NBC chief says Apple 'destroyed' music pricing

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  • Reply 101 of 176
    Only other greedy companies will be able to feel your pain. I'm sure your continued partnership with Microsoft has no bearing on this. We would all love to see Zune make a pathway into TV shows that cost $4.99 or more.
  • Reply 102 of 176
    Quote:
    Originally Posted by drblank View Post




    I think that NBC is getting nervous. Isn't NBC getting sold off from GE? Aren't there discussions of that happening?



    If this is true...wouldn't it be classic if Apple bought NBC.



    Gold I tell ya, pure gold.
  • Reply 103 of 176
    Here's the thing - Apple and the content cartels have always been natural enemies. It's astonishing to me that the cartels have taken this long to figure it out, Apple's known it from the beginning.



    The big media companies do not create anything. In one of their business practices, they do enable the creation of content by providing the up-front capital. But because of their lock on distribution, they can extract completely unreasonable terms from anybody who wants to get paid for producing that content. With the way that the business is structured, there's only one game in town - it just has many faces. It's highway robbery in the classic sense - they control a critical piece of the road from creation to the consumer and get to take away as much as they can carry.



    That is, there was only one game in town. Now comes the Internet - you don't need a network of affiliates all over the country, you don't need to buy into a basic cable distribution package, you don't need to grovel at whatever deals the incompetent cartel executives tell you are in your best interests and ultimately you don't have to just swallow it when they tell you to dumb it down and add more tits and action. If you can get it created, the Internet will take care of the distribution for what is essentially free (at least, if you can figure out a way to make money, it'll be a tiny fraction of what people will pay).



    The content cartels' days are numbered, and they're going to blame everybody they can for the extinction of their business model when it's really just the march of technology that has finally obsoleted their highway robbery.



    We're not there yet but Apple, and anybody else who can figure out how to cut the cartels out of the decision making process while still allowing content creators to make money, is going to put these dinosaurs in the ground. And not a minute too soon.
  • Reply 104 of 176
    Quote:
    Originally Posted by jazzman View Post


    Yeah, or a cellphone manufacturer wanting a cut from the mobile provider - that would be absurd, I tell you, ABSURD!











    Score One For Jazzman. Point!
  • Reply 105 of 176
    Explains why that shit-hole network has been in LAST place for years! What a jackass! Most of NBC's shows aren't worth paying for. Heroes is the only thing they have now.



    He actually thinks sales of NBC shows increased iPod sales? Where has this moron been since 2001? NBC shows had nothing to do with hardware sales.
  • Reply 106 of 176
    Quote:
    Originally Posted by babasyzygy View Post


    Here's the thing - Apple and the content cartels have always been natural enemies. It's astonishing to me that they've taken this long to figure it out.



    The big media companies do not create anything. In one of their business practices, they do enable the creation of content by providing the up-front capital. But because of their lock on distribution, they can extract completely unreasonable terms from anybody who wants to get paid for producing that content. With the way that the business is structured, there's only one game in town - it just has many faces. It's highway robbery in the classic sense - they control a critical piece of the road from creation to the consumer and get to take away as much as they can carry.



    That is, there was only one game in town. Now comes the Internet - you don't need a network of affiliates all over the country, you don't need to buy into a basic cable distribution package, you don't need to grovel at whatever deals the incompetent cartel executives tell you are in your best interests and ultimately you don't have to just swallow it when they tell you to dumb it down and add more tits and action. If you can get it created, the Internet will take care of the distribution for what is essentially free (at least, if you can figure out a way to make money, it'll be a tiny fraction of what people will pay).



    The content cartels' days are numbered, and they're going to blame everybody they can for the extinction of their business model when it's really just the march of technology that has finally obsoleted their highway robbery.



    We're not there yet but Apple, and anybody else who can figure out how to cut the cartels out of the decision making process while still allowing content creators to make money, is going to put these dinosaurs in the ground. And not a minute too soon.



    Wow! I couldn't have said it better myself!
  • Reply 107 of 176
    Quote:
    Originally Posted by nicky g View Post


    ? No way they only made $15 Million revenue off of iTunes sales, I call BS.



    They could have if the majority of iTMS video sales was made up of music videos and films, making NBC's $15m a 40% cut of a small slice of the pie.



    Of course, that theory makes the idea of raising prices even more ridiculous...
  • Reply 108 of 176
    mcdavemcdave Posts: 1,927member
    Quote:
    Originally Posted by AppleInsider View Post


    He said that 50 million streams of TV shows accessed on NBC.com during the month of October are proof that there is a demand for traditional TV series on the web.



    ?It?s extraordinary,? he said. ?It?s like a small cable channel in our universe that is becoming very successful.?





    until they start charging! Oh, dear dot-bomb2!!



    McD
  • Reply 109 of 176
    Idiot. The music industry had no successful download model until iTunes came along. Until then the rate of illegal downloads was growing steadily. If not for a successful download model the music industry today would be devastated. He's got the whole thing backwards: Apple saved the music industry.
  • Reply 110 of 176
    It would be interesting to see what some random poll research tells us concerning the feelings of American or International customers. I personally want to know how people feel about Apple and music and the music conglomerates...as well as Apple and TV/Movies and the Studios. These forums, as well as myself, are generally biased towards Apple, but what does the average consumer think and feel regarding this? Just a curiosity.
  • Reply 111 of 176
    londorlondor Posts: 258member
    Quote:
    Originally Posted by dpweiblen View Post


    Quote:

    Originally Posted by jazzman

    Yeah, or a cellphone manufacturer wanting a cut from the mobile provider - that would be absurd, I tell you, ABSURD!









    Score One For Jazzman. Point!



