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NBC Universal Drops ITunes Downloads After Apple Refuses To Raise Prices
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NBC Universal has decided not to renew its contract with Apple. Come December, popular NBC shows like Battlestar Galactica and The Office will no longer be available via the iTunes Store. NBC is currently the number one supplier of digital videos to the iTunes Store, accounting for more than 40 percent of downloads.
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The NBC announcement follows an earlier decision by Universal music to also shun the iTunes Store when it made the move to DRM-free music sales. According to The New York Times, NBC is unhappy with the iTunes price structure and wants to offer bundled deals and increase prices, i.e. buy a movie you want and get a free TV show you don’t care about. For some reason, NBC believes bundles are what consumers really want.
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Universal and Apple still have 90 days to work out their differences, but with the upcoming release of Hulu, NBC Universal's own stab at online television (in partnership with Fox) it seems unlikely that NBC will change its mind.
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Apple has come out swinging with a press release that says the deal between the companies fell through 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.
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ABC, CBS, FOX and and some 50 cable networks will continue to offer downloads through iTunes at $1.99 per episode.