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NBC Universal Pulling the Plug on iTunes Content

NBC Universal is ending its iTunes support, meaning no more "Heroes," "The Office" or "To Catch a Predator" in the iTunes store after December, when the current contract expires. What makes the rift somewhat serious for Apple is that NBC is iTunes' biggest video supplier, pulling in about 40 percent of downloads. On top of that, it could spur a mini-revolt among other media companies like CBS and News Corp., whose contracts are also coming due.

The issue seems to be the same old, same old: NBC wants to bump prices and complicate the packaging/pricing structure, while Apple ostensibly wants to keep things the way they are: simple.

More than likely, NBC's going to pull a Universal music: no long-term contract, but short-term sales agreements to keep their content up. That way they can still make money while (maybe) maintaining some leverage for negotiation. There's still a few months left, so it's possible they'll come to an agreement, but greed makes for some strong fences. [NYT]

12:53 AM on Fri Aug 31 2007
By Matt Buchanan
11,212 views
94 comments

Comments

  • HUGE mistake

  • Oh, great, so that means I won't be able to download the 9th season of SVU when it comes out? Damn you NBC!!

  • Or maybe they've heard Apple is adding Blu-ray burners to Mac Pros next week? Or maybe someone paid them $150 million to pull out?

    Oh wait MSnbc. UH, what could that mean?

  • HUGE mistake

  • Zune what now?

    Either that, or they're launching their own DRM free service, falling suit with Universal. Perhaps companies are realizing that it's more cost effective in the long run to not bother to fight piracy on some issues. Every DRM out there has been cracked, why spend millions trying to keep it going?

    I know I'm going to get shit about every DRM being cracked, because I'm probably wrong. Has Blue-Ray been cracked yet? I don't know. Point is, Microsoft's DRM has been cracked, Apple's DRM has been cracked. Why fight it on the little stuff, when companies are starting to offer DRM free content?

    I don't know any figures, but it seems that it'd be cheaper to distribute content without DRM.

  • Apple hasn't made as big of a splash in video as they have in music and therefore do not have as much weight to throw around when it comes to licensing content.


  • PS - Everything above is opinion, and in general, I don't know what I'm talking about, so feel free to flame away with any fact I may have mistated. Thank you.

  • Perhaps the real reason NBC Universal is dumping iTunes is because they've been working like crazy to develop they're own system with Intel for the past year or more. This system would keep all NBC content within their control and follow more of a rental system format. None of this is cutting edge or even very noteworthy except I'm a bit surprised they're pulling out right before the fall season without a viable solution in place. Ah but the networks are special, aren't they?

  • When will this idiocy stop? Seriously. Companies need to get over themselves. I understand that everyone's out there to make money for themselves, but these companies need to start caring more about their customers and realize where people want to purchase their content. I know that's idealistic, but still.

    Most of this is scare tactics, so I doubt it matters in the end.

  • Walking away from good money to side with . . . MSZune? NBC and MS are in bed w/ eachother so I'd say there's some bucks exchanging hands somewhere until they realize that they're not selling as much content to all eleven of the Zune owners out there. I see Tommy, and Nancy and Jimmy and Jane . . . oh Magic Mirror, where are all the video sales going?

  • polarimetric: I'm fairly sure that they aren't stopping to sell stuff on iTMS because it sold so well.

    If people wanted to purchase their content on iTMS then they would be doing so and NBC wouldn't been pulling out. So if they are pulling out, that means it's not selling enough to be worth while.

    Having said that, I'm one of those people who buy all my music online these days and I'd do the same for video (both movies and TV shows) if it was available in the area of the world where I live. So the fact that NBC pulls out bums me personally - but that doesn't mean I think NBC is being stupid for doing so. They are not a charity. If it doesn't make sense for them, then they won't do it. It's as simple as that!

  • I really hope that this doesn't affect content from USA Network, SciFi, as they are subsidiaries of NBC Universal. The only shows I buy on iTunes happen to be those from NBC .

  • Those ASSHOLES!, I was planning on getting all my NBC shows from iTunes next year when i am in college because I don't have time for watching TV when its on and I certainly don't have money to get a tivo. Well sorry NBC I love your network, I love universal, but it looks like I am going to have to resort to "Other" methods of getting your content... And if they are going to be on Amazon unbox or another service that uses MS DRM that isnt going to help me as I am on a Mac. So good job NBC I hope you at least start streaming The Office on your site or you are completely alienating the entire Mac consumer base. (Damn this really pisses me off I loved the season pass feature on iTunes and have been working over the summer so that I could subscribe to a bunch of shows this fall season, most of which were on NBC... Looks like they won't be getting my money... too bad).

  • @Kim98:
    That's pretty naive.


