Zucker is correct in that NBC has the right to set the pricing of it's shows. And Apple maintains the option not to buy product (the shows) if they don't like the price.
Unless you're dealing in the world of private label, where Wal-Mart might say to a vendor "I want a pair of black socks at 25 cents per pair at a million pairs," where do retailers maintain primary pricing control? It's not common at all.
Retailers can chose to not buy products, and they can try to negotiate, but there's a limit to that. Wal-Mart does have an upper hand though, which numerous suppliers have gone under trying to please them, just because of the sales volume Wal-Mart represents.
In all respects that I've heard about, iTunes gives media companies a bigger fraction of the pie than the would with a DVD. It's kind of a shame that journalists don't try to corner Zucker on his claim of $15M in profits, I'm pretty sure that's just empty PR.
What prompted me to register and post is the level of disappointment and fustration I have over NBC leaving iTunes.
I love buying TV shows from the iTunes Music Store. I just bought an iPhone this summer and have been purchasing tv seasons to watch on my commute to and from work.
I am a 37-year-old professional and parent, and have never used bit torrent or obtained video by illegal means.
I am in the middle of Season 2 of The Office and want the remaining shows and other NBC content for my iPhone.
I have now been asking people how to bit torrent and am exploring other options, even though I have never considered these things in the past. Not once. This NBC move has prompted me to do so, despite the fact that I feel some of the options are morally wrong.
I pay one carrier (cable) for the content on my tv, and it comes from many places. I want one service for my digital content, too. I will not give my credit card to another company, and I won't do a subscription service outside of iTunes. I also don't want (in the future) to have to go to different places on the internet to buy my content should other networks and media companies decide that the NBC model (whatever it might become) is a good idea. And I don't want ads in my digital content, either. (I don't think I'm asking too much. Just simplicity and a one-stop service.)
I hope NBC comes back. If not, I'm sure they'll be the biggest loser in the end, because if people like me are already exploring *other* options, then I'm sure there are many, many others even more readily and rapidly doing the same.
NBC is underestimating the demand the iPhone and iPod Touch (and other bigger screen mobile devices) will generate for portable video content. It's a shame. (I never thought I'd buy videos for the iPhone when I first purchased it, but since then I'm hooked!)
I like the TIVO options and other ideas people posted here for getting content. I will look into those, too. Thank you!
Another thing to think about is the people that go to iTunes. University students go there for their school content (iTunes U), others for a great selection of free podcasts, others who want to buy music and content legally and want easy 1-click integration with their desktop jukebox program, of which iTunes is by far the most popular.
Why on earth would NBC want to lose access to all those audiences? Hulu will never draw as many eyes as the iTunes Music Store does.
I should add that I never watched The Office until this year when I bought it on iTunes. I don't have a lot of time to watch TV at home. I would have never watched The Office if it wasn't for iTunes. Since I liked it, I was considering sampling other NBC series and pilots to see if I liked them, like Heros. Now I will avoid all NBC series until they come back (but I will get the rest of The Office, first, somehow!)
You are very mistaken. NBC is slightly behind Fox, but massively ahead of the CW (there's no such thing as the WB network anymore). NBC fell behind in 2004 when Frasier and Friends ended while the other networks had hits like CSI, Desperate Housewives, Lost, and American Idol. Now they have hits with Heroes and The Office. And 30 Rock has the potential to be the next Seinfeld. So things are looking better for them.
You make the previous gents point for him. NBC is last. Trying to trot out CW as a buffer is like crowing about winning the NIT Tourney. You're still at best 65th place (actually worse than last) in the real race.
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Again, if you think NBC dumping iTunes is some sort if indicator of self-destruction, you are living in a fantasy world.
Very few people were paying $2 for a TV show that is already available for free. It's a pimple on the ass of what they make from prime-time television advertising dollars. They realized that their original content was helping Apple make a killing off hardware sales. Why would anybody have been interested in the first iPod Video if there was no cool premium content to show off (TV Shows and Disney movies)?
I say ripped content made iPod video relevant and is far more prevalent than downloaded content so far. Obviously you are living in a vacuum because that was probably in the process of changing, but no more for NBC shows. NBC content on iTunes made two shows successful, those two shows did not make the iPod successful. That NBC "made" the iPod Video argument falls apart as an extension of the VCR and DVR paradigm.
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People buy it on the impulse based on knowing they can watch that stuff. Very few of them actually spend significant money to pay for them.
Completely unsupportable statements, I would say incorrect to boot.
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So Apple makes a fortune on iPod sales, while NBC makes peanuts while the would-be traffic to NBC.com is hijacked by Apple. Apple locking iTunes customers into their own DRM doesn't help matters either. That means more profit for Apple (more iPod sales) and less for NBC (limited potential customer base). The business model allowed Apple to exploit NBC. Can you really blame them for cutting it off?
