9/05/07

NBC flips the dial with Apple and iTunes

The iTunes store is losing one of its key sources of video content: NBC. The network supplied iTunes with three of its 10 best selling TV shows last season and accounted for 30% of TV show sales.

Bill Briggs , Senior Editor

Apple Inc.’s iTunes store is losing one of its key sources of video content: NBC.

On Aug. 31, Apple, No. 15 in the Internet Retailer Top 500 Guide, announced that NBC would not renew its contract because of pricing issues. Apple says NBC wanted to charge $4.99 per episode for any of its content available on iTunes.com, up from a previous price of $1.99 per episode.

Apple’s agreement with NBC ends in December. Since NBC would withdraw its shows in the middle of the television season, Apple decided to not offer NBC TV shows for any of the upcoming television season beginning in September, the company says. NBC supplied iTunes with three of its 10 best-selling TV shows last season, accounting for 30% of iTunes TV show sales, Apple says.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” says Apple’s vice president of iTunes Eddy Cue.

As a digital download store, iTunes has a catalog of more than 5 million songs, 550 television shows and 500 movies.

NBC Universal announced yesterday that its TV content is now available on Amazon Unbox, Amazon.com’s digital video download service.

Topics:

Digital audio, ITunes, ITunes Store, NBC, Rockefeller Center

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