As a previous SCI FI employee, SCI FI has little say over this decision. NBC has an entire devision for online and technology initiatives. While a message might get passed along, the .com guys don't have a lot of say in this issue. I believe contacting NBC-UNI or NBC proper is a better approach.
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Apple to Stop Selling NBC Television Shows
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As a previous SCI FI employee, SCI FI has little say over this decision. NBC has an entire devision for online and technology initiatives. While a message might get passed along, the .com guys don't have a lot of say in this issue. I believe contacting NBC-UNI or NBC proper is a better approach.
Lets not also forget the recent rumors that Microsoft have donated towards the $150m allegedly received by Paramount/Dreamworks to move exclusively to HD DVD.
The politics in this industry are staggering. This pricing issue only touches the surface.
The politics in this industry are staggering. This pricing issue only touches the surface.
I didn't say apple is lying, I said apple didn't tell you the whole truth that the reason of $4.99 is partly caused by their unwillingness to give up part of the profit. Part of the story, You can judge it is lie or not.
your question is exactly the right one,
"will NBC sell TV shows for $4.99 on their own store"? thats the question.
In the end, I think both Apple and NBC will lose.
If the rest of the networks wanna do a NBC, Apple's iTunes Store will fall from grace.
I'm sure the rest like Wal-Mart, Amazon and whoever would luv to pick up the pieces and make these whole video buying experience a mess.
As a consumer, I just lose out on catching the latest shows. I don't think I even wanna buy DVDs anymore. I juz rent or borrow from friends.
If the rest of the networks wanna do a NBC, Apple's iTunes Store will fall from grace.
I'm sure the rest like Wal-Mart, Amazon and whoever would luv to pick up the pieces and make these whole video buying experience a mess.
As a consumer, I just lose out on catching the latest shows. I don't think I even wanna buy DVDs anymore. I juz rent or borrow from friends.
From the same article you linked the network makes < $0.60/show from the traditional advertiser supported model. So why not $0.59/show?
B
ha, because they need more profit than ITMS, at the same time, no higher price to end-users than ITMS. $1.45~$1.98 will be the range. anything higher than $2.00 will be stupid. and NBCs can just kill themselves.
lets do some math
Anyone know what the average number television viewers is (both broadcast and dvr) for some of the popular NBC shows?
I would like to know how much NBC brings back from advertisers and broadcasters on average for each episode. Then I would like to extrapolate what we think they would make if ALL of those viewers purchased the same episode from iTunes at the current $1.99 price point.
Basically the two numbers should be pretty close to each other right? That would be the fair price point right?
What am I missing here? Honest question.
Anyone know what the average number television viewers is (both broadcast and dvr) for some of the popular NBC shows?
I would like to know how much NBC brings back from advertisers and broadcasters on average for each episode. Then I would like to extrapolate what we think they would make if ALL of those viewers purchased the same episode from iTunes at the current $1.99 price point.
Basically the two numbers should be pretty close to each other right? That would be the fair price point right?
What am I missing here? Honest question.
top shows in prime time are normally getting 15~20m viewers. and online store is very small, there is really not much can be compared.
Well I'm sure glad you have the inside track and know that Apple is keeping that information from us. It couldn't possibly be that NBC wanted to double the price which interferes with Apple's $1.99 price scheme. Why couldn't Apple raise the price so that they were receiving the same $.55 that they are now, they're obviously okay with that number as they've been getting it for a year.
Bittorrent for me.
I would prefer to buy. But I won't pay $4.99 and I won't do without. I guess that means I will pay nothing. Who loses in this scenario?
I would prefer to buy. But I won't pay $4.99 and I won't do without. I guess that means I will pay nothing. Who loses in this scenario?
NBCs costs for a DIY store will undoubtedly be higher than through iTMS. I'd guess closer to $1.99 than (current) $1.44.
good point, I don't have the proof, just like you don't
then, what do we do?
we wait and see how much NBC charge on their own online store!
well, sure servers cost extra $$$. just not sure if 100 servers will cost significant amount of $$$ as you might think.. we shall see.
What kills me is NBC, like all other networks, depend on advertisement to pay for their shows. You can watch the episode on the tv at night for free and the show was paid for because of the advertisement. Now, iTunes shows did not include advertisements, BUT, the show was already paid for because of cable etc. so they made money on each show downloaded. I can understand why they'd ask for an increase to increase profit, but when it was turned down why would you just quit the agreement?? I'd keep the agreement going because it was income, especially since it is NBC we are talking about here. NBC is on a downward fall compared to the other networks, it was stupid of them to do that.
I looked all over this thread, and I haven't seen this mentioned yet, but couldn't this also set precedent for other studios that take notice? If Apple were to kowtow, what's to stop other studios from following suit? Then, everyone would start pushing for higher prices, or else.
What percentage does any retailer get for the wares they peddle? My guess is they get enough to turn a profit. Why shouldn't Apple?
What percentage does any retailer get for the wares they peddle? My guess is they get enough to turn a profit. Why shouldn't Apple?
Good riddance i say, even though ive spent 70+ dollars on NBC shows. Ill tape/tivo them, and fast forward through commercials.
dumb dumb dumb.
And MS will NEVER be in my living room, in any shape or form.
don't hit your ass on the way out, #3 network.
dumb dumb dumb.
And MS will NEVER be in my living room, in any shape or form.
don't hit your ass on the way out, #3 network.
I have been thinking about this also, especially since many believe that MS is trying to continue the HD format war so their Live store with HD content can fill the void. NBC (who owns Universal...not Universal Music though) might be under some MS influence with the recent cash windfall from MS and the HD-DVD Forum.
No, I don't have proof, but then again I don't need it as I'm not the one making outrageous claims about why Apple is doing what they're doing.
Yup, you are right. I wasn't sure about the dibs.
But can anyone on this board remember what commercials aired during these episodes?
These pretzels are making me thirsty!
haha, I guess you can comfortably ignore the fact that my claim is response to claims made by others, which has exactly same content as yours.
nothing stops other network of walking away from ITMS except contract, I bet they are watching now, if NBC survive this, they will walk away once their contracts end
Because then everybody will request the price increase and all of a sudden the iTunes store looks less attractive.
If this is a margins issue for Apple, then we have the following.
Apple currently takes .55, which is 27% of the revenue.
27% of the $4.99 = $1.34
Which means that at that %, NBC would want $3.60 per episode.
If it is currently making $1.45 per episode, then Apples claim that they wanted more than double the current wholesale price holds true. According to these figures, its around 2.5x the current price.
So if NBC did want more than double, then these figures are entirely realistic , based on Apple maintaining existing margins.
Yes, but if they can sell 5x as many shows at $0.60 they will make more money than if they just sold one $1.69 or even $1.99.
Profit, or better still revenue per show watched is a poor measure. Total revenue/profit is what counts.
B
Same thing, still fractions of a hundred...
If they sell for $1.69, they're losing money compared to iTMS. That 55 cents covers bandwidth and credit card fees too, you know... Apple really is only getting pennies per download, and I'm pretty sure it's pennies, not dimes. You're talking less than twice the cut to Apple (compared to music) for more than 50 times the data-- bandwidth and storage ain't free...
Not really, your posts started with your claims that Apple was at fault. Most everyone else was responding to the news that NBC was being dropped for the reasons Apple listed in it's press release.
The Office, Scrubs and Heroes (that's NBC in the states right?) for me. Shame - as although downloading from iTunes is a legal grey area for me (being from the UK) I felt it was more honourable than bittorrent or other similar sources. I'm not paying $4.99 for them so I'll have to rethink this a little...hmmm