In the News :: NBC Universal Drops iTunes

NBC Universal has a new attitude ... Unhappy with the way Apple sells its content ... NBC Universal said on Friday it would not be renewing its contract with the internet powerhouse ... The news is a big blow to the online retailer ... particularly because NBC Universal-produced series ... as well as related sporting events, news specials, and entertainment offerings ... account for approximately 40% of its downloads ...

iTunes however ... is taking this in stride ... In retaliation to NBC Universal's announcement ... Apple will discontinue selling NBC programming prior to the start of the 2007-2008 television season ...

Talk about bad timing for NBC Universal ... NBC right now is in fourth place among the major networks ... and I am sure they were hoping for a major internet presence to aide in promoting its new shows and returning series ...

Eddy Cue, Apple's vice president of iTunes: "We are disappointed to see NBC leave iTunes, because we would not agree to their dramatic price increase."

The price increase Mr. Cue mentions above would have doubled the current price of an iTunes download from $1.99 an episode to $4.99 ... NBC Universal also wanted to bundle shows together at different price ranges ...

Apple argued that a varying price scheme would cause confusion to their customers and prohibit more people from using the store ...

The two sides are said to still be in talks ... but NBC Universal wanted to withdraw from iTunes so that their current contract would not automatically renew ...

~Papi Chulo~