NBC has partnered with Microsoft for their online media distribution using Silverlight. This seems like the best non-Apple-centric move NBC could make as MS was surely looking to pay someone well who would be able to get a fair amount of people to install their Adobe Flash competitor.
Comments
Zucker is correct in that NBC has the right to set the pricing of it's shows. And Apple maintains the option not to buy product (the shows) if they don't like the price.
Unless you're dealing in the world of private label, where Wal-Mart might say to a vendor "I want a pair of black socks at 25 cents per pair at a million pairs," where do retailers maintain primary pricing control? It's not common at all.
Retailers can chose to not buy products, and they can try to negotiate, but there's a limit to that. Wal-Mart does have an upper hand though, which numerous suppliers have gone under trying to please them, just because of the sales volume Wal-Mart represents.
In all respects that I've heard about, iTunes gives media companies a bigger fraction of the pie than the would with a DVD. It's kind of a shame that journalists don't try to corner Zucker on his claim of $15M in profits, I'm pretty sure that's just empty PR.
I just did a Wiki search on the guy...
http://en.wikipedia.org/wiki/Jeff_Zucker#NBC_career
I belive we have a vandal in our midst...
What prompted me to register and post is the level of disappointment and fustration I have over NBC leaving iTunes.
I love buying TV shows from the iTunes Music Store. I just bought an iPhone this summer and have been purchasing tv seasons to watch on my commute to and from work.
I am a 37-year-old professional and parent, and have never used bit torrent or obtained video by illegal means.
I am in the middle of Season 2 of The Office and want the remaining shows and other NBC content for my iPhone.
I have now been asking people how to bit torrent and am exploring other options, even though I have never considered these things in the past. Not once. This NBC move has prompted me to do so, despite the fact that I feel some of the options are morally wrong.
I pay one carrier (cable) for the content on my tv, and it comes from many places. I want one service for my digital content, too. I will not give my credit card to another company, and I won't do a subscription service outside of iTunes. I also don't want (in the future) to have to go to different places on the internet to buy my content should other networks and media companies decide that the NBC model (whatever it might become) is a good idea. And I don't want ads in my digital content, either. (I don't think I'm asking too much. Just simplicity and a one-stop service.)
I hope NBC comes back. If not, I'm sure they'll be the biggest loser in the end, because if people like me are already exploring *other* options, then I'm sure there are many, many others even more readily and rapidly doing the same.
NBC is underestimating the demand the iPhone and iPod Touch (and other bigger screen mobile devices) will generate for portable video content. It's a shame. (I never thought I'd buy videos for the iPhone when I first purchased it, but since then I'm hooked!)
I like the TIVO options and other ideas people posted here for getting content. I will look into those, too. Thank you!
Another thing to think about is the people that go to iTunes. University students go there for their school content (iTunes U), others for a great selection of free podcasts, others who want to buy music and content legally and want easy 1-click integration with their desktop jukebox program, of which iTunes is by far the most popular.
Why on earth would NBC want to lose access to all those audiences? Hulu will never draw as many eyes as the iTunes Music Store does.
Bad move, NBC!
You are very mistaken. NBC is slightly behind Fox, but massively ahead of the CW (there's no such thing as the WB network anymore). NBC fell behind in 2004 when Frasier and Friends ended while the other networks had hits like CSI, Desperate Housewives, Lost, and American Idol. Now they have hits with Heroes and The Office. And 30 Rock has the potential to be the next Seinfeld. So things are looking better for them.
You make the previous gents point for him. NBC is last. Trying to trot out CW as a buffer is like crowing about winning the NIT Tourney. You're still at best 65th place (actually worse than last) in the real race.
Again, if you think NBC dumping iTunes is some sort if indicator of self-destruction, you are living in a fantasy world.
Very few people were paying $2 for a TV show that is already available for free. It's a pimple on the ass of what they make from prime-time television advertising dollars. They realized that their original content was helping Apple make a killing off hardware sales. Why would anybody have been interested in the first iPod Video if there was no cool premium content to show off (TV Shows and Disney movies)?
I say ripped content made iPod video relevant and is far more prevalent than downloaded content so far. Obviously you are living in a vacuum because that was probably in the process of changing, but no more for NBC shows. NBC content on iTunes made two shows successful, those two shows did not make the iPod successful. That NBC "made" the iPod Video argument falls apart as an extension of the VCR and DVR paradigm.
People buy it on the impulse based on knowing they can watch that stuff. Very few of them actually spend significant money to pay for them.
Completely unsupportable statements, I would say incorrect to boot.
So Apple makes a fortune on iPod sales, while NBC makes peanuts while the would-be traffic to NBC.com is hijacked by Apple. Apple locking iTunes customers into their own DRM doesn't help matters either. That means more profit for Apple (more iPod sales) and less for NBC (limited potential customer base). The business model allowed Apple to exploit NBC. Can you really blame them for cutting it off?
Are you originally from the RIAA?