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Apple to Stop Selling NBC Television Shows
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This isn't the 90's all over again.
Wow, I'm so glad the Macintosh OS didn't take off and create a "monopoly" in the 90's. A monopolizing computing platform really wasn't the answer going forward. That's why we have Microsoft Windows™ which is not a mono.... oh wait never mind.
I get so sick of the Universal/NBC rescueing us from the evil iTunes monopoly schtick. So, one answer is to sell TV shows on XBOX live exclusively? Really? How is that any better. Lets see, to get one episode of The Office on iTunes I need a computer (Mac or PC doesn't mater). I probably already have one of those. Then I download a free copy of iTunes and pay $1.99 to download and watch the episode. If I want I can buy an iPod so I can watch it anywhere, but I don't have to. But NBC has a much better option planned. I'm supposed to buy a $400 XBox then most likely subscribe to XBox live then pay at least $3-$4. Or maybe you won't need the XBox there will be some software you can download to play it. Either way you'll NEED to have Windows. Where is this free market consumer choice Universal/NBC wants to deliver us to?
This isn't Apple of the 90's. This isn't a computer or OS or any product they invented or assembeled. They are just a reseller in this case. They never intend to be the only place in town to buy music, movies an TV shows. The rest of the market is just too incompetent to come up with something better. Imagine if when CDs came out only RadioShack had any sucess selling them by finding the right price and market. Would people say RadioShack had a monopoly? And would the solution be to pull CDs from RadioShack's shelves and let Best Buy sell more expensive versions that don't play on everyone's CD players?
And as for margins, Apple can decide whatever it wants. Charmin doesn't know as much about how much to charge for toilet paper as Walmart does. That's Walmarts job, they figure out what people will pay for a set quantity. Plus they need to maintain shelf space, employees, electricity, etc. to sell the stuff. And maybe they should make a little money on top to of that or why else do it, right? Walmart's really good at selling toilet paper, and they think $1.99 a pack is about right. Charmin is already getting $1 of that but say they want 3. Guess who's not selling Charmin TP anymore? Resellers know the market better then producers when it comes to inexpensive items. Walmart proves this. They tell producers how much of a cut they'll get.
But lets say NBC sells the shows direct. 2 options. No DRM with comercials. If that is true the price will have to be free or less then $1.99. Of course they'll need to set up an online store and pay for bandwith. Ouch, that sounds hard and expensive. But there is option 2, lisence a DRM and online store front. Who has one? Microsoft. But wont that be just like what they had with Apple and iTunes? No, because it's Microsoft and it's okay for them to get royalties from EVERYTHING.
But what makes Microsoft even awesomer is that no only do they get money from licensing the DRM and storefront. They get money from licensing the proprietery WMA/WMV format that they'll forvce you to use. And everyone that wants to play it will have to pay that tax too. I want all that so bad I can hardly contain mysewelf!
Apple just wants to sell you a damn TV show so you can fill your video iPod (which you don't have to buy). NBC made Apple put a lock on it so, yeah, there is a Fairplay device lock in. Why should Apple maintain that for free. But the H.264 MPEG 4 and ACC are both open formats. Apple isn't making money off them. They just want to sell a damn iPod. They don't care what you put on it or where it came from. The only reason they do sell content is because nobody else stepped up.
A lot of other posters with decent critical thinking skill have brought up most of these points. You people are supper cool. Some other people just don't get it. Learn how to THINK not just spout regurgitated soundbytes.
P.S. I'll miss The Office and 30Rock. I'm an American living in the UK and that was my only way to get it (legally).
Wow, I'm so glad the Macintosh OS didn't take off and create a "monopoly" in the 90's. A monopolizing computing platform really wasn't the answer going forward. That's why we have Microsoft Windows™ which is not a mono.... oh wait never mind.
