NBC Not Getting It
NBC Universal is removing its popular video seriess from iTunes in a bid to weaken Apple's dominant position. The entertainment industry has been fighting back by supporting other online services. Stablemate Universal Music Group earlier changed its deal with iTunes from a long-term contract to month-to-month.
NBC Universal is the largest video supplier to Apple with over 30 percent of its video sales from series like "Battlestar Galactica," "The Office" and "Heroes." Apple charges $2 per TV episode and has said that NBC wanted to double its price, which would increase the retail price to $5. Apple refused the increase.
The prevailing media response, and mine, is that NBC's move is foolish and only reinforces the entertainment industry's anti-consumer image. Apple pricing is reasonable and has made a dent, albeit small, in unauthorized downloading and sharing. Pulling content and increasing prices only incents people to return to P2P.
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