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Earlier this month, the New
York Times reported that NBC Universal notified Apple about its
intentions to pull their TV shows from iTunes Store in December.
According to the report, NBC Universal invoked its disagreements with
Apple over the pricing scheme and DRM policies. Although Apple
officials declined to comment directly the New York Times story, the
company released press statement which announced that will not be
selling NBC television shows for the upcoming television season.
Apparently,
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. NBC Universal
reacted to Apple’s statement, by saying that the problem wasn’t the
price, as the iTunes’ owner implied.
NBC has thus found another
solution to reap some profits off downloading of its TV shows. The
company released yesterday afternoon a statement announcing NBC Direct,
an ad-supported free service that will allow users to download
full-length episodes of NBC shows straight to their desktops starting
in October.
The shows will be playable, at first, only on
Windows PCs as the company has yet to develop solutions for Macs and
iPods. Users will be able to download the shows and watch them the week
after they air, after which their license will expire. The actual
distribution of the high-resolution programs may be made available via
a closed peer-to-peer network of some sort.
NBC
explained that is only the first step as the company intends to provide
further business models in 2008, including download-to-own, rental and
subscription.
"With the creation of this new service, we
are acknowledging that now, more than ever, viewers want to be in
control of how, when and where they consumer their favorite
entertainment," said Vivi Zigler, executive VP of NBC Digital
Entertainment. "Not only does this feature give them more control, but
it also gives them a higher quality video experience."
Heroes,
The Office, Life, Bionic Woman, 30 Rock, Friday Night Lights, Late
Night with Conan O'Brien and The Tonight Show with Jay Leno will be the
first shows to be available through NBC Direct.
Just days after
its dispute over TV shows' pricing on iTunes, NBC Universal has left
the iTunes store for good and announced a new partnership with Amazon
Unbox, none other than iTunes’ biggest rival. Their shows are also
available on Unbox -- for a price, but ad-free.
"With the
addition of NBC Universal TV content to Amazon Unbox, fans now have the
ultimate convenience for enjoying their favorite shows whenever or
wherever they want," said Jean-Briac Perrette, President, NBC Universal
Digital Distribution, in early September. "This further expands our
longstanding relationship to bring a robust content offering to the
marketplace in a variety of ways that will benefit the consumer and, at
the same time, protects our content."
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