Wednesday, July 22, 2009

The Peacock vs. The Apple: NBC Drops Out of iTunes

NBC hit Apple with another big content setback on Thursday, by failing to renew contract with iTunes. NBC Universal, the store's largest provider of paid digital video--making up around 40-percent of downloads--couldn't reach a pricing agreement with the Cupertino company, who has traditionally priced TV episodes at $1.99 a pop. NBC confirmed the move, but both companies refused to issue comments to reporters.

The decision, which also reflected NBC's call for stronger anti-piracy controls, will affect the iTunes store, beginning in December, when the companies' two-year deal lapses. At that point, the nearly 1,500 hours of programming, including popular series such as The Office and Heroes, will be pulled from the store, if a new agreement isn't stuck.

The move--or lack thereof--follows Universal Music's refusal to renew their contract last month. Analysts are predicting that the moves may embolden fellow media companies like CBS and the Discovery Channel to sweeten their deals with Apple.

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