I get so sick of the Universal/NBC rescueing us from the evil iTunes monopoly schtick. So, one answer is to sell TV shows on XBOX live exclusively? Really? How is that any better. Lets see, to get one episode of The Office on iTunes I need a computer (Mac or PC doesn't mater). I probably already have one of those. Then I download a free copy of iTunes and pay $1.99 to download and watch the episode. If I want I can buy an iPod so I can watch it anywhere, but I don't have to. But NBC has a much better option planned. I'm supposed to buy a $400 XBox then most likely subscribe to XBox live then pay at least $3-$4. Or maybe you won't need the XBox there will be some software you can download to play it. Either way you'll NEED to have Windows. Where is this free market consumer choice Universal/NBC wants to deliver us to?
This isn't Apple of the 90's. This isn't a computer or OS or any product they invented or assembeled. They are just a reseller in this case. They never intend to be the only place in town to buy music, movies an TV shows. The rest of the market is just too incompetent to come up with something better. Imagine if when CDs came out only RadioShack had any sucess selling them by finding the right price and market. Would people say RadioShack had a monopoly? And would the solution be to pull CDs from RadioShack's shelves and let Best Buy sell more expensive versions that don't play on everyone's CD players?
And as for margins, Apple can decide whatever it wants. Charmin doesn't know as much about how much to charge for toilet paper as Walmart does. That's Walmarts job, they figure out what people will pay for a set quantity. Plus they need to maintain shelf space, employees, electricity, etc. to sell the stuff. And maybe they should make a little money on top to of that or why else do it, right? Walmart's really good at selling toilet paper, and they think $1.99 a pack is about right. Charmin is already getting $1 of that but say they want 3. Guess who's not selling Charmin TP anymore? Resellers know the market better then producers when it comes to inexpensive items. Walmart proves this. They tell producers how much of a cut they'll get.
But lets say NBC sells the shows direct. 2 options. No DRM with comercials. If that is true the price will have to be free or less then $1.99. Of course they'll need to set up an online store and pay for bandwith. Ouch, that sounds hard and expensive. But there is option 2, lisence a DRM and online store front. Who has one? Microsoft. But wont that be just like what they had with Apple and iTunes? No, because it's Microsoft and it's okay for them to get royalties from EVERYTHING.
But what makes Microsoft even awesomer is that no only do they get money from licensing the DRM and storefront. They get money from licensing the proprietery WMA/WMV format that they'll forvce you to use. And everyone that wants to play it will have to pay that tax too. I want all that so bad I can hardly contain mysewelf!
Apple just wants to sell you a damn TV show so you can fill your video iPod (which you don't have to buy). NBC made Apple put a lock on it so, yeah, there is a Fairplay device lock in. Why should Apple maintain that for free. But the H.264 MPEG 4 and ACC are both open formats. Apple isn't making money off them. They just want to sell a damn iPod. They don't care what you put on it or where it came from. The only reason they do sell content is because nobody else stepped up.
A lot of other posters with decent critical thinking skill have brought up most of these points. You people are supper cool. Some other people just don't get it. Learn how to THINK not just spout regurgitated soundbytes.
P.S. I'll miss The Office and 30Rock. I'm an American living in the UK and that was my only way to get it (legally).
Wow... such a dumb move. Just like universal's move, in my opinion. I think they'll eventually come back after failing with other formats.
This just shows how delusional these companies are. They are not ready for the new digital age, they're money hungry, and they think they can do whatever DRM crazy stuff they want. In the end they will see their profit loss and will come back, or fall because of their dumb executives who obviously aren't up to date on the times.
Steve
Steve
I remebered BSG on iTunes have bad coding quality.
Maybe it has something to do with this evil NBC.
Just dug this up-- I think it does a good job of explaining the economics of the situation:
http://www.engadget.com/2005/10/27/the-clicker-television-physics-and-the-1-99-price-point/
Short summary: NBC makes about 3 times as much when we download a show as they would if we watched it on the air, but TVs got their own version of "albums allow us to stuff crap between the gems".
Ok, the article is more balanced than my summary...
http://www.engadget.com/2005/10/27/the-clicker-television-physics-and-the-1-99-price-point/
Short summary: NBC makes about 3 times as much when we download a show as they would if we watched it on the air, but TVs got their own version of "albums allow us to stuff crap between the gems".
