Apple to Stop Selling NBC Television Shows

[clevin]

If by "BIG" numbers you mean pennies...

obviously I meant "percentage"

 

[psycoswimmer]

I was planning on getting a season pass for Season 4 of The Office too. Damn NBC. Now I'm going to have to deal with getting the show "some" other way.

 

[Project]

I understand logically I can't, but

if all those people who accused NBC being "greedy", are really thinking "for end-users" as they claim.

then
I sure can compare, because thats what end-users get. from whichever market. don't you think so?

PS, I agree your analysis of power struggle tho, just feel that $4.99 is an absurd new ads from apple.

Apple will have their margins. And we know Apple is a firm believer in their margins. While they definitely have championed the cause of the consumer in respect to online media for years now, they are answerable to shareholders and want a healthy cashflow just like every other corporation. So I can definitely see NBC asking for a greater than double wholesale price and Apple sticking with their margins thus resulting in a $4.99 retail price.

So the spin Apple put on it is saying that NBC are asking for a $4.99 retail price when in reality Apple just are not prepared to cut their margins to accommodate an increase in the NBC wholesale price in order to maintain a more reasonable retail price. IMO you cant really blame Apple for that. When a supplier comes and wants to more than double the price it charges, then you are put in a really hard position.

I personally think the issue will be resolved but I cant see who will give up a little of their position in order for this to happen. Perhaps increased prices with 720P content is the way forward, in a similar manner to what Apple have done with iTunes Plus. The consumer gets better quality, less restrictive content for a premium, and both Apple and the supplier makes a little more money.

 

[Neuroguy]

Greedy Fat Piggies

As others have said, I can't agree more that this is just NBC being greedy fat little piggies.

I suppose they don't know that there are alternatives out there that some people will use to get the shows for free.

Idiots.

Neuroguy

 

[williedigital]

I think everybody has been waiting for this since January. Somebody is dragging their heels. Apple? Studios? No HD on iTunes = death for AppleTV.

Maybe the reason they wanted to raise the price was because it was HD content? Apple wanted to sell HD content at the same price as SD now? NBC isn't stupid. They know people won't pay $5 per episode of the current content, so there is something going on here that we don't know.

 

[clevin]

I personally think the issue will be resolved but I cant see who will give up a little of their position in order for this to happen. Perhaps increased prices with 720P content is the way forward, in a similar manner to what Apple have done with iTunes Plus. The consumer gets better quality, less restrictive content for a premium, and both Apple and the supplier makes a little more money.

my frank judgement is: apple will lose

Apple did very impressive job opening online market. But now the market is mature, and monopoly isn't working for everybody, just like computer world, everybody want some profit, not only apple. Apple is simply repeating what it did back in 1990s with macs. all over again.

end users will flock to any seller as long as they get lower price. NBC can sell TV shows for as low as they want, since they virtually pay nothing extra. Apple has no way to compete with that possibility.

$4.99 is such a lame trick, it won't fly an inch as soon as NBC store goes online.

 

[sartinsauce]

I watch on Demand HD films and TV regularly via Comcast. Sometimes I watch CBS's CSI. It is FREE on HD On demand and there is a one minute commercial. Maybe two at the most. So the CBS shows are free.

I'm so happy you watch that HD Comcast On Demand CSI. I make that and my co-workers and I always wonder if anyone is viewing it. Comcast doesn't give us any numbers about viewership. I don't even know if they have the techonology to track their viewership, but I'm guessing they do.

 

[Stampyhead]

I say we boycott NBC.

I won't have a choice. My schedule doesn't allow me to watch shows when they air, so I download all the shows I watch from iTunes. NBC removing themselves from iTunes will force me to boycott them, whether I want to or not. Darn, I was really looking forward to the next season of 'Heros' too. Oh well...

 

[apple_iBoy]

Good idea. Seinfeld was a master at this. Remember entire shows were about products? Twix at the auto shop, chocolate dibs in the operating room.

Oh I'm rather sure that the operating room episode referenced Junior Mints.

See! It stuck with me all that time!

