That comment about the writer's strike would make sense if this were a recent decision by NBC. It's not. They decided to do this quite some time ago, well before the writers decided to strike.
In point of fact, it has little to do with NBC per se. Universal Music tried to renegotiate their contract with Apple to allow for them to charge more for their more popular singles. Apple refused to budge. Vivendi, which owns both Universal Music and NBC Universal, in turn has decided to use their own brand of hardball tactics: they're going to do what they can to crush the iTunes near-monopoly by withholding NBC Universal content. They might have removed Universal Music content, but as has been pointed out numerous times, iTunes is now (IIRC) the 3rd largest music retailer in the U.S. - Universal isn't about the slice their own throat. On the other hand, NBC Universal claims that they have made a mere pittance ($15 million) from their content on iTunes. So they're not losing nearly as much, while, in Vivendi's mind, potentially causing damage to Apple.
Long and convoluted, perhaps. But it never had anything to do with the writer's strike. Vivendi, along with many of the other media companies, want to charge whatever they want for popular content. Apple has insisted on flat pricing. So far, Apple has been able to hold their line. This is an effort on Vivendi's part to crush them.
Reader Comments (Page 1 of 1)
CapnVan @ Dec 3rd 2007 1:28AM
@DrummerBoy:
That comment about the writer's strike would make sense if this were a recent decision by NBC. It's not. They decided to do this quite some time ago, well before the writers decided to strike.
In point of fact, it has little to do with NBC per se. Universal Music tried to renegotiate their contract with Apple to allow for them to charge more for their more popular singles. Apple refused to budge. Vivendi, which owns both Universal Music and NBC Universal, in turn has decided to use their own brand of hardball tactics: they're going to do what they can to crush the iTunes near-monopoly by withholding NBC Universal content. They might have removed Universal Music content, but as has been pointed out numerous times, iTunes is now (IIRC) the 3rd largest music retailer in the U.S. - Universal isn't about the slice their own throat. On the other hand, NBC Universal claims that they have made a mere pittance ($15 million) from their content on iTunes. So they're not losing nearly as much, while, in Vivendi's mind, potentially causing damage to Apple.
Long and convoluted, perhaps. But it never had anything to do with the writer's strike. Vivendi, along with many of the other media companies, want to charge whatever they want for popular content. Apple has insisted on flat pricing. So far, Apple has been able to hold their line. This is an effort on Vivendi's part to crush them.