  • You mean they're not going to let us pay for broadcast TV anymore?

    The Horror.

  • @Kim98:

    Oh, I know: I'm sure that video sales on the iTMS aren't fantastic. Admittedly, I've pretty much ignored the TV section completely, and I do purchase music from it.

    However, still, I think that the convenience of online video is very real and it's a possibility that, just as online music sales did, that online video sales may rise as people discover the service, and I was glad that so many companies were getting into the iTunes TV show catalog because I considered it adopting a new medium of getting their content to their audience in the most convenient way possible, thusly potentially making a lot more money. I think this is a mistake above all, because if online video gets more popular and NBC is left behind, they're really going to miss the train.

  • In the end everyone gets what they deserve. I download music and video from iTunes because of the convenience. Therefore if it's not on iTunes I don't buy. If you think I'm going to follow you where ever you go, you're wrong. So long NBC Universal, it's been nice, but not that nice.

  • Like the others have said, huge mistake on NBC/Universal's part. Some of the only video I've bought off of iTunes has been their content. I love The Office and Battlestar Galactica and would be sad to see them no longer available on iTS.

    Somehow though, I doubt that they'll want to give up distributing one the largest provider of digital video. It's not really smart to give up the chance to distribute on the most popular player either. DRM and piracy aren't really an excuse since most people (meaning: not those who read tech sites) won't bother trying to deDRM their video.

  • Whew... I thought they were pulling the plug on Heroes! I love that show.

  • People buy TV shows off of iTunes? I don't think I have ever done that and I download all my TV shows off of Bittorrent.

  • Hmm they're loosing Heros and M$ is getting it on the XBLM... The plot.. she is thick.

  • iTunes has videos now? I've been so busy getting my content without DRM i've just stopped checking.

  • Overall, my main biggest reaction was the near heart attack at the words NBC Universal Pulling the Plug.. and a picture of Heroes.

  • *Heroes

  • @luckypictures: then why the hell did you even make a post if you don't really know what you're talking about?

  • Might be moving over to zune, MSNBC.
    sweet...i love heroes, now i don't have to look for torrents any more, i hope.


  • A TV show on iTunes is $2 a pop. A 24-episode season is $48 total, perhaps $4 cheaper if you do the season pass bit. On the flip side, a DVD set at the end of the year is around $45.

    Or in other words, what they're charging now at Target for a set of boxed DVDs is basically what I'd pay on iTunes, with no box and no DVDs. (And I bet Target gets more as a retailer than Apple.)

    With all of that, they want to RAISE prices? To what? Just how much do they think 40+ minutes of entertainment is worth? Especially with a BROADCAST television TV show that most can already get for free?

  • Did I forget to mention that they're idiots?

  • By pulling out of the iTunes store I hope they aren't just going to make it a Zune only offering. There's nothing worse than DRM but crappie DRM like the Zune has. They're going to be WMV instead of MP4s too.

    Just to make sure you know I hate Apple's use of DRM too. But surely don't like the WMV format and Microsoft skipping out on the whole Plays for Sure stuff too. It's just a dick-ish move is all.

  • All I know is, I want to download Battlestar Galactica. I'm never going to subscribe to cable or satellite again, ever. So, Universal can either take my money, or they can not take my money and I get the content anyway. I would rather buy it and give them my money (the iTunes experience is much more convenient for me than hunting for uploaded files), but if they refuse to take it, what else can I do but download it for free.

    Personally I think it's foolish to refuse money from someone eager to give it to you, but hey, no one said these old media dinosaurs were particularly smart. Good thing their execs will die of old age or heart attacks within the next few years.

  • It's easier to go buy the DVD box sets at the store and rip the disks. Then resell it on eBay or Amazon.

  • @bdkennedy1: How in the world is that easier??

  • Other people have said it. I'll say it too, I was going to buy it. Now I'll just get it for free. I hope some Universal execs are reading this.

  • @flashjordan: Long day, not thinking when I post, and not 100% sure of ALL the information I posted. Merely stating that everything I said was not necessarily fact.

  • Good thing there are lots of torrent sites out there.

  • I really hate to say it, but it looks like I have to finally learn how to use the new P2P networks to get my NBC content. For the upcoming season on other networks, I will just buy season passes.

    I am certainly no Apple fanboi, but iTunes is how I get my TV shows. Frankly, if I am going to add extra steps to get tv shows on my computer and iPod, I am going to get my shows for free. If you act like a pain in the ass, I will hold onto my money.

    I'm really sorry to be writing this. I am willing to pay. But I am not willing to get in the middle of some pissing content with media companies who simply don't get it. And I am not going to let some scumbags in Hollywood inconvienence me.

    Universal will learn. So will NBC.

