Apple hits back at NBC in iTunes dispute

August 31, 2007

Apple hits back at NBC in iTunes dispute Apple has fired back at NBC in their blossoming war of words by announcing they will not sell any of the episodes for NBC’s shows from the upcoming season.

As reported earlier today, NBC has decided not to renew their contract with Apple to distribute their programming through the computer manufacturer’s digital media store, iTunes.

Apple has now returned fire in this skirmish by announcing that even though the contract expires in December, they consider the termination immediate and will distribute no new episodes from the upcoming fall television season.

According to Apple’s press release, this stems from NBC asking for twice the wholesale price of last season which result in the episodes retailing for $4.99 each as opposed to the usual $1.99.  The episodes from ABC, CBS, Fox, The CW, and more than 50 cable channels will remain at the afore mentioned $1.99.

Eddy Cue, Apple’s vice president of iTunes said “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”, showing that the company is open to more talks with the peacock network.

Last season NBC provided Apple with their top three shows, which accounted for 30% of all television program sales through iTunes.  When added in with the loss of a long-term contract with Universal Music, the iTunes store may be looking a bit bare in the coming year.

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