NBC Universal back on iTunes Store: who caved?

Stephen Withers
Wednesday, 10 September 2008 04:53

Opinion and Analysis

New NBC Universal TV shows are back in the iTunes Store after a one year absence. The question is did NBC Universal give in to Apple's one price fits all policy or did it get the pricing flexibility it wanted?

This time last year, NBC Universal decided against renewing its contract with Apple to sell its TV shows through the iTunes Store, and Apple's response was to immediately freeze out any new shows offered by the company.

Apple claimed NBC Universal asked for a huge increase in the wholesale price of episodes, which would have taken the retail price from $US1.99 to $US4.99.

NBC Universal denied that, saying it merely sought "flexibility in wholesale pricing" including the ability to offer packages of shows. That position was confirmed when the company started selling its shows through Amazon's Unbox service at the same per-episode price that the iTunes store charged, but at more generous season-pass rates.

12 months later, what's happened?

NBC Universal is back in the iTunes Store, with new content going for the standard $US1.99 per episode, or $US2.99 for the high-def versions.

Recent shows include Heroes, The Office, Battlestar Galactica and 30 Rock, while new season shows including Knight Rider, My Own Worst Enemy and Kath & Kim (how do you say "look at moi!" in American?) soon to make their appearance on the store.

NBC Universal will offer one free episode ftom each of its top series.

So far, it looks like Apple got its way, and NBC Universal came crawling back. Page two explains why I think NBC Universal got the deal it wanted - and this time the customer benefits.