  • Heroes can still be had in HD or Standard def download from Xbox Live Video Marketplace if you own a 360. Much better if you ask me...HD content actually on your TV set is much better than ITMS. Lets hope that MS finally brings some video to the Zune.

    Asside from lack of Audible support, the Zune is really quite nice. The user interface is easier to use than iPod and has very cool animations and menu effects. It gets rid of the antiquated hierarchy that the iPod and other devices display and sort files. You really must try it...you'll be surprised I promise you.

    Oh and ITMS doesn't hold a candle to Zune or WMP11 software. ITMS is buggy as all hell. And anyone that's owned an iPod and is serious with themselves knows how buggy the hardware can be. Random shutdowns, not turning on at times and complete hardware failure are the norm after about a year of use or less for iPods.

    And the worst part about ITMS is that it does not have a subscription based all you can eat service unlike every other major music store. If you are a music lover and don't have a subscription service...you are missing out. Again...put your white brick down and try it.

  • This is very odd.

    In France, TF1 (one of the main TV moguls), has just announced that it will be selling on it's website the episodes of Heroes the NEXT day they are aired in the US (in English with french subtitles). The selling price... you guessed it: 1.99€ (or 2.99€ per episode if you do not sign up to buy all the episodes of the season).
    This will be affective by the end of September!

    So why cut the deal with iTunes? It's (kind of) the same price system.

  • It's amazing the morons we have in the world today. Damn "entitlement" generation. You know, at one time, if you didn't like the way a company runs its business, you would "boycott" them. That means you "abstain" from using that company's products or services. Now days, if these idiots can't get it their way, they just steal it. God forbid your unable watch Heroes. Pathetic!

  • Dude, you guys need to chill. Just go to their website (nbc.com) and watch it. They put several of their shows online the next day, free and legal. Yeah, you might not OWN the video, but you can watch it. I repeat, FREE and LEGAL

  • @Cyrano76: Yeah, you can watch it for free on NBC.com, but the quality really is horrible.

  • I stopped buying video on iTunes after my first and only purchase when I came to the realization that I couldn't do with the video what I could do with the music tracks, ie: free it from its DRM shackles by burning a copy to disk. Bogus. Now, the only video I get from Apple comes from the "free on itunes" page (on the rare occasion there's something worthwhile there...).

  • www.veoh.com

    Sure, the quality is mediocre. But it's OK for on-the-go watching.

    The problem I have with downloading episodes from iTunes is that they're still ridiculously overpriced. For about the same amount of money I pay for an entire season, I can just get the DVD boxed set. So I have to wait half a year. There's plenty of other shows to watch.
    Unless iTunes pricing becomes (a lot) more competitive, there's just no way I'm buying their video content.

  • This seems far more likely to have to do with HULU, the NBC Universal/News Corp online video venture and not just them trying to get more out of their iTunes contract. Maybe watch for a statement from News Corp. soon too that will say they will drop their deal as well. They hav to get people to use HULU and stop getting their stuff from iTunes somehow right?

    My guess is that HULU is planned to exit beta right around January.

  • This is a pissing contest between the head honcho at Universal and the head honcho at Apple... nothing more, nothing less. Egos, pure and simple. Hollywood, I believe, doesn't take kindly to Steve Jobs. Too much power, what with being the majority stockholder of Disney for God's sake.

    Hollywood wants to take Jobs down a few notches. But with the billions of dollars in reserves at Apple and Jobs refusal to lose at something he really wants, this could get very interesting over the next few years.

    Of course, now Jobs shine on a real video iPod will lose some luster if this gets blown out of proportion in the next few days.

  • @ghmlco:

    I bought Heroes on iTunes last year for $45 I buy what I like - after checking it out in "other" ways). The DVD set for Heroes came out this week for $36 - I could have saved $10, but I was supporting the show and my favorite computer company. Well, screw that! If they are going to screw the customer, screw them! See you on the pirate bay!

  • Oh come on. When the hell are these companies going to realize that the days of them determining how and when consumers receive media is over. It's all about what company gives me what I want and how convieient it is for me to access content. I know that they want to make money but they are being completely greedy. There is no packaging involved with online content. No paying for them to be stored in a warehouse. No paying someone to ship the merchandise to stores. They are already making more money from online sales versus in store. And now they want more? Come on.

  • GIZMODO!!! You just displayed the Heroes image with the faces lined up. This picture cries out to have Steve Jobs' face stuck in it. What's up with that? You just light his eyes on fire and caption it, "How do you stop an exploding Apple?" or... or... "Renew the contract, Save the world." Where's the irony? TFSU!

  • @Cyrano76: Not good enough, dude. Some people want to re-watch shows on their own terms, and are willing to PAY for it (showing the degree of cnvenience as a service). Honestly, this is an ass-backward thing to do.