NBC's Greed Backfires?
Last week, NBC announced that they would not be renewing their contract with Apple to sell their TV shows once the contract ends at the end of the year. Apple quickly responded with "who needs the 2007-8 season any way." (Or words to that effect.)
This move proves that the video makers don't get the market any better than the music industry. NBC wanted to double the wholesale price of their shows to Apple, which would have resulted in $4.99 episode pricing instead of the current $1.99. I suspect that iTunes would sell at least 3 times the number of shows at the lower price point and all those electrons don't really cost NBC or Apple any more in expenses.
I think Apple was right in saying no season is better than a half a season for their customers. They still sell all the other major networks and the result will cost NBC a lot in the short run and even more in the long run. Other sites just don't have the ease of download or the customer base that Apple has.
Read more here.
And NBC's response here.
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