NBC cancels Apple iTunes download contract

by Alex Donohue, Brand Republic 31-Aug-07, 09:45

LONDON - NBC Universal, the largest supplier of digital video downloads to iTunes, has declined to continue its contract with Apple for downloadable video content after December, having been unable to reach an agreement on pricing.

According to The New York Times NBC, which owns the Bravo, Sci-Fi and Telemundo channels, will halt the supply of its digital download content to Apple only 12 months after first agreeing a two-year deal.

Around 1,500 hours of its entertainment output, including the US version of 'The Office', 'Heroes' and 'Battlestar Galactica', will no longer be available through Apple's online store.

NBC officially gave 90 days' notice to Apple yesterday of its intent to cancel, which coincided with it revealing the name of the video sharing website it is setting up with News Corporation -- Hulu.

The development could affect Apple's business arrangements with other suppliers, which include CBS and News Corp. It is believed NBC Universal favours short-term content deals, allowing more flexibility for where its output appears.

Apple, which receives a reported 40% of its video download content from NBC Universal, had a similar falling out with Universal Music Group's Vivendi in July, which resulted in the music publisher only supplying tracks to iTunes "at will".

According to reports, NBC terminated the contract because it wanted assurances of better piracy controls, a larger share of revenues on downloads, and for Apple to "bundle videos" in order to increase profits.

NBC and Apple have so far declined to comment on the decision.