NBC and ITunes - GE, AAPL

By TheWild1 at 20 December, 2007, 8:00 am, Categories : General

You might of already heard that NBC (parent company GE) plans to opt out of its contract with Apple’s iTunes (AAPL) and begin distributing network shows on its own platform, Hobo…. I mean Hulu. Now I have never bought any shows off iTunes, but I know there are tons of people that do. Also by no means am I an Apple guy.

hulu

Apparently iTunes and NBC couldn’t agree on a proper pricing plan, so NBC felt that they could make more money offering their own video distribution service. NBC was responsible for 40% of iTune’s video downloads. That is 40% Apple is going to have to try and make up somewhere else.

As I stated before people are assuming this break in the contract came about because of NBC’s new project Hulu. In the mean time, NBC is controlling its videos directly off its site. The one problem is that the software they are using is not compatible with Apple. Now I may not be the most brightest of them all, but I do know that by excluding all Apple users, that is a loss in potential profit. That also means loss in profit for GE.

Both sides are blaming each other for the broken relationship, so it is unclear who is in the wrong, but from the break up both are losing money. At the end of the day that is the bottom line.

By the way I can’t wait for American Gladiators to come back!