And don't forget Sue Ellen Mischke, heir to the O'Henry candy bar fortune!

 

[Ha ze]

No doubt that if NBC doesn't change their mind it's going to be a big loss to the iTS. That said I'm really happy Apple stood their ground about the end user experience (once again). NBC on top of $4.99 also wanted to create bundles, i.e you want office? Well you need to buy scrubs too. Again, another greedy move.

This should also be a clear message to the other networks, that if they are willing to let their #1 source for programming go, that they will more then likely let anyone go if they wont agree to these terms.

 

[Project]

Now, only one comment,as I am not a "cost what cost Apple supporter", I'd like to know from them what is with the ripp off prices charged on the UK store???????? They are substantially higher than US prices, and don't tell me is sales tax, that is bulls****

Its down to a very strong £ at the moment and VAT. You can get more than $2 for the £ right now which is crazy and serves to work against us for this kind of stuff. I do think £1.49 would be a more realistic and reasonable price though so I agree that it is perhaps too expensive. But to compare our prices to the States based on the current exchange rate is very naive, given that fluctuations in the rate would wreak havoc on your business is you based your price solely on it. As an example, the average salary in this country is what, £22k? The average salary in the States is less than $44k. So cost of living comes into play.

 

[anonmill]

okay we are on page seven of this discussion and I am just curious. What of this hulu thing? Don't get me wrong, I am as disgusted by this as anyone (I own and AppleTV that I enjoy BSG, The Office, and Scrubs on it), but we are talking about hundreds of millions of dollars here. Close minded as NBC/Universal maybe they would not have let themselves get into such a risky situation without some sort of confidence. Of course there are many other avenues, if sub-par, to distribute their content, and I am sure it won't be $4.99. But they recognize iTunes is great and the 800lbs gorilla in the arena. So again I ask, what would this hulu.com (if that is what it is or whatever else) have to be to make them think it is different than every other attempt topple the current environment? Hypothetically, maybe they could pull something out of the air that even Apple would have to react to because it is truely innovative (they could get luckky ). I guess I am just curious. Apple seems to have the upper hand right now, what could be their weakness if they get blindsided? (Again I hope they don't, I have a lot of money invested in their products/services )

 

[bugabuga]

I won't have a choice. My schedule doesn't allow me to watch shows when they air, so I download all the shows I watch from iTunes. NBC removing themselves from iTunes will force me to boycott them, whether I want to or not. Darn, I was really looking forward to the next season of 'Heros' too. Oh well...

I'm sure they'll put it on their web site, like the other shows they show for free

 

[sananda]

Oh I'm rather sure that the operating room episode referenced Junior Mints.

they can be very refreshing, you know.

 

[Project]

okay we are on page seven of this discussion and I am just curious. What of this hulu thing? Don't get me wrong, I am as disgusted by this as anyone (I own and AppleTV that I enjoy BSG, The Office, and Scrubs on it), but we are talking about hundreds of millions of dollars here. Close minded as NBC/Universal maybe they would not have let themselves get into such a risky situation without some sort of confidence. Of course there are many other avenues, if sub-par, to distribute their content, and I am sure it won't be $4.99. But they recognize iTunes is great and the 800lbs gorilla in the arena. So again I ask, what would this hulu.com (if that is what it is or whatever else) have to be to make them think it is different than every other attempt topple the current environment? Hypothetically, maybe they could pull something out of the air that even Apple would have to react to because it is truely innovative (they could get luckky ). I guess I am just curious. Apple seems to have the upper hand right now, what could be their weakness if they get blindsided? (Again I hope they don't, I have a lot of money invested in their products/services )

Its a company set up by News Corp and NBC to primarily challenge the might of Google/YouTube. But as you can see, Apple is also falling foul of it.

The plan is to make all of their content free on the Hulu website, supported by ads.

 

[Maccus Aurelius]

agree. we shall see.

yes, because it IS NOT true

apple tried to paint NBC as greedy so they say end users' price will be $4.99. of course, apple didn't bother to say that NBC might just want a bigger revenue sharing, rather than charging end-users more. i.e. NBC want more money from apple, not end users, while apple would just transfer this to end-users, now, who is greedy? can you really tell?