Ok, the article is more balanced than my summary...
Not only are people not willing to pay that much, but, quick poll here, how many people go to the major tv stations website to view content, see what's new, let alone, to buy a tv program, hope there will be no problems with the download and that it'll play on the Mac computer, iPod with video, or iPhone?
I watch my fair amount of favorite tv shows. I like Grey's Anatomy. Even went to ABC website to view a few episodes I missed to maintain continuity of storyline. Heck even ABC advertised after the Thursday evening show, to watch it again on the web. But I don't know how much of a success that was because I don't see that being done much now (I know it's summer programming, reruns and such). But I haven't been to any stations website or favorite programs website since. I now enjoy 'psych', the tv station pushes that sitcom's online site to beat the band telling potential visitors they can go for bios, character blogs, prizes, surprises, stuff like that, but it never was enough of an enticement to get me to visit and do a quick tour. I just enjoy the show when I can catch it Friday evenings.
Good luck NBC, hopefully this won't be as much of a folly as people here seem to forecast.
i just sent NBC an email through their site. if i ever want to watch any nbc shows on my iphone or ipod, i'll just tivo them and transfer them to my mac. i'm not buying any nbc show for $4.99. the people behind this decision at nbc are high or not very bright. my guess is both.
Goodbye, NBC...
Goodbye....
Maybe you can pawn off episodes of your "wonderful" new Sci-Fi series, "Flash Gordon" on XBox Live so they can watch it on the road with their Zunes...
We, on the otherhand, will be enjoying far better shows, such as "Stargate" (way to go, MGM!) on our new widescreen touch iPods...
You won't really be missed...
Goodbye....
Maybe you can pawn off episodes of your "wonderful" new Sci-Fi series, "Flash Gordon" on XBox Live so they can watch it on the road with their Zunes...
We, on the otherhand, will be enjoying far better shows, such as "Stargate" (way to go, MGM!) on our new widescreen touch iPods...
You won't really be missed...
Here's a thought...
What if we took a page out of the 'Save Jericho' movement's book and sent NBC the message that we think they're nuts? And do it in a way that would be very difficult for NBC to just ignore? Send them nuts!!
Just a thought...
I'm surprised by the one dimensional response here. Someone at the beginning of this thread - sorry, it's long, can't remember who - said it right:
this was a negotiating position by NBC. They highballed it, expecting Apple to give a lowball response, and then meet in the middle; OR
they highballed it knowing Apple would refuse, giving them an excuse to go elsewhere.
I do not believe they ever wanted to charge $5 per show. They want to charge $2 per show somewhere else, anywhere else but Apple, to break Apple. THEN they will start charging $2.50 or $3 per new show, less for old shows nobody wants, the same thing the music publishers wanted to do, in some venue where they are not beholden to Apple.
this was a negotiating position by NBC. They highballed it, expecting Apple to give a lowball response, and then meet in the middle; OR
they highballed it knowing Apple would refuse, giving them an excuse to go elsewhere.
I do not believe they ever wanted to charge $5 per show. They want to charge $2 per show somewhere else, anywhere else but Apple, to break Apple. THEN they will start charging $2.50 or $3 per new show, less for old shows nobody wants, the same thing the music publishers wanted to do, in some venue where they are not beholden to Apple.
Now we will see if that top ten is actually being monitored for real and will change starting next month when NBC programming will not be sold since Apple is withdrawing programming as opposed to offering only half a season then having to pull it out from under the customer's feet.
But if 'The Office' still shows up as the top 10 download, what will that say for Apple's analytical analysis of the Top 10 sales iTunes is disseminating.
Not a hater
I didn't mean to be hateful. I said I agree with a lot of people here and I said they were "super cool". But there are a few that just don't seem to get it.
And don't split hairs on the TP. It was just an example. Plus, there are lots of different kinds of TV shows and different kinds of TP. I am starting to regret using my TP example... Then agian most TV programing does belong in the toilet.
