NBC To Drop iTunes

    August 31, 2007

NBC Universal is ending its agreement with Apple to sell digital downloads of it’s television shows on iTunes.

According to The New York Times, NBC and Apple were not able to agree on pricing and DRM.

NBC also wanted to bundle more content together such as a television episode with a movie.

There is still a chance some sort of an agreement could be worked out, as the contract does not expire until December.

That is unlikely, though as NBC probably wants to put its content on the recently named, but yet to launch Hulu, a joint venture with News Corp.

The move by NBC to end its relationship with Apple is seen as risky as its content accounted for 40 percent of the downloads on iTunes.

NBC is the number one provider of digital videos for iTunes.

NBC is taking the gamble that it will be able to bring the iTunes audience to its Hulu video portal.

Over at engadget they gave this amusing take on how the negations between Apple and NBC went.

NBC: Ok. So. We’d like to re-negotiate our contract — top priority is, well, basically we want more money.

Apple: No.

NBC: No what? No re-negotiation? Or no more money?

Apple: No.

NBC: Why don’t you guys just charge more money for our shows?

That’s fine by us.

Apple: Are you new around here?