NBCU blows out iTunes TV downloads deal

31 08 2007

NBC Universal, the biggest supplier of TV shows to iTunes, will not be renewing its two-year deal offering downloads via Apple’s digital entertainment storefront when it comes to an end in December, The New York Times reports. In a tit-for-tat response, Apple then announced that it would cease offering NBC TV shows from September.

While both companies declined to discuss the exact reasons behind the decision, it’s believed that NBCU had grown increasingly uncomfortable with Apple’s rigid pricing model, which offers just two price points for download-to-own video titles: US $1.99 for TV shows and $9.99 for movies.

NBCU’s 1,500-hour catalogue accounts for as much as 40% of TV show downloads via iTunes, including titles such as The Office and Heroes which play particularly well to online audiences.

Proving that Apple is mostly expert when it comes to managing ‘bad’ news (something TiVo also excels at), its revelation that a new generation iPod is on the way more than offset the blow, sending its shares up 6% on a day’s trading.

In related news, NBC Digital Entertainment yesterday announced that it will stream free episodes of Late Night With Conan O’Brien, when the series returns for its new season on 13 September.

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