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NBC cancels iTunes contract

Ryan Block, @ryan
08.31.07
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Ouch. Another in a long line of disagreements with Apple about the pricing of content on iTunes, another somewhat unexpected blow to the internet's largest digital media etailer. NBC Universal, iTunes's number one seller, apparently backed out of renewing its contract with Apple after failing to get Cupertino to come around to its point of view on pricing, bundling content together, and -- get this -- more restrictive DRM. We weren't present for the discussions, but here's how we expect it went:

NBC: Ok. So. We'd like to re-negotiate our contract -- top priority is, well, basically we want more money.
Apple: No.
NBC: No what? No re-negotiation? Or no more money?
Apple: No.
NBC: Why don't you guys just charge more money for our shows? That's fine by us.
Apple: Are you new around here?

We don't yet know if NBC has in place the same kind of at-will sales agreement that Universal has, but apparently sales will continue through December. Then we guess everyone jumps ship for NewCo, er, what's it called now? Hulu? Whatever.

[Thanks, LordFarkward]

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