Apple And NBC War Of The Words
August 31, 2007 by Douglas A. McIntyreApple (AAPL) claims that it kicked NBC’s programming off of its iTune service because NBC would not agree to pricing. NBC claims that: "We never asked to double the wholesale price for our TV shows. In fact, our negotiations were centered on our request for flexibility in wholesale pricing, including the ability to package shows together in ways that could make our content even more attractive for consumers," said Cory Shields, executive vice president of communications for NBC Universal, in a statement.
It hardly matters. What does is that the fighting between AAPL and its content providers has broken into open and public warfare. NBC contributed over 30% of the video programming on iTunes.
The situation also opens the door for other digital download businesses to offer video and music content owners the deals that they want. And, why shouldn’t they? Nokia (NOK), Amazon (AMZN) have nothing to lose by taking the business on terms that get them all the content they want.
Apple has all leverage, all the power. And, they are acting that way.
It is going to cost them big time.
Douglas A. McIntyre
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