NBC kicked out of iTunes after bid to jack up prices
In a shock move, Apple boots the Universal owned NBC from the iTunes music store for wanting to charge more than double per episode for its TV shows. Piracy rises.
Jeremy Horwitz at iLounge.com has penned a great open letter to NBC about their latest announcement that they'll be withdrawing their TV shows from the iTunes music store. It's worth a read.
After the letter was posted, Apple officially released a press release announcing that the rumors about NBCs withdrawal from iTunes was true:
Apple today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunes Store. The move follows NBC’s decision to not renew its agreement with iTunes after 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. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
I know that this discussion is a moot point here in Australia as we still can't download anything but music and music videos legally, but it's a big deal in the US, and comes hot on the heels of Universal's idiotic decision not to sell DRM-free music through iTunes.
How can any executive of any large media company seriously believe that a) raising prices of digital media and increasing copy protection is a good idea and b) that removing content from the world's leading digital media marketplace is good for business?
Seriously, I actually believe that the CEOs of these businesses are computer illiterate - I wouldn't be surprised if they have PAs that read and respond to email for them.
Some junior geek in these organisations needs to get the executives in a room, hook up a PC to a projector, and walk them through downloading content via any number of the P2P networks that exist today. They'd be shocked at how easily and quickly it can be accomplished.
It's no wonder that piracy rates are still on the rise.