Considering that NBC gets the bulk of the revenue generated by the downloads, I'd say that it doesn't make any difference how you slice it, they're being greedy as hell.

 

[clevin]

I guess I am just curious. Apple seems to have the upper hand right now, what could be their weakness if they get blindsided? (Again I hope they don't, I have a lot of money invested in their products/services )

the weakness is apple doesn't produce content, and each episode of tv dama cost ~$4m.

Considering that NBC gets the bulk of the revenue generated by the downloads

please show me the number

 

[anonmill]

my frank judgement is: apple will lose

Apple did very impressive job opening online market. But now the market is mature, and monopoly isn't working for everybody, just like computer world, everybody want some profit, not only apple. Apple is simply repeating what it did back in 1990s with macs. all over again.

end users will flock to any seller as long as they get lower price. NBC can sell TV shows for as low as they want, since they virtually pay nothing extra. Apple has no way to compete with that possibility.

$4.99 is such a lame trick, it won't fly an inch as soon as NBC store goes online.

I don't agree 100%, but certainly there are some strong similarities that can be drawn between the mac of the 80's - 90's and this situation.

 

[AT71]

4.99 per episode is madness!

Read this in NYT

NBC Universal is also seeking better piracy controls

What on earth is NBC Universal talking about? What piracy? The DRMs are so tight already with iTunes videos.

 

[dcranston]

We know Apple takes a cut of the shows they sell. I don't know what percentage, but lets assume it's a 50/50 split.

I'll round things up to make it easy.

NBC gets 1$
Apple get 1$

According to the press release, NBC wants double the wholesale price.

NBC 2$ + Apple 1$ = 3$

Even if NBC took all the money (which they don't) to most you could pay if you double it is 4$.

But your premise is based on Apple being able to offer NBC a "discount" over the negotiations they have with every other network. From my understanding, Apple takes a PERCENTAGE. In other words, If NBC *more than* doubles the prices (as the PR says), Apple would have to actually take a smaller percentage from NBC in order for the entire price to not more than double, which would set a precedent for all other networks to demand Apple taking a smaller percentage share.

 

[Multimedia]

NBC-Universal Will Be The Biggest Loser In This Scenario

Good riddance, I say. Money hungry little crooks.

yeppers.

Who the heck would pay $4.99 per TV Show episode?

Are you kidding me?

Talk about being greedy.

Greed is Good...

And just like that, Apple takes the PR high ground. Ouch.

Bravo Apple.

Looks like I'll be downloading "The Office" and "30 Rock" from other (free) sources.

EyeTV Hybrid and Network will come out a winner in this case.

Bit Torrent for the win.
They could have had my money, but I guess it's not good enough for them.

EyeTV for the win too.

I doubt they thought that Apple would go for the price hike. More likely they stuck to the absurd price just to scuttle the deal. They, like many other media companies, imagine that they (or one of their partners.. *cough* MS *cough*) can do a better job of selling digital content online. Time will tell, but so far the only significant competition to the iTunes Store is P2P.

Idiots. They'll lose money with any alternative scheme.

4.99 a tv show episode? for that I would just buy the dvd or go the netflix route. what about NBCs 40% of downloads? It is upsetting to hear the 4.99 price when I have things from NBC news which were free.

And still are with an EyeTV hook up to an off air antennae.

talk about shooting yourself in the foot NBC - $4.99 that is ludicrous!

Thankyou iTunes 4 not caving in to these stupid demads!

<3 <3

Yes!

Isn't NBC owned by "evil" Universal? I can see this as some major corporate posturing here. Universal is using NBC and their DRM-free music as a test to see how much clout Apple has. If their ventures fail - then that will be a signal to them that iTunes is the only gig in town. However, their hope is that by withdrawing these "smaller" ventures (in compared to their music sector) they can start an exodus that others may follow.

I don't see this as working at all and I hope it doesn't. Universal's only reason for doing any of this is to hike prices up. Greedy ***** heads. I think they need to "bite the curb".

Right On!

