Zucker says Apple Deal Rotten

From Variety
NBC U topper Jeff Zucker warned that new digital business models were turning media revenues “from dollars into pennies” and revealed NBC U booked just $15 million in revenue during the last year of its deal with Apple’s iTunes.
Interviewed by The New Yorker’s Ken Auletta at a benefit for Syracuse University, Zucker described the impasse that led to NBC U’s decision not to renew its current iTunes deal, which expires in December.

NBC U wanted to experiment with higher pricing for one hit show such as “Heroes” by raising the price from Apple’s standard $1.99 to $2.99 on an experimental basis.

In addition to some flexibility on pricing, NBC U was seeking a cut of Apple’s hardware sales.

“Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money,” Zucker said. “They did not want to share in what they were making off the hardware or allow us to adjust pricing.”

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Before Apple came along,

Before Apple came along, they were getting ZERO revenue for their TB shows. Its one of those greedy "duh" moments.

This is the same kind of

This is the same kind of Hollywood "logic" that thinks that when viewership falls the best thing to do is increase the number of ads or that if a show isn't a hit after the first episode airs that they might as well cancel it.

Precedent?

SO, NBC was getting tons of money from Sony, Toshiba, Zenith, Panasonic, etc. from every TV they sold that carried NBC on it?

I don't think so.

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