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Report shows Apple needs NBC back, like yesterday
A report issued by Forrester Research suggests that contrary to conventional wisdom (or at least the comments here at TUAW), Apple is the loser in their feud with NBC-Universal. The on-going fight, which reached fruition last week, as all all NBC-Universal content was removed from iTunes, hurts Apple more than it hurts NBC. James McQuivey, an analyst for Forrest Research, urges Apple to make-up with NBC, otherwise they risk losing their spot as a major source in the distribution of online broadcast content. Why? Because although iTunes dominates the world of digital music sales, the same cannot be said for iTunes video downloads.According to the report, which was quoted by CNET, Apple relies on NBC to deliver 30% of their video download sales. This is in line with the 40% figure claimed by NBC in October (I say we split the difference at 35 or call it a third). Furthermore, a Forrester study revealed that only 19% of users buy video content (either TV shows or full length movies) from iTunes and of that 19%, the average amount spent on videos is $30. Meanwhile, competing pay services like Amazon Unbox and the free offerings provided by the networks own websites and through services like the Fox and NBC collaboration Hulu.com make paying for an iTunes download, just so you can watch it on an iPod or Apple TV, less inviting or appealing to users.