I agree, good for Apple to call their bluff. 30% of iTunes TV show sales cannot be an insubstantial loss for NBC. Just downright greedy!

Brilliant!

I'm glad Apple is keeping a stiffy on pricing. I'm pretty sure Amazon will be Happy to Sell NBC shows or maybe NBC should just give'em away for Free
-Crooks

They already do on their website.

Wow thats just pure greed. If anything they are gaining money from someone who pays two dollars per episode. For example season three of the office has 23 episodes. Thats about 46 dollars if you were to buy the episodes individually. Now at 5 dollars that would come out to about 115 dollars. Who would pay that when you can get the season dvd for about 32 dollars at amazon? At least one company still sticks up for its customers.

Zactly.

 

[balamw]

Apple did very impressive job opening online market. But now the market is mature, and monopoly isn't working for everybody, just like computer world, everybody want some profit, not only apple. Apple is simply repeating what it did back in 1990s with macs. all over again.

end users will flock to any seller as long as they get lower price.

IMHO, you miss the boat.

Apple opened the market, yes, but it is far from mature.

History shows that end users will not always flock to the lower price if the product doesn't do what they want it to do. Real/Rhapsody tried pretty hard to undercut Apple offering tracks at $0.49 for a while, and Buy.com and Walmart have both been selling DRMed tracks for $0.79/$0.88, but if they won't work with my iPod, why bother?

The nice thing about iTunes is that it is simple and for the most part uniform. I know that I can get a track on iTunes for $0.99 and a TV Show for $1.99. Not that some tracks are $1.49 and can't be transferred to my iPod. Noth that tracks are $0.79 on the first Tuesday after the full moon. etc...

I accept FairPlay DRM on audio because it doesn't restrict my from my desired uses of the media, and I always have the right to burn a CD. I accept DRM on the videos because I can still play them on my iPod/computers/TV without hassle, but if they want to shove random DRM schemes down our throats and ties us down to devices of their choosing, the only option is to obtain DRM free content that can work with our chosen devices. (Not just P2P, but things like eyeTV or TiVo to Go).

B

 

[CalBoy]

Isn't NBC owned by "evil" Universal? I can see this as some major corporate posturing here. Universal is using NBC and their DRM-free music as a test to see how much clout Apple has. If their ventures fail - then that will be a signal to them that iTunes is the only gig in town. However, their hope is that by withdrawing these "smaller" ventures (in compared to their music sector) they can start an exodus that others may follow.

I don't see this as working at all and I hope it doesn't. Universal's only reason for doing any of this is to hike prices up. Greedy ***** heads. I think they need to "bite the curb".

Technically, both NBC and Universal are owned by General Electric. However, I think this may have a lot to do with Microsoft. Apparently, Universal gets some money from every Zune sale, which means that they might have had some deal worked out ahead of time. Maybe Microsoft was able to get Universal and NBC's parent company, GE, to give them a good price, while promising to hike up their price to Apple. Either way, I'm saddened by this whole thing.

 

[clevin]

now I found the #
apple gets 55c/episode.

lets bet if NBC will sell their shows for $1.69/episode (1.59, 1.79, 1.89 are sure possible too.)

 

[sosumi1981]

my frank judgement is: apple will lose

Apple did very impressive job opening online market. But now the market is mature, and monopoly isn't working for everybody, just like computer world, everybody want some profit, not only apple. Apple is simply repeating what it did back in 1990s with macs. all over again.

end users will flock to any seller as long as they get lower price. NBC can sell TV shows for as low as they want, since they virtually pay nothing extra. Apple has no way to compete with that possibility.

$4.99 is such a lame trick, it won't fly an inch as soon as NBC store goes online.

Your theory that Apple is somehow "lying" about the $4.99 is mind boggling. Also, a monopoly isn't supposed to work for everyone, it's supposed to work for one company. And it has been pointed out so many times that Apple isn't a monopoly in digital content. Please look it up if you're still having trouble understanding the concept. If NBC can sell their content at a low price, and are going to once they open their own store, why would they pull their content from iTunes. That's just taking away a proven sales channel.