Apple Gnaws Own Leg Off
As we reported early, Apple and NBC Universal have decided to part ways over the pricing of TV shows. The bottom line is that ABC, CBS, and Fox have all agreed to the current $1.99 per show price, but NBC wanted to charge $4.99 per show.
After NBC announced that they wouldn't renew their agreement with Apple, Apple has apparently decided to take things to the next level and not air any new NBC content next television over their iTunes service. The decision was made, in part, because the contract between NBC and Apple ends mid-season.
So how much is this going to hurt Apple? It looks like it could have a major impact:
“According to Apple's own numbers, NBC Universal TV shows took three of the top ten slots for best selling TV shows on iTunes last season and accounted for 30 percent of all TV show sales.”
Do you think Apple and NBC Universal could have found an acceptable middle ground?