NBC ... You just don't get it, do you?
According to IMDb, NBC Universal President and CEO Jeff Zucker lashed out at Apple and its iTunes Store Monday, saying the service is “preventing media companies from selling online content at profitable rates.” Sale of individual episodes of NBC’s shows was recently halted after the company said it wanted to charge more than iTunes' download price of $1.99. Zucker, who was apparently dropped on his head as a child, said NBC only earned $15 million from episode sales through iTunes and complained the service would not let NBC raise it’s prices.
“We know that Apple has destroyed the music business - in terms of pricing -- and if we don’t take control, they'll do the same thing on the video side,” Zucker said.
This is about the dumbest thing I have ever heard.
It’s bad enough that NBC only has four or five good shows, the best being The Office and 30 Rock, but now they want to make more money off of shows, that will eventually be sold on DVD, HDDVD, BluRay, into syndication and whatever new formats come along in the next 10 years.
What the hell are you thinking? $15 million isn’t a lot of money, but how much were you making on new episode downloads before iTunes? NOTHING! NOTHING AT ALL! IT DIDN’T EXIST!
And as far as how Apple “destroyed the music business,” you are about a misinformed as the head of a major communications company could be. The music industry couldn’t charge any more for music downloads than it already is. In fact, if you look at the emusic factor, iTunes downloads cost three-times more than they should. THREE TIMES. In fact, the whole music industry should probably be investigated (again) for price fixing, since the cost of a physical CD that has actual worth is about the same as the download price – for a product that can’t be physically touched or resold.
The fact remains that no matter how much you think you should get for your shows, we can watch them – and record them – for free. Anytime you can get paid for something you give away for nothing, you should take the money and run. And while NBC and Fox have teamed up to maintain a Web presence with the video service Hulu, NBC Universal’s lack of understanding for programming sales through emerging media services is as short sighted as it is shocking stupid.