  • Reply 106 of 120
    jeffdmjeffdm Posts: 12,951member
    They did get their more restrictive DRM system, though by many accounts, is easier to crack than iTunes' DRM. Two computers and two devices is the limit.
  • Reply 107 of 120
    wnursewnurse Posts: 427member
    Quote:
    Originally Posted by BRussell View Post


    Apple already does sell seasons for a discount, including NBC shows. I don't know if this makes Apple look bad to the general public, maybe it does, but there's no doubt that NBC doesn't like Apple's power in online sales. That's what this is about, not pricing, not bundling, not piracy. Remember that Universal/Vivendi is the NBC music company that also has made signs of backing out of iTunes. Some powerful person at that company has got a bug in his butt about Apple, and this is the result.



    Wasn't this my point all along?. That apple was being disingenious when they claimed NBC wanted to double the price?. I think NBC wanted more control over their assets and how it is sold. I'm sure if tomorrow NBC called amazon and said "we want X and Y" amazon would say ok while apple would tell them to go fly a kite. This is what this is all about. That's what i have been saying. NBC wants to control how their videos are sold and for how much.



    I know this may come as a shock to everyone everywhere (not just apple fans) but video download via itunes is not that big a business.. NBC risk is very little here. This was a good time for them to attempt to control the process. They missed the boat with music. Itunes is the dominant platform for digital music downloads so their negotiating power is very limited but itunes does not dominate video downloads. It's an extremely small market.
  • Reply 108 of 120
    Quote:
    Originally Posted by wnurse View Post


    Wasn't this my point all along?. That apple was being disingenious when they claimed NBC wanted to double the price?. I think NBC wanted more control over their assets and how it is sold. I'm sure if tomorrow NBC called amazon and said "we want X and Y" amazon would say ok while apple would tell them to go fly a kite. This is what this is all about. That's what i have been saying. NBC wants to control how their videos are sold and for how much.



    I know this may come as a shock to everyone everywhere (not just apple fans) but video download via itunes is not that big a business.. NBC risk is very little here. This was a good time for them to attempt to control the process. They missed the boat with music. Itunes is the dominant platform for digital music downloads so their negotiating power is very limited but itunes does not dominate video downloads. It's an extremely small market.



    I agree. Once I get my mind that around that it's not about price, but about control, this makes sense. Curious to see of NBC-U eventually does increase the prices of hit shows or attempts to bundle a TV show with a movie.



    My guess is not until Unbox and Hulu sales approach iTunes--if that happens.
  • Reply 109 of 120
    brussellbrussell Posts: 9,812member
    Quote:
    Originally Posted by wnurse View Post


    Wasn't this my point all along?. That apple was being disingenious when they claimed NBC wanted to double the price?. I think NBC wanted more control over their assets and how it is sold. I'm sure if tomorrow NBC called amazon and said "we want X and Y" amazon would say ok while apple would tell them to go fly a kite. This is what this is all about. That's what i have been saying. NBC wants to control how their videos are sold and for how much.



    I know this may come as a shock to everyone everywhere (not just apple fans) but video download via itunes is not that big a business.. NBC risk is very little here. This was a good time for them to attempt to control the process. They missed the boat with music. Itunes is the dominant platform for digital music downloads so their negotiating power is very limited but itunes does not dominate video downloads. It's an extremely small market.



    Well honestly I'm not sure what your point was. You said something about how NBC is offering seasons on Amazon, and why couldn't Apple offer seasons.



    But where I think I disagree with you is this: If you're interested as a consumer in getting the best deals on video downloads, I'm quite sure you'll be better off if Apple wins than if NBC wins. That's not because Apple is altruistic and NBC is evil, it's just because Apple wants the best deals for downloads because they make their money from ipods.
  • Reply 110 of 120
    Quote:
    Originally Posted by BRussell View Post


    Well honestly I'm not sure what your point was. You said something about how NBC is offering seasons on Amazon, and why couldn't Apple offer seasons.



    But where I think I disagree with you is this: If you're interested as a consumer in getting the best deals on video downloads, I'm quite sure you'll be better off if Apple wins than if NBC wins. That's not because Apple is altruistic and NBC is evil, it's just because Apple wants the best deals for downloads because they make their money from ipods.



