31 August 2007

NBC Will Not Renew iTunes Contract

Like its music division, NBC/Universal is reportedly declining to renew its contract with Apple to sell TV shows on iTunes. I get that movie studios are never satisfied with their cut, but where do they intend to go from here? Apple supposedly makes almost no money from downloads, so it’s unlikely to cede any part of its revenue, and the prices can’t really go up much further before they’re the same price as DVDs. A movie for $9.99 that you can watch within a few minutes of clicking is a good deal, but if it’s the same price as a DVD, all you’re gaining is convenience while losing portability, surround sound, higher definition, special features, subtitles, and alternate languages. And for TV shows, lots of networks are already offering free online viewing supported by ads, so I can’t see people paying even more to download single episodes. Or maybe they’re trying to get Apple to agree to rentals instead of ownership, hoping to snare 100% of their customers by suckering them into bad agreements instead of offering them products they can actually own and enjoy? Hmm…