It is not true that NBC refused to renew the contract because Apple did not accept an increase in costs per single episode. Rather, NBC leaves because Apple pursues a strategy that benefits only the hardware it sells and not the content suppliers.
The same network launched the accusation in a written declaration distributed to the press and published on its website. The stance comes as a predictable response to the press release that, before NBC, Apple had published on its website and in which the manager of iTunes, Eddie Cue, accused precisely the ex partner of having pressed too much the accelerator on the costs of show demanding more than double the price.
'We never asked to double the price of the single shows – said Cory Shields, spokesman for NBC, repeating some of the information released by the New York Times – the negotiations were centered on the flexibility of the final sale price, including the possibility of marketing multiple episodes together'. This would be the option that Apple refused, according to NBC, and there for a reason: 'the iTunes service – says Shiedl – designed to increase sales of Apple's hardware devices at the expense of those who create the contents that make the purchase interesting of these devices. In addition to this – Shield says – we asked Apple to intervene to create systems to protect content from piracy as I know that the average iPod contains a lot of illegally downloaded material "
The differences between NBC and Apple do not end on the reasons why the contract was terminated but go even further touching the times when the same content will stop being available on iTunes. According to Apple, there will be no new series of those that start this fall, Shield instead reiterates that all new series will be on sale on iTunes until the moment the contract currently in progress ceases to be valid, therefore in early December. The issue is not insignificant and originates from the fact that those who buy the first episodes of the series on iTunes once the Apple contract with NBC is closed will be forced to move to other stores to continue following the shows; how to say that Apple would end up acting as an incubator for some other competitive store, which is obviously not acceptable to the top of the Apple. On his side, for NBC he has a written agreement that he could challenge forcing Apple to go down to more mild advice or perhaps even to find that agreement that Shield himself hopes can still be reached.
Meanwhile, some analysts who are following the story, such as James McQuivey of Forrester Research, judge the exit from the scene of iTunes by NBC as a problem more for Apple than for the TV network. If in fact NBC loses an important showcase just as true as the market digital video still evolving and rather small; the lost turnover will be useful if, says Forrester, to serve content providers to undermine Apple's ability to dominate this sector and impose its will as it does in the field of digital music.
In addition to this, the NBC's exit from the scene could serve other content providers to put pressure on Apple, asking that Apple apply a price flexibility that until now has never wanted to introduce and which represents the element of greatest friction. between the leaders of Cupertino and its partners, including those in the music sector.