More NBC vs. Apple Fun...
October 29, 2007

The fun between Apple and NBC continued to day at a Syracyse University benefit. NBC Universal Chief Jeff Zucker, threw a few more punches at Apple, stating that NBC Universal has ONLY made $15 million of its iTunes deal with Apple. He continued on explaining how Apple has made millions of iPod sales 'backed by our content'. NBC was specifically looking for a piece of the Apple Hardware sales during their contract negotiations.
The NBC Chief explained that they proposed a $2.99 / TV Show price point for 1 show to test if the market was open to a flexible pricing schedule. Sticking with their set price points Apple immediately had declined. NBC was the largest contributor to the iTunes TV Show directory, and consistently featured best selling TV Shows, week-in, week-out. The studio counted for 4 out of 10 video sold through iTunes.
The most laughable statement Zuker made was saying that “Apple has destroyed the music business. If we don’t take control on the video side, they’ll do the same”. iTunes has been one of the few bright spots in downloadable music, giving consumers an easy alternative to file sharing systems. At the very least, Apple has saved the record industry millions each year, and made millions for them as well.

All of these harsh words thrown at Apple comes when NBC Universal is preparing to launch their very own video distribution servers
Hulu.com. Still in the early beta stages, it appears it will host shows such as The Office, Bionic Women, House, Bones, Arrested Development, Miami Vice and content from E!, SciFi, and USA networks. From the screenshots and description it appears to be a flash-like browser that allows for emailing and sharing of videos. The Office episode it has an example was slow to load, and extremely choppy. We say, good luck with that!
Apple has not commented on these latest attacks. We will continue to monitor the NBC fun, and keep you updated on Hulu when its ready for prime-time.
Labels: Hulu, iTunes Store, NBC, TV Shows
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