NBC has reportedly pulled the plug on its participation in Apple's iTunes video download service. The broadcast giant is apparently behind 40% of the television content available to US iTunes users, including popular shows like The Office and BattleStar Galactica. However, come December, when its current contract expires, NBC's catalog will disappear from iTunes.

Apple's unwillingness to accept demands for stricter DRM and flexible pricing are reportedly behind the NBC's decision to back out of iTunes. With online music slowly shifting away from DRM, it's hard to fault Apple for denying NBC's request for more restrictive rights management. However, Apple's staunch opposal to flexible pricing for digital downloads may be harder for iTunes users to get behind.

Apple has since commented on the decision in a press statement: "The move follows NBC's decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode."

Update: (Sept 4) What a bizarre story this whole 'NBC vs iTunes' thing has been. First, NBC drops iTunes. Apple fires back saying they wont sell NBC shows. This week, NBC says the shows will stay...for the time being.