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NBC Wanted to "Experiment" with $2.99 TV Show Pricepoint on iTunes, Cut of Apple Hardware Sales

Illustration for article titled NBC Wanted to Experiment with $2.99 TV Show Pricepoint on iTunes, Cut of Apple Hardware Sales

Nearly two months after the fizzle out between NBC Universal and Apple during contract negotiations, NBC U CEO Jeff Zucker spills what some of the contested terms were. Most surprising is that NBC asked for a cut of hardware sales. Not the fact that they wanted a cut, but that they actually asked for it—they'd have more luck asking the devil himself to reverse whatever deal Steve inked with him. (Though handing content providers a slice isn't unprecedented.) Also, that pricing "flexibility" NBC pissed and moaned so loudly about was what we all expected: ""We wanted to take one show, it didn't matter which one it was, and experiment and sell it for $2.99." So in short, it was all about money.

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"We don't want to replace the dollars we were making in the analog world with pennies on the digital side." Given that NBC apparently only netted $15 million in the last year of its deal with Apple despite accounting for 30-40 percent of video content sold (depending on whether you ask NBC or Apple), all the other contract sniggles aside, it's no wonder they bolted for Amazon—who probably ponied up a sweeter revenue sharing deal—and Hulu, where they'll have a sizable chunk of ad revenue. [Variety, Thanks John]

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DISCUSSION

Content has no value anymore; something NBC and the other big media companies must learn if they are to survive. Too much content is available for free, either legally, supported by ads, or illegally, supported by the free and open nature of the internet.

Consumers want the hardware; ipod sales have proven that. Consumers want the the content for their hardware, and they can get it whether NBC collects $2 through iTunes, or from some internet software.