Anyway, my overall postion is that you should be able to get whatever content you want from anywhere. I choose iTunes someone else chooses... some other great media seller. I really don't care as long as it's fair competition.
I didn't mean to be hateful. I said I agree with a lot of people here and I said they were "super cool". But there are a few that just don't seem to get it.
And don't split hairs on the TP. It was just an example. Plus, there are lots of different kinds of TV shows and different kinds of TP. I am starting to regret using my TP example... Then agian most TV programing does belong in the toilet.
Anyway, my overall postion is that you should be able to get whatever content you want from anywhere. I choose iTunes someone else chooses... some other great media seller. I really don't care as long as it's fair competition.
Poll
Everytime I've gone to a network website you get even more commercials than you do on cable. It's not worth it, so I won't do it and when NBC comes back to renegotiate with Apple after they fail at whatever they plan on doing, well, it's Apples perogative to charge them a bit more for coming back on board. In the mean time, there is nothing that NBC offers that can't be had through my local Public library or through NetFlix and there is no way in heck NBC will see a dime of my money. I'll DVR Heroes from now on and rip it to disc and share it with my friends just like the good ol' 70's and 80's when we used to video tape shows. The last century, afterall, seems to be the mentality of corporate NBC.
Everytime I've gone to a network website you get even more commercials than you do on cable. It's not worth it, so I won't do it and when NBC comes back to renegotiate with Apple after they fail at whatever they plan on doing, well, it's Apples perogative to charge them a bit more for coming back on board. In the mean time, there is nothing that NBC offers that can't be had through my local Public library or through NetFlix and there is no way in heck NBC will see a dime of my money. I'll DVR Heroes from now on and rip it to disc and share it with my friends just like the good ol' 70's and 80's when we used to video tape shows. The last century, afterall, seems to be the mentality of corporate NBC.
another point: CNN Money is saying NBC shows accounts for 40% of ITMS sales, not 30% as claimed by apple..(NBC itself claims the number is 45~50%)
why are you so against letting the facts play out itself?
I was simply saying "mark your words (that NBC sell shows for $4.95/episode) and lets wait and see"
why are you so against letting the facts play out itself?
I was just saying that it would show that it is a static presentation...
If "The Office" is no longer available for sale, and now no one can buy it because it is pulled from iTunes, it can never show up in the 'Top Ten' list. If it still shows up on iTunes as a Top Ten then no one is updating that portion of the website's information...
Like when I took a meteorology class in college, it was taught by a retired local tv weatherman. He told of an interesting story regarding the weather channel. And this was a ways back and the weather channel was relatively a new concept of 24 hour weather station... but the teacher said that the "crawl" of weather information that one would see at the bottom of the tv screen, the humidity/dewpoint info for the local area never changed. Even during storms and fronts that brought about High's and Low's (Pressure Systems and a change in the weather). It was static.
NBC better watch their back!!
YouTube is just an example of the stiff competition coming in the next few years. There are so many choices for consumers. NBC and Universal are just fighting a losing battle.
Instead of being more innovative than a kid with a guitar that gets 25 million views on YouTube, they are posturing themselves with Microsoft and will fail while making themselves enemies.
YouTube is just an example of the stiff competition coming in the next few years. There are so many choices for consumers. NBC and Universal are just fighting a losing battle.
Instead of being more innovative than a kid with a guitar that gets 25 million views on YouTube, they are posturing themselves with Microsoft and will fail while making themselves enemies.
Yes, it's about time!
I imagine this has something to do with Canadian regulations, though.
BTW, this isn't really about NBC, it's about Sony and all the other labels that were trying to negotiate for a higher price for downloads. This is a warning shot across the bow to them - Apple will stick with the current price structure.
OK, whoop-de-doo NBC will make the same amount of money off of 1 minute of Superbowl ads or 2 minutes of Olympic ad time.
The reasoning still stands. These sales are small potatoes to NBC and they can take or leave itunes sales.
However Apple is in a different situation. They really need a large catalog of video content to drive Apple TV sales, and ipod video sales. Otherwise Apple TV dies before it has a chance to even grow.