Whether a tree falls to the south or to the north, in the place where it falls, there will it lie

Update: NBC tries to save face by saying Apple is only trying to make money off of their ipods and if you own an ipod you’re a bonafide pirater of digital content. Wow! NBC is sooo smart.
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NBC’s Response

I didn’t want to bury The Launch set list post with another post, but I just had to share this.

Apparently, talks broke down with NBC Universal and Apple regarding pricing for NBC Universal’s tv shows on the iTunes Store with NBC wanting to raise the prices of their shows and Apple wanting to keep prices at the current $1.99. The price increase NBC was requesting would have made NBC’s shows cost $4.99, which, if you do the math, just buying 3-5 shows, you’re getting into a season’s DVD price range.

NBC decided they would not renew the contract at the end of December, which would be in the middle of the season. I guess they were trying to push Apple’s hand hoping that subscribers would create an outcry and force Apple to allow shows at higher prices.

Apple’s Response?

Apple called NBC’s bluff. Apple basically said, ok, since you’re pulling out of the contract, and are going to start pulling shows off of iTunes in the middle of a season, why wait? Let’s just cancel it now. So beginning tomorrow, there will be no more NBC shows on iTunes.

Wow!

As usual, there’s a nicely worded PR Statement from Apple worth reading here. I’ve copy and pasted it below for your viewing pleasure.

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iTunes Store To Stop Selling NBC Television Shows

CUPERTINO, California—August 31, 2007—Apple® today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunes® Store (www.itunes.com). 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.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”

Apple’s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September. NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Press Contacts:

Tom Neumayr
Apple
(408) 974-1972
tneumayr@apple.com

Natalie Kerris
Apple
(408) 974-6877
nat@apple.com

NOTE TO EDITORS: For additional information visit Apple’s PR website, or call Apple’s Media Helpline at (408) 974-2042.

Apple logo, Mac, Mac OS, Macintosh and iTunes are trademarks of Apple. Other company and product names may be trademarks of their respective owners.