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NBC Chief: Apple Destroying Video Biz

By Ed Oswald, BetaNews

October 30, 2007, 11:54 AM

At the same event where he told Variety that his company only made $15 million off of video sales at iTunes, NBC Universal chief Jeff Zucker also apparently urged colleagues to follow his company's lead.

Zucker was attending a breakfast hosted by Syracuse University's Newhouse School of Communications on Sunday when he made the comments. He said now was a crucial time to take control of the situation before Apple "destroys" the video downloads like it did the music download business.

NBCU has stayed mostly quiet since the removal of its content from Apple's service. However, with the launch of Hulu, officials apparently see it prudent to take a more aggressive stance against the company.

Zucker also provided more details surrounding the company's decision to leave iTunes. Whereas Apple was claiming NBC was attempting to raise prices of video downloads to as much as $4.99, he said that was not the case. Instead, NBC Universal was planning to experiment with premium pricing only on a single program that would have been made available for $2.99.

Zucker claims that Jobs himself struck down the idea.

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By imafurby

posted Oct 31, 2007 - 2:49 PM

Zucker's only trying to destroy the country with his lousy, rotten anti-American left wing biased network. I guess that doesn't count.

Score: 0

By skapig

posted Oct 31, 2007 - 11:50 AM

Destroy is not quite accurate. Apple has the tools and the customer base to make it work. NBC just wants a bigger cut. Raising prices doesn't seem to be very intuitive if you are complaining about low sales. While I'm personally not an iTunes fan, it is quite clear that Apple knows its market well. It acts quite deliberately. If the content owners act like idiots and rasie prices too high, then Apple loses too. What the content owners resent is not being given the opportunity to increase the price when there are in fact enough people willing to pay it to make it worthwhile (at least according to their calculations).

Also consider that music has much greater replay value than video to consumers.

Score: 0

By dougau

edited Oct 31, 2007 - 12:06 AM

I guess that rocket scientist Zucker finally caught on to the massive conspiracy for everyone in the United States to ditch their 52" wide screen TV's for Apples 3.5" screen iPod.

What a freaking moron!! How did this dimwit ever get to be CEO of anything?

Score: 0

By ptksr

posted Oct 30, 2007 - 4:33 PM

"He said now was a crucial time to take control of the situation before Apple "destroys" the video downloads like it did the music download business."

If it weren't for iTunes, I wouldn't have bought half, actually, most, the music I have in the last 2 years. Now, thanks to idiotic comments like that, I'll be going back to torrents.

Score: 0

By iamtux

posted Oct 30, 2007 - 2:09 PM

I really wish that dimwit would stfu. Especially after complaining they "only made $15 million" on iTunes. Honestly, grow up. I refuse to use any other two bit service they've got going since they left iTunes. I actually enjoyed having the latest Scrubs and other shows I watch on NBC on my iPod/iPhone.

Score: 0

By treworld

posted Oct 30, 2007 - 1:38 PM

"only made $15 million"???

That's freakin' $14.999999999999 more money that I'll ever have in my life!!!

These companies needs to stop being so damn greedy.

Score: 0

By preinterpost

posted Oct 30, 2007 - 2:18 PM

And it doesn't sound like having the aptitude to ever make a single penny more.

$15M is a drop of water on a hot stone for a company with an operation of the size of NBC.

Score: 0

By Program86

posted Oct 30, 2007 - 1:05 PM

His comment needs slight rewording to convey his real thought process.

"Apple is destroying 'NBC's chance to exploit' the video biz"

Its tough to exploit users with $3 dollar a piece video downloads when iTunes is undercutting you (NBC) with 99cent video downloads from iTunes.

Whats the matter?? The corporate fat cats aren't getting as ridiculously wealthy exploiting users as they used to? Too bad.

Score: 0

By auiotour

posted Oct 30, 2007 - 4:14 PM

So If I can go buy the entire season of Heroes for $40.00 off amazon, thats what 23 episodes. $1.74 an episode. itunes is selling them for $1.99 (not sure how much goes to apple.But what do you think costs them more, all the unedited scenes being put together, the tons of interviews with the shows stars, all the extra content added. Bet that Makes the price of the DVD even more. So in reality they are probably making hardly anything more on DVD then they did on iTunes. Only difference is long term sales. Once all those hours of work are paid off,it's just bonus money. Where is iTunes, they will be making less.

There are other sites like amazon you can buy Heroes online for $1.89 a episode, $.10 cheaper then itunes. But yet have they pulled these? no.

Score: 0

By -Wanted-

posted Oct 30, 2007 - 3:13 PM

"The corporate fat cats aren't getting as ridiculously wealthy exploiting users as they used to?"

Bingo! Momma needs a new Aston Martin!

Score: 0

By PhoenixPath

posted Oct 30, 2007 - 12:39 PM

"before Apple "destroys" the video downloads like it did the music download business."

What?!?!? iTunes IS the music download business for all intents and purposes.

This guy's obviously not living in this little place we like to call reality...

Score: 0

By bobthegoat2001

posted Oct 31, 2007 - 3:24 AM

"iTunes IS the music download business for all intents and purposes."

Well not really. Only if you have an iPod.

Score: 0

By PhoenixPath

posted Oct 31, 2007 - 9:00 AM

Or if you want to buy music online, cheap, from a well-known retailer...

Score: 0

By NULLedge

posted Oct 30, 2007 - 1:32 PM

he's living in a place called "i sleep in a bed of money lined with money on my liquified money soaked robes."

but to be honest, what company doesnt need more money? with inflation these days those execs can barely afford gas for their private jets

Score: 0

By ogman

edited Oct 30, 2007 - 12:43 PM

NBC Chief: Apple Destroying Video Cash Cow

There, fixed that for you.

Oh, and Zucker appears to be lying about the proposed pricing structure. If he were telling the truth, wouldn't we have heard a denial before now? Better yet, wouldn't the other networks have complained, too.

Yeah, me thinks Zucker is a lying *ucker.

Score: 0

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