NBC and Apple have officially broken up. The single largest partner for digital video, with more than 1,500 hours of programming making up nearly 40% of iTunes video content, has officially pulled all of its content from the iTunes store.It was big news and leaving everyone with loads of questions; what will happen to Apple now? And is NBC ‘s own distributing channel NBC Direct along with Hulu, where they plan to have everything now, enough for their customer in order to provide them with their favourite episodes? It’s just as when Viacom pulled out from YouTube, presenting video content through its own site. Viacom said that it was able to maintain a high level of interest from users, and increase its own traffic as a result, but these points are still debatable.
The reason for their break up is basically money. NBC wanted to charge as much as $4.99 per episode while Apple wanted to maintain their flat fee of $1.99 per episode. Would Apple be forced to change its price structure now or would they… unveil their new partner?
That’s right just after Universal left them, Apple is closing in on a deal with News Corp’s Twentieth Century Fox for offering new releases and other movie titles on iTunes. The movies should be available early next year. One major factor that may have helped spur this deal along is Apple’s willingness to increase the wholesale price beyond the $14.00-$14.50 that Disney is currently receiving for its movies. There’s no word on Apple changing the price for its consumers.
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