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Apple Says No to NBC $4.99 Per Episode Deal, Drops NBC from iTunes

By Eric Southworth on Sep 1st, 2007 in Tech | Add story link to StumbleUpon

apple-says-no-to-nbc-499-per-episode-deal-drops-nbc-from-itunes.jpgApple said this week that it will stop selling NBC TV shows for the upcoming television season on its online iTunes Store.

When Apple contested NBC’s decision to more than double the wholesale price for each episode, NBC decided not to renew its agreement with iTunes. The agreement renewal would have resulted in an increase from its current retail price tag of $1.99 to $4.99 per episode, Apple said.

Meanwhile, ABC, CBS, FOX and CW, along with more than 50 cable networks, have already signed up to sell their upcoming season TV shows on iTunes at $1.99 per episode.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes.

“We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.” Cue added.

With Apple’s refusal to renew its agreement with NBC under new pricing model, the U.S. TV network planned to withdraw its shows in the middle of the television season from iTunes beginning in September. While Apple has decided to not offer NBC TV shows for the upcoming television season.

NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.

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