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Apple to Stop Selling NBC Television Shows

sinterp29 said:
I think NBC (Universal) is going to be the bigger loser in this ultimately, though, I would caution Apple not to display too much hubris going forward, because there is a growing perception that partnerships with Apple benefit Apple more than anyone else. I'm not saying that this is the case here, but it's the perception that counts. In that regard, Apple's press release was a wise and timely move.

I still wonder if Apple should not have just bitten the bullet on this one. For one thing, NBC could not have honestly wanted there episodes going for $4.99 while every other network remained at $1.99. It sounds like it was the first move in a game of hardball negotiating that Apple was simply not willing to entertain. In terms of big picture though, Apple could have afforded to take less profit, or even a slight loss, because they are not really in the business of selling music and tv shows, they are in the business of making iPods (and Macs, and iPhones...and one day AppleTVs). iTunes only exists to support the realm of downloadable content, because the more people there are out there downloading music and video, the more iPods Apple is going to sell. Let's face it, if I'm going to watch video on the go I'm probably going to do it on an iPod. As a percentage of revenue, everything Apple makes off of iTunes is pocket change, so why they would want to play hardball with profit sharing kind of confuses me. They are going to punish NBC over this, and have them come back with their tails between their legs, but it'll probably just make other content providers nervous about who they are currently in bed with, and thus explore the option of other alternatives.

In any event, NBC should have known better. For one thing they got a hell of a lot of free advertising through iTunes, and I am almost certain that shows like Heroes would not have been as successful had it not been for iTunes, and people's ability to catch up on eps they missed, or get into the show late into the season. They are completely overplaying their hand, but I guess my point is, so might Apple...
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altho I came down on different conclusion, but your analysis is very nice indeed.
 
jabu31 said:
I think i have noticed that networks are starting to make their own websites available to sell and view their shows.So NBC might just decide their episodes on their own website for $5?!?!

THat sounds smart:confused:
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I will laugh my ass off when they try it and suddenly find out nobody is buying the media. VERY VERY few people would pay that much.
 
According to today's Buzz Out Loud, NBC wanted prices to increase on a per-episode basis from $1.99 to $4.95. All I can say is, what the hell -- Apple knows that those prices are completely unreasonable, and they won't stand for it.
 
Steve is sucha a hard ass

and good for him. So I am usually to busy to plan my life around and episode. Thats why I liked to get me episodes on iTunes. I can watch it when I have time. and I can catch up. I would have a hard time buying the epidode for 5 bones a pop. Seriously helping the torrent sites and promoting piracy. Good JOb NBC (Nabbing Bones Convicts)...i don't know I am just pissed.
 
sinterp29 said:
I think NBC (Universal) is going to be the bigger loser in this ultimately, though, I would caution Apple not to display too much hubris going forward, because there is a growing perception that partnerships with Apple benefit Apple more than anyone else. I'm not saying that this is the case here, but it's the perception that counts. In that regard, Apple's press release was a wise and timely move.

I still wonder if Apple should not have just bitten the bullet on this one. For one thing, NBC could not have honestly wanted there episodes going for $4.99 while every other network remained at $1.99. It sounds like it was the first move in a game of hardball negotiating that Apple was simply not willing to entertain. In terms of big picture though, Apple could have afforded to take less profit, or even a slight loss, because they are not really in the business of selling music and tv shows, they are in the business of making iPods (and Macs, and iPhones...and one day AppleTVs). iTunes only exists to support the realm of downloadable content, because the more people there are out there downloading music and video, the more iPods Apple is going to sell. Let's face it, if I'm going to watch video on the go I'm probably going to do it on an iPod. As a percentage of revenue, everything Apple makes off of iTunes is pocket change, so why they would want to play hardball with profit sharing kind of confuses me. They are going to punish NBC over this, and have them come back with their tails between their legs, but it'll probably just make other content providers nervous about who they are currently in bed with, and thus explore the option of other alternatives.

In any event, NBC should have known better. For one thing they got a hell of a lot of free advertising through iTunes, and I am almost certain that shows like Heroes would not have been as successful had it not been for iTunes, and people's ability to catch up on eps they missed, or get into the show late into the season. They are completely overplaying their hand, but I guess my point is, so might Apple...
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You're right. I didn't even get interested in Heroes until I downloaded a couple of episodes from iTunes. The amount the network wants to charge per episode is ludicrous.
 
exit1200 said:
Looks like I'll be downloading "The Office" and "30 Rock" from other (free) sources.
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Exactly. Which most would do at $4.99 too. I think it's great Apple sticks to it's guns and wont put anything up for any price. That's pretty damn cool.
 
clevin said:
mark your words and lets wait and see.
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Is there anyone besides clevin who actually believes NBC will sell their shows at a LOWER price than $1.99 per episode?

Other than having them free with advertising you can't skip, of course.

Anyone?

I guess it is possible that they'd ask for an outrageous fee from apple, then sell it themselves for far less, but in that case they still come off as sabotaging the deal with apple instead of negotiating in good faith.

This story obviously makes NBC look *really* bad. If apple isn't telling the truth, why hasn't NBC issued a statement correcting them?
 
wow im really surprise i mean the office and heros are in itunes top 10 dl shows the office episode "the job" has been the top 5 for a while what the heck is nbc smoking so lets see 5 bucks times 23 that will be over 100 bucks to dl a season of the office wow
 
While I've gotta say I'm really ticked off about this, I think Apple might be making the right move by not offering NBC's shows this fall.

