NBC Universal returns to iTunes, altering its pricing model
After a pullout last year appeared to pit two of America's most resplendent, rainbow-colored properties at odds with one another, NBCU's Jeff Zucker had his chance to make a Steve Jobs-like play for the Apple faithful.
NBC's comeback to iTunes was announced this morning in San Francisco by Apple CEO Steve Jobs during an event where its two best-selling iPod models were updated. The importance of that announcement is both symbolic and significant: At one time before the network pulled out last fall, it was estimated that as much of 40 percent of all television-derived content purchased on iTunes was produced by NBC.
Earlier disagreements over pricing had strained the relationship between the network and the service provider, at the time that NBCU was busy getting its online video service Hulu off the ground. NBC's return would likely accelerate video downloads significantly in the coming months, as the market has matured quite a bit in the one year since the pullout.
It does appear as if NBC got its way somewhat, with the introduction of a variable pricing model. Standard definition shows will still be made available for $1.99, although high definition versions of some series will be available for a dollar more. Breaking from its standard pricing model, Apple will allow NBC to charge 99 cents for select "catalog" downloads.
A Season Pass option will also be made available, so that consumers can purchase an entire season at a discounted price (this in light of the absence of a complete subscription model for iTunes as a whole); and for the next two weeks, a free episode will be made available from among NBC's top shows.
Furthermore, iTunes users will get an advanced showing of new shows including the new Knight Rider one week before their premiere on the network.
"The return of our shows to iTunes is terrific news for everyone who loves television and the ease and convenience of Apple's iTunes," NBCU president and CEO Jeff Zucker said. "And now, by offering consumers a variety of new options, our fans have even more ways to enjoy our content."