Gizmodo

I'm pretty sure the music industry used that same "flexibility" line when they were trying to break Apple out of the $0.99 price point. Right before they caved in, if I remember correctly.

Seriously. Does anyone think flexibility means lower prices? Because there's only one other direction prices can go.

"This is turning into a bad Aaron Sorkin script."

...which won't be sold on iTunes. Zing!

@Dan:
Doubly so, because his show isn't coming back this season.

@SpacePenguinBot: Exactly. Only one direction. I can't imagine Apple cares if they lower prices to promote bundling incentivization. If they RAISE the prices, they have much more flexibility to jerk people around, as most customers will feel repressed from purchasing except when they see those "normal" prices they were used to. I'm better "never asked to double prices" means that they didn't want to do this across the board, but Apple is attempting to work out uniform pricing and not allowing certain shows to be significantly more than others. Meh. Still lame.

Who cares? The only show worth watching on NBC was Heroes. After the lame season finale I don't even care about that now.

@calebc: Actually, I thought the same before I realized BSG was NBC too (and the Office, etc). Also, its so goofy for NBC to lie to people. If they didn't come to an agreement with Apple, their contract would just renew at the same terms.

They did not WANT the same terms, so that's why they made their move. Instead, they call all iPod owners mostly pirates and that Apple (who doesn't allow people to copy FROM an iPod, and who has made the iPhone even MORE nebulous to move content on and off of) isn't doing enough. Then they say current prices (and revenue splits) currently benefit Apple who only want to sell hardware. Duh! What? Is Apple supposed to have some other business model? All iTunes customers scrutinized the price, many said "no thanks" yet many have said, "Ok, its on the high side of fair, but... fine, let's do it." For NBC to want MORE is sheer stupid, considering the is little overlap between someone buying content digitally, and someone who wants the DVD. Most people buying on iTunes would NOT have bought the DVD. If they would, they'll limit their iTunes purchases knowing they will be getting the DVD later.

Sounds more like they wanted to put a popular shows with not so popular shows(or a new show) and you have to buy them for 4.99 because the popular show was only available though this offer..

NBC is correct. Apple tried to make themselves look like the victims again because they couldn't accept that NBC walked away from them. NBC wants to stop the monopoly that Apple wants to keep so dearly.

I wish people who throw the monopoly word around would get a clue. Apple is not a monopoly. iTunes is not a monopoly. Everyone who bought a iPod could have just as easily bought a Zune or Zen or whatever else they wanted. They didn't. Being the most popular is not the definition of being a monopoly, just like 99.99% of all of the songs available on iTunes are also available elsewhere and in other formats.

So are you forced to buy an iPod? No. Is an iPod your only choice? No. Are you forced to use iTunes? No. Is iTunes your only choice for music, TV shows, and movies? No.

Now, is Apple popular enough to have some say in the market? Yes. But the same can be said for Wal-Mart, Target, and Amazon. All who've ALSO used their size to help negotiate better terms with distributors and content providers.

Yeah, I agree. Apple always tries to look like the victim, but if you read through it they look like the "terrorists". That's one reason why I never bought an Apple product.

I can see some of these other stores (Amazon MP3, Zune/XBOX 360, Wal-Mart) will be gaining in popularity soon.

@LoopTrack: Apple looks like terrorists? Talk about flamebait. That's got to be one of the stupidest comments I've ever read. Care to explain your position there?

Let's take a closer look at NBC's claims. They want Apple to improve iTunes security because studies have shown that a lot of iPod content is pirated and they want pricing flexibility.

iTunes content is already protect by DRM and Apple's video DRM prevents users from burning DVDs. Sure, FairPlay has been hacked from time to time (which Apple quickly takes steps to correct) but this is an ongoing problem of the entire industry. Has NBC decided to stop selling DVDs because the DRM has been compromised for years?

Or is NBC's concern that the iPod isn't a totally DRM locked down system and is capable of being used to play content of unknown origin? Is this NBC's way of telling Apple that it needs to emulate Microsoft's Vista, an OS so hobbled by the demands of content providers that any sane user immediately upgrades his computer to WinXP?

Pricing flexibility is obviously doublespeak for higher prices on popular shows. Apple might be exaggerating with its claim that NBC wanted to hike all its shows to $5 but there seems little reason to doubt there is some truth in the statement.

So to recap in plain-speak: NBC has called its customers pirates, wants to raise prices, and hobble the iPod, making it less usable and flexible. Thanks. NBC execs obviously feel that with the introduction of Hula this is a good time to attempt muscling Apple. Just a few problems: Hula will force us to watch content on our computers with commercials of some kind while an iTunes purchase can be played on my HDTV via the iPod or AppleTV. Within hours after broadcast almost any show is available via a torrents stream which can be played on my TV without commercials.

I think its time to say Hula No! to NBC.

Sorry, NBC, but nothing is more flexible than buying 1 show at $1.99. Bundling 2 or 3 shows at $4.99 (the one you want and one or two you don't) isn't flexibility, it's stupidity.

This is Six Sigma voodoo run horribly amuck. IMO, GE needs to divest the NBC division.

Yeah, that was some flamebait. I'm sure some people are fearful (terror) of Apple's hold on the download industry though. I'm guessing some of the content providers are and they're hoping for other "real" choices.

there are other choices out there. unfortunately none of them have made it easier for mainstream consumers. instead of complaining about apple's "monopoly" on media, maybe someone should come up with a better solution. looks like apple did when they introduced itunes/ipod while other companies were busy suing people and debating policies. hate something, change something.

According to Wikipedia, A monopoly (from the Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.

I don't see based on this definition that Apple has a monopoly on the digital music reseller market.

I love me some Sorkin.

*John enters his office, Apple Headquarters*
"Hi, John, I'm Bobby Michaels from NBC, thanks for this"
*John is surprised, did not expect a visitor*
"Sure thing. ... What's this?"
"I asked to meet with you over pricing our shows on iTunes"
"You did?"
"I spoke with your secretary. She didn't tell you?"
"I don't have a secretary."
"You don't?"
"Not any more. JANIE!!"
*JANIE appears*
JANIE: "John?"
JOHN: "Who's this?
"Mr. Michaels from NBC"
"I know that..."
" -- Then why ask?"
"Why's he here?"
"Because he made an appointment"
"Just anyone can make an appointment now?"
"Yeah, John, and my mother is at 3 to debrief us on her newest recipe for cranberry-raisin wheat cookies -- he's a customer John"
"-- Leave."
"And Gizmodo at 4 to ask for more photos of the iPod Touch"
"LEAVE!"
*JANIE* leaves
BOBBY: "How about I get down to it. I need more flexible pricing"
JOHN: "No."
"'No', what?"
"No, as in 'No'."
"You're not going to give a reason?"
"I could give many reasons."
"You can't do anything at all with out a lead artist's mock up of the altered product, can you?"
*John looks defeated, hangs his head*
"No. Seriously: I quit."