    Hahahaha, as if NBC were selling highly desirable shows that are exclusively available at the iTunes Store.
  • Reply 112 of 176
    brussellbrussell Posts: 9,812member
    Quote:
    Originally Posted by irahodges View Post


    It would be interesting to see what some random poll research tells us concerning the feelings of American or International customers. I personally want to know how people feel about Apple and music and the music conglomerates...as well as Apple and TV/Movies and the Studios. These forums, as well as myself, are generally biased towards Apple, but what does the average consumer think and feel regarding this? Just a curiosity.



    Oh I'm sure the average consumer would support NBC's plan: Higher prices for TV shows, higher prices for iPods. Who wouldn't want that?
  • Reply 113 of 176
    As a head of a corporation, this Zucker guy should be ousted. This is some seriously harsh mudslinging that is embarassing and in bad taste. This is no way for a CEO to act!!!



    I don't watch a lot of TV but this kind of BS Crap will encourage me to NEVER watch any programs of theirs!



    Idiot who should be ousted!
  • Reply 114 of 176
    Quote:
    Originally Posted by SpamSandwich View Post


    Ridiculous! NBC already made their money when they sold the ads for these shows. Utter baloney!



    Exactly. He's using creative accounting, by restructuring the categories in which he is calculating revenue streams.



    Excluding Advertising : Made :

    Including Advertising : Made :

    etc.
  • Reply 115 of 176
    Reminds me of the days when the Hollywood Studios had the actors/actresses by the collar and entrenched them in grueling hours of labor for pennies on the dollar.



    Actress Ruth Elizabeth ``Bette'' Davis went to Court over the slave labor wages they were under. She lost but soon followed another case by Olivia de Havilland who won and these two women became two of the most revered actresses in their time.



    Hollywood Studios changed their business model.



    It appears that this time Technology companies are going to change the business model, but this time forever.



    The Media Companies will either adopt and adapt or sell off the divisions that once were cash cows.



    Time Warner is a prime example of a ship sinking rapidly.
  • Reply 116 of 176
    If there is anyone to blame, you have to blame the destruction of the music business on Britney Spears and Paris Hilton. They've taken music towards where only a porn star can become a real singer. And then on that note, one does not even have to be a real singer anymore. Just a porn star who can shake it with a microphone instead of a dildo.



    NBC should consider making porn their new business. Then proudly brand their rainbow colored cock all over the place.
  • Reply 117 of 176
    Quote:
    Originally Posted by Johnny Mozzarella View Post


    While on the surface it may sound similar, Apple's relationship with AT&T is quite different.



    Many people left their current carrier and switched to AT&T so they could get an iPhone.

    No one is switching to the iPod so they can watch NBC content on the go.




    Sure the scale is very different, but the principle is the same. Are you 'sure' not a single ipod owner bought an ipod just so they could watch their favorite show on their work/school commute? In the long run, Apple needs the movie/music industry just as much as the industry need a distribution network. If ripping cds for some reason was made illegal, and the content producers stopped working with Apple and partnered with someone else(e.g microsoft), apple would bend over backwards to get them on board again, and that would include giving them a cut of the hardware sales. Apple is just not willing to go along with this at the moment because they have the most successful platform for digital distribution and loosing NBC is probably a lot cheaper than opening the gates for paying hardware revenues to the content creators.

    Quote:

    AT&T just sells the customer the phone - no sign up - no technical support

    Apple handles the sign up, technical support, advertising, etc.

    NBC gives Apple digitized files, Apple does pretty much everything else and sends them a check.



    Who maintains AT&T's huge and expensive GSM infrastructure? Who paid for the gsm spectrum lisence? Sign up and technical support are relative minor costs when running a teleco company, surely nothing close to the $600/user Apple is earning atm.



    I'm in no way against the at&t/apple deal, great that apple found a partner willing to go along with their terms - I'm sure at&t also makes good money from this partnership. There is however no reason to think apples deals on the iphone are any better/worse than what the music industry wants wants in regards to the ipod.
  • Reply 118 of 176
    londorlondor Posts: 258member
    Apple is getting that from AT&T because of the exclusivity AT&T get on the iPhone. That is a completely different deal that the one between Apple and NBC.
  • Reply 119 of 176
    Hey Zucker !!!



    I would not pay $2.99 for a show. End of story. I am hard pressed to pay $1.99 for the show. Keep in mind that with so many people having PVRs your audience is shrinking.



    Try $0.99 for a show instead. Think of the big picture. Numbers of downloads increase and you make more. If I missed a show would be willing to spring for a buck to watch it. Keep in mind that since you are getting all these shows for the price of your monthly bill already it is like I am paying twice for something.



    TV shows are viewed differently than movies. I am paying my cable bill and 20 minutes of every hour for commercials. How many times do you want to charge me for these shows ?
  • Reply 120 of 176
    nceencee Posts: 857member
    Quote:
    Originally Posted by karlfranz View Post


    As I stated on MacRumors:



    According to Apple's data here Apple has sold over 100 Million TV Shows. At $1.99US per show, that is a gross profit of $199M. If NBC claims that they were responsible for 40% of all video sales, that would mean 40 Million shows or $79.6M gross. If NBC claims they only made $15M in revenue that would mean that Apple pocketed the remaining $64.6M.



    Do you really believe for one minute that NBC agreed to a business deal with Apple where they only get approx 19% of the revenue and Apple gets the remaining 81%!



    Possibly, when you look at equipment out lay?

    Marketing cost(s)?

    Personal to make / keep it running?



    OVERHEAD may have accounted for a fair amount of money, or up front cost(s) that Apple put out to get iTunes up and running?



    Skip
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