NORMAL, Ill. — Computer giant Apple, Inc. is still at a stale mate with television company NBC over the inclusion of NBC’s new fall lineup in Apple’s iTunes online store.
The contract between the two conglomerates ends in December, and if a result is not reached before that time NBC will no longer offer its library on iTunes. This includes popular hits such as “The Office,” “Heroes” and “Battlestar Galactica.”
Apple has had individual episodes priced at $1.99 across the board and NBC would like that price raised for their shows.
NBC Vice President Cory Shields believes that NBC is entitled to a price upgrade because they make sites like iTunes viable.
“Apple’s low $1.99 rate exists to drive sales of Apple devices at the expense of those who create the content that make those devices worth buying,” Shields said.
NBC’s reasons for demanding a pricing change is that they are the top contributor of digital video to the online store. Apple refuses to budge on raising prices because they feel that varying prices for different shows will complicate the iTunes experience.
The innovation of putting television shows online has altered the way people consume the medium. Businesses such as Best Buy, however, maintain that it has not conclusively hurt the DVD sales of television shows.
“We don’t have any data to draw a conclusion around the relationship between television on DVD and sales via the Internet. What I can tell you is that TV on DVD continues to be a growth category for us and is one of the more popular DVD categories,” Brian Lucas, public relations director for Best Buy, said.
According to Lucas, consumers are seeking to fill different needs when they buy shows on the Internet as opposed to on DVD in Best Buy stores.
“Sales of TV on DVD or through the Internet are often for a different type of use. TV on DVD provides the best possible picture and sound and gives you extras, behind the scenes footage, etc..,” Lucas said. “It is for real fans of a show or for people who are interested in a show and want to start at the beginning to catch up before a new season starts.”
Lucas believes that people who buy TV shows on the Internet mostly do so on an individual basis.
“Internet sales are also important but tend to be by episode and are for people looking for entertainment to take with them on a portable player,” Lucas said.