    Well maybe yes, maybe no. Seems to me that unbox is offering the better deals right now.

    Apple is all $1.99. Unbox, it depends.. maybe NBC will lower the price on old episodes.

    They could also raise the price on new episodes but that is not the point. If apple offered bmw a deal where they sell all BMW's for 30,000, that would be extremely consumer friendly, not?.



    No one will be forced to buy NBC episodes online. You think the price is too high, don't buy it.

    The same is with apple itunes so i have no idea what apple problem is. If they thought NBC wanted to charge 4.99 per episode, ok, let them. Everyone else video is $1.99, NBC is $4.99. If apple really believes that they have the power, consumers would vote with the wallet.

    As someone said, ipods sell well in places where itunes does not offer video downloads... so why would apple insist on controlling the pricing.. what do they care?. Ipods will sell right?. NBC wants to sell for 4.99, they will soon discover if they have customers left after that.



    What this boils down to is apple does wants to retain control over pricing. NBC doesn't necessairly wants to raise prices, they just want to be the one who says it's $1.99 (it may seem the same to you but apple way means that in the future, for a network to raise price, they would have to negotiate with apple, while NBC way means NBC can raise the price when they feel like it.. they don't have to ask apple permission). They may still want to do $1.99 but they want to be the ones who say $1.99. Also there is one clear instance where the consumer does not get the best deal with apple and that is with old episodes. NBC could say hey, we'll discount that old episode to $1.59 while apple sticks to $1.99. How am i better served by apple in that situation?. Also, NBC might throw in a few episodes free if i buy the entire season.. with apple, nope. Season package is this price.. take it or leave it I'm not talking about discounting the package.. i am talking about offering a few free episodes of show X if you buy the entire package of show Y.. for example.. Buy entire package of "Law and Order", get the first 10 episodes of "Law and Order, Special Victim Unit" for free.. something like that. To NBC thinking, why should they have to check with Apple everytime they want to do a special promotion?.
  • Reply 111 of 120
    brussellbrussell Posts: 9,812member
    I don't believe NBC wanted Apple to lower their prices. Apple currently does sell seasons at a discount. They also offer free content - things like season premiers and "catch-up" episodes. I'm sure NBC could make that available like everyone else if they wanted.



    Personally, I wouldn't care if iTunes had variable pricing. But let's be realistic - NBC wanted to raise prices and/or require you to purchase something you didn't want along with what you did want, and Apple didn't want that to happen. I just don't believe that NBC was on the side of the consumer in these negotiations. It just doesn't make sense, the incentives are the other way around.
  • Reply 112 of 120
    Quote:
    Originally Posted by BRussell View Post


    I don't believe NBC wanted Apple to lower their prices. Apple currently does sell seasons at a discount. They also offer free content - things like season premiers and "catch-up" episodes. I'm sure NBC could make that available like everyone else if they wanted.



    Personally, I wouldn't care if iTunes had variable pricing. But let's be realistic - NBC wanted to raise prices and/or require you to purchase something you didn't want along with what you did want, and Apple didn't want that to happen. I just don't believe that NBC was on the side of the consumer in these negotiations. It just doesn't make sense, the incentives are the other way around.



    And you know they wanted to force you to buy unwanted episodes how?.

    Do you work at Apple or NBC?.



    Edit..



    I just realized that you are speculating and also I suppose NBC could try to do that (there is nothing that would prevent them from doing something like that if they get the control).. in which case, you just don't buy the episodes.
  • Reply 113 of 120
    wnursewnurse Posts: 427member
    Ok folks, hope you are sitting down.. in fact, get a paper and pen to write down the date



    ready?...



    I'm gonna praise apple.. they reduced the price of the iphone by a whopping 200..

    You think steve has been reading my posts?.



    Frankly I'm surprised cause the iphone has been selling well and even with the ipod selling extremely well, apple never drops the ipod price that quickly, but they dropped the iphone price quickly.



    Of course, i still cannot get one (i not too long ago signed a long term contract, 2 years with sprint) but i can recommend the iphone to my friends now.. it's no longer overpriced.



    Still a bit pricey (but all new pda's and smartphones are a little bit pricey).



