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NBC's Zucker hints at return to iTunes?
After a very public cat-fight resulting in the discontinuation of NBC content on iTunes, the relationship between NBC and Apple seems to be on the mend. Perhaps you recall NBC Universal's CEO, Jeff Zucker, saying that Steve Jobs and iTunes had "destroyed the music business." This in retaliation to Apple's damning press release in which it chided NBC for wanting to more than double the retail price for its per episode downloads, something NBC flatly denied. This morning, the Financial Times is reporting on a kinder and gentler kinship between the media giants. According to the FT, Zucker says, "We've said all along that we admire Apple, that we want to be in business with Apple." He then unexpectedly adds, "We're great fans of Steve Jobs." No telling what has caused the turnabout. Perhaps the writers strike gave both parties time to reflect on their mounting lost revenue. Or maybe it's residual goodwill on the heels of Universal inking an iTunes rental deal. Whatever the case, it will be good to see NBC's content return to iTunes whenever the strike might end.Update: The love-in continues over at BusinessWeek where Jobs comments on the NBC Universal situation saying, "We'll put it back together on the TV thing. Everybody lost. But NBC is a great company, and Apple is a great company." Get a room you two. [Thanks, Bart L. and MJ420]
NBC Universal's CES 2008 booth tour
When we heard NBC would be recording NBC Nightly news on the show floor of CES, we wanted to stop by and learn what it takes to produce a remote HD newscast, but unfortunately the PR team never got back to us about access, so instead we took a few pics -- including pictures of Brian Williams preparing for the show. In addition, they had kiosks setup, and using a free 2GB USB memory stick you could download NBC Universal content -- locked down with WM DRM of course.%Gallery-13351%
NBC exec slams iTunes revenues/business model
The ongoing NBC Universal v. iTunes slap-fight has just become well, more slap happy. As reported in Daily Variety, Jeff Zucker (the President and CEO of NBC Universal), revealed some of the details of the NBC/iTunes impasse in an interview with the New Yorker's Ken Auletta. Some of the highlights: In the last year, NBC U reported only $15 million in revenue from the deal with iTunes NBC U programming accounted for 40% of iTunes video sales NBC did want to experiment with higher pricing, albeit for only one show and on an experimental basis, but Apple refused. NBC U also wanted a cut of Apple's hardware sales (presumably iPods) to supplement revenues from the iTunes Music Store. I'm sure it was just a coincidence that these remarks were given on the day of the launch of the Hulu.com beta, NBC's attempt to answer iTunes. Issues of profit sharing and price flexibility aside (I'll refrain from sharing my own opinions regarding those issues), the conclusion I find most interesting in this saga is that Zucker's figures (along with figures Apple has reported in the past) back up what many analysts have been saying all along: demand for television content via iTunes is pretty underwhelming. Think about it, NBC says they made only $15 million in revenue off of media sold via iTunes last year; even in the softening TV on DVD market (where the cost per episode is on average, the same, for the consumer), that's peanuts compared to retail revenues of those same shows. Additionally, if NBC represents 40% of all iTunes video sales, and assuming that the other media companies have a similar revenue split agreement with Apple, that would put total revenues by the content providers for the video/TV sector of the iTMS at approximately $38 million. Strictly looking at the situation in those terms, I can understand why media companies might be reticent to offer up their programming on iTunes. I mean, really, what's the point? If the content is going to be essentially given away, web-based services like Hulu make a lot more sense.
CE-Oh no he didn't! Part XLVII: NBC Universal chief says Apple "destroyed" music pricing
NBC Universal CEO Jeff Zucker clearly did not get enough raisins in his cereal this morning, because dude was not holding anything back during that speech he gave at Syracuse's Newhouse School of Communications -- in addition to saying NBC had made only $15M in iTunes video sales despite being the number one producer of content, he flat-out said that Apple and iTunes had "destroyed the music business" in terms of pricing and that video was next unless "we take control." Of course, seeing as consumers can access Universal's entire music catalog with various subscription services for under $10 a month ($36 a year, in the case of Yahoo Music) and entire NBC shows for free on the web, but still choose to buy songs and shows straight-up on iTunes anyway, it might be fair to say that NBC Universal is still figuring out how to monetize its content effectively, but really, where's the fun in that? Round 7, fight!
Jeff Zucker says iTunes deal only netted NBC Universal $15 million
Not that it comes as much of surprise given recent developments, but NBC Universal's Jeff Zucker is clearly still none too pleased about the company's deal with Apple, as evidenced by his recent comments at a benefit for Syracuse University. According to Variety, Zucker lamented the lack of flexibility on pricing, and the fact that NBC U wasn't able to get a cut of Apple's hardware sales, saying that "Apple sold millions of dollars worth of hardware off the back of our content." He also dropped the bomb that the iTunes deal netted NBC U "just" $15 million in revenue, despite the fact that NBC's programming accounted for 40% of video sales on iTunes. Not coincidentally, all of this comes on the same day that NBC Universal (and its partners) launched the beta version of Hulu.com, which it hopes will provide some competition to iTunes, not to mention be better for its bottom line.
NBC Universal getting in the HD distribution biz
Details on this one are still scarce, but it looks like NBC Universal is jumping head first into the high-definition distribution business. Just months after launching the 24/7 horror channel Chiller, the firm is now releasing its first two HD titles for pay-per-view and video-on-demand. While it wasn't specifically stated which mediums would offer up the HD PPV / HD VOD niceties, folks who are graced with NBC Universal's offerings will initially find Hollywoodland and The Return for their viewing pleasure. Although the spooky The Return won't hit the tube until March 29th, Hollywoodland is reportedly available right now, so for those of you who've plunked down the coinage required to check it out, be sure to let us know how it went over.
Access Hollywood in iTunes
Last last night I saw the graphic to the right in the iTunes Music Store. I went to check it out again this morning to find that the related page had disappeard. Well, as of right now (2:48PM EST) it's back [iTunes link] with one (free) episode available. In the six minute video, Access Hollywood reporters antagonize interview the likes of Felicity Huffman, Reese Witherspoon and Amy Adams. If celebrities are your thing, check this one out.