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.