Let NBC see how their revenues drop before they get a replacement service in place. I don't think NBC's revenue from iTunes is that much, but no executive wants to be responsible for a decision that lowered revenue, even by a small amount.

Apple, on the other hand, has published a statement about their decision, and will come off as a champion for the consumer. In the meantime, iPod sales (which is what iTunes is for) will be buoyed up by (potential) new revisions, and the Christmas season. If Apple's margins on iTunes sales are as low as they say after costs are taken out, then their revenue will drop, but profits will remain largely steady. Mixed news for Wall Street, but probably not too bad.

All that said, I'm still pretty miffed. I've been trying to cut my cable/satellite dependence for a while, and iTunes was going to be my source for anything not broadcast on the big 4 networks...mostly from SciFi and USA. If they'd made this announcement 3 months ago, I could have saved myself about $2000. Damn.
 
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milo said:
Is there anyone besides clevin who actually believes NBC will sell their shows at a LOWER price than $1.99 per episode?

Anyone?
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I don't rule it out. Universal plans to sell DRM free songs for .99.

NBC isn't Universal and songs are not TV shows, but I doubt next quarter's profit is the only motive in either case.
 
pigetstuck said:
email NBC/Universal and let them know your thoughts

http://www.nbc.com/Footer/Contact_Us/
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Bottom line is that the people running NBC are Idiots!

These are the same A**holes that during this year semi final Stanley Cup Playoffs when the game was tied going into over time decided not to broadcast the decisive OT period! That was just unbeleivable!

I wrote them as many others did and told them to stick their Peacock where the sun don't shine!

They are complete morons. I now go out of my way not to watch any of their programing.

I support Apple 100% in their action to drop these buffoons ahead of time!

NBC and it's backers are the pinnacle of arrogance!

$4.99 for a 22 minute over the air program is just plain greed which sure seems to be at the top of many Big Business Agenda now a days!
 
corywoolf said:
Fine with me, I didn't watch any shows on NBC anyways. In fact, besides sports, I could do without the channel on my cable box. I wish I could just choose the handful of channels I actually watch and then just not pay for the rest. Discovery, History, SciFi, AMC, National Geographic, FX, HBO, Cinemax, Starz.
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I hear ya! That is why they fight the Ala Carte option! Most of us don't want all that other Crap!
 
Unspeaked said:
This is way off, and it's something many people have gotten wrong in this thread.

Once and for all, this is the NBC-Universal breakdown:

NBC was bought be the GE Corporation some time back (in the 80s, I think). They were the sole owners until 2004 when Universal took a 20% stake in the company.

Universal itself is owned by French conglomerate Vivendi.

So NBC-Universal is owned 80% by the GE Corporation and 20% by Vivendi SA.

NBC and Universal are NOT the same company, never have been, and don't plan to be anytime soon...
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Not the same company? And by the way, most conglomerates have their products cross over and work with each other. Either way, even if you don't believe that NBC and Universal are owned by the same company (I suppose you think 80% is something to be laughed at), they still have an interest in working together. Their parent companies (GE and Vivendi) aren't going to want one supporting Microsoft and the other supporting Apple; this can create bad blood. Instead, in order to work out a good deal with Microsoft, both companies (NBC and Universal) are probably on board with the project to support Microsoft. I also note that Vivendi makes video games...perhaps Microsoft will be encouraged to pick up more Vivendi titles in the near future;)
 
No Sci-Fi Channel

This also effects cable channels USA,CNN, BRAVO, and most importantly the Sci Fi Channel:(

This really sucks like a hoover because now I will have no way to see Battlestar Galatica, can I cry?
 
Five bucks an episode. Give me a break. That is just plain greedy.

Glad to see that Apple stuck to their guns.

Looks like Bit Torrent for NBC shows and iTunes for the rest.

Maybe NBC will get the hint and return at the more reasonable prices of iTunes.
 
This won't last. NBC will come around eventually. Kudos to Apple for stabbing them right back and realizing that selling half seasons is completely stupid and cutting them off immediately.
 
I just had another thought (it happens, though rarely):

What if NBC is getting presure from the cable/satellite companies?

Cable company: "We can't possibly pay that price while you are cannibalizing our market share by selling on iTunes"
NBC: "OK, we'll cancel our contract with iTunes in December"
Apple: "We'll cancel our contract with NBC _NOW_ and tell the world it's NBC's fault"
NBC: "Uh...crap."
 
IJ Reilly said:
So, who is going to sell NBC shows online, if not Apple?
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No one!

I'm just going to be a bitch and download them in higher quality and a few hours after they have aired through Bittorrent. I buy plenty of music and videos through iTunes to mainly support Apple and the few artists I enjoy to listen to. So if NBC wants to leave iTunes, fine with me. I'm getting the shows no matter what. It was just easier for me to get it though iTunes.
 
I just emailed NBC. It was hard being polite, and not saying F you I'm going to bit torrent all your $tuff now... but rather, just letting them know that I will no longer purchase anything from their network due to the details of them wanting too much money for a show. This sets an ugly standard.

It was tough being polite to them, but polite and smart emails go further.

And thank you Steve Jobs for having backbone.
 
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