    Thanks Steve for listening to me.. now I can tell my girlfriend it's ok to get one.



    (of course, she can get greedy and wait to see if there will be a further price drop.. it's up to her).
  • Reply 114 of 120
    melgrossmelgross Posts: 33,510member
    Quote:
    Originally Posted by wnurse View Post


    Ok folks, hope you are sitting down.. in fact, get a paper and pen to write down the date



    ready?...



    I'm gonna praise apple.. they reduced the price of the iphone by a whopping 200..

    You think steve has been reading my posts?.



    Frankly I'm surprised cause the iphone has been selling well and even with the ipod selling extremely well, apple never drops the ipod price that quickly, but they dropped the iphone price quickly.



    Of course, i still cannot get one (i not too long ago signed a long term contract, 2 years with sprint) but i can recommend the iphone to my friends now.. it's no longer overpriced.



    Still a bit pricey (but all new pda's and smartphones are a little bit pricey).



    Thanks Steve for listening to me.. now I can tell my girlfriend it's ok to get one.



    (of course, she can get greedy and wait to see if there will be a further price drop.. it's up to her).



    Flash prices dropped a bunch this past month, and it's possible that jobs is also reading my posts when I suggest that Apple share some of the booty they are getting form ATT from each sale.
  • Reply 115 of 120
    backtomacbacktomac Posts: 4,579member
    Quote:
    Originally Posted by melgross View Post


    Flash prices dropped a bunch this past month, and it's possible that jobs is also reading my posts when I suggest that Apple share some of the booty they are getting form ATT from each sale.



    I think that sales just ain't what Apple needed them to be. Apparently they won't sell the millionth one until sometime this month. At that pace 4 mil ain't happening by he end of the year.



    I don't know if I would call the move desperate but it's definitely aggressive. They aren't going to pull a Sony and wait one year before they figure out that something's wrong.
  • Reply 116 of 120
    melgrossmelgross Posts: 33,510member
    Quote:
    Originally Posted by backtomac View Post


    I think that sales just ain't what Apple needed them to be. Apparently they won't sell the millionth one until sometime this month. At that pace 4 mil ain't happening by he end of the year.



    I don't know if I would call the move desperate but it's definitely aggressive. They aren't going to pull a Sony and wait one year before they figure out that something's wrong.



    The only sales goal Apple stated until recently, was the 10 million by the end of 2008.



    The recent goal was 1 million by the end of September. We really don't know how close they are to that.



    I don't know of any Apple statement about a 4 million goal by the end of the year.
  • Reply 117 of 120
    melgrossmelgross Posts: 33,510member
    Oops!
  • Reply 118 of 120
    backtomacbacktomac Posts: 4,579member
    Quote:
    Originally Posted by melgross View Post


    The only sales goal Apple stated until recently, was the 10 million by the end of 2008.



    The recent goal was 1 million by the end of September. We really don't know how close they are to that.



    I don't know of any Apple statement about a 4 million goal by the end of the year.



    Mel I can't find where I came across the 4 million by the end of the year. Maybe it was post by another member and I didn't verify it. Anyway I still think they are behind the pace they need to eb to sell 10 million by the end of 08. 300,000 per month ain't gonna do it. That only gets you to 5.4 million by the end of next year. Things should improve when sales begin in Europe, Canada and Asia but who knows when that'll occur and hpw brisk those sales will be. Honestly I'm surprised iPhones haven't been rolled out in Europe or Canada yet.
  • Reply 119 of 120
    melgrossmelgross Posts: 33,510member
    Quote:
    Originally Posted by backtomac View Post


    Mel I can't find where I came across the 4 million by the end of the year. Maybe it was post by another member and I didn't verify it. Anyway I still think they are behind the pace they need to eb to sell 10 million by the end of 08. 300,000 per month ain't gonna do it. That only gets you to 5.4 million by the end of next year. Things should improve when sales begin in Europe, Canada and Asia but who knows when that'll occur and hpw brisk those sales will be. Honestly I'm surprised iPhones haven't been rolled out in Europe or Canada yet.



    I totally agree that 300 thousand a month won't cut it. I'm just saying that it won't be that low a number for much longer.



    Apple didn't give a date as to when the phone would move out of the US (in an official way, at least).
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