NBC Universal Drops iTunes

An anonymous reader writes "NBC Universal has cancelled its iTunes contract and will withdraw the television shows it currently offers through the service in December, when the current contract expires. This is a huge blow for the service, as NBC is the controlling interest in Apple customer-friendly intellectual properties like The Office, Battlestar Galactica, My Name is Earl and Heroes. From the article: 'The decision to withdraw the content follows disagreements between the two firms. Apple is thought to have rejected NBC's demands for more restrictive DRM and the introduction of flexible pricing. Apple was informed of NBC Universal's decision late last night. The report states that neither Apple nor NBC Universal would comment on the matter, but said they continue to talk, "free of acrimony".'" Hey NBC: I have chosen not to have cable, but want to pay you for Heroes. Guess what my only alternative will be if you pull it from iTunes?

Comments

Re:Your only alternative?

[gozar]

Sorry NBC... I'm too far away from your transmission tower. My suburban HOA won't allow for an antenna that can tune in your signal well enough.

They can't do that:

The rule (47 C.F.R. Section 1.4000) has been in effect since October 1996, and it prohibits restrictions that impair the installation, maintenance or use of antennas used to receive video programming. The rule applies to video antennas including direct-to-home satellite dishes that are less than one meter (39.37") in diameter (or of any size in Alaska), TV antennas, and wireless cable antennas. The rule prohibits most restrictions that: (1) unreasonably delay or prevent installation, maintenance or use; (2) unreasonably increase the cost of installation, maintenance or use; or (3) preclude reception of an acceptable quality signal.

Accuracy

[samkass]

I know I'm not new here, but I'd just like to say that the article is self-contradictory. NBC is not pulling anything off of iTunes for months at the earliest, and contract negotiations to keep them on the site continue.

In other words, this article can be summarized as "NBC, looking for some leverage in ongoing negotiations with Apple over iTunes, has called reporters to float the idea of pulling out of iTunes altogether."

Re:Your only alternative?

[amper]

Here's a nice PDF from Uncle Charlie:

http://www.fcc.gov/cgb/consumerfacts/consumerdish. pdf

Re:Your only alternative?

[kidgenius]

No, they can't. They may try, but they are prohibited under Federal Law from doing that. I think that Federal Law trumps some stupid little HOA bylaws. I thankfully have an understanding HOA. They know this, and when I went to put up a satellite dish, they told me where they would like it installed so as to be as unobtrusive as possible. But, they knew that if reception could not be achieved from that spot that they would have to deal with it. Fortunately, it worked just fine where they wanted it.

Retail price would increase to $4.99 per episode

[shmlco]

"This really upsets me that they would do this to their paying customers"

According to Ars, the issue is that they want you to pay more. A LOT more. To quote, "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."

So how does $5 a pop sound? At that rate, a typical series would cost over $100 purchased digitally, as opposed to buying the DVDs for $30-$50.

One thing's for sure, if hulu has this kind of idiotic pricing structure, then it's just SURE to be a success...