Published:
10-Sep-08
TV shows from NBC Universal (NBCU) have been re-introduced to Apple's US iTunes store (iTS), nine months after the network withdrew its content from the service following a dispute over Apple's flat rate pricing structure. New standard definition (SD) shows from NBC, USA Network, SCI FI Channel, Bravo, Sleuth and NBC News can be downloaded for $1.99 per episode. Older series such as
The A-Team and
Kojak will reportedly be priced at $0.99 but at time of writing this lower pricing tier had not yet been introduced.
One episode from each of the most popular NBCU series will be available as a free download through the iTS for two weeks following launch. For a limited number of shows, including Knight Rider and My Own Worst Enemy, the season premiere can be downloaded through iTunes a week before their initial television broadcast. Subsequent episodes can be purchased the day after broadcast.
Apple has also added high definition (HD) TV shows from NBCU, ABC and Showtime to the iTS. HD episodes cost $2.99 each and can be played on PCs, Macs or through the Apple TV. Upon purchasing a HD show customers receive the equivalent SD file at no additional cost for playback on the iPod or iPhone.
Our take...
With TV shows available from a host of content owners including ABC, FOX, The CW and CBS the lack of NBCU content on the US iTS has been conspicuous – prior to the Studio's withdrawal NBCU shows had accounted for 30 per cent of iTunes TV show sales. However, the return of the network's programming is unsurprising. A handful of NBCU shows have been sold through the UK iTS since May 2008 using variable pricing. In the same month Apple introduced a degree of pricing flexibility to the US store, selling HBO shows are either $1.99 or $2.99.
Following the dispute with Apple NBCU has licensed content to other online stores (including SanDisk's short-lived Fanfare service) in a bid to weaken the hardware manufacturer's hold on the paid online television sector and strengthen its own negotiating position. However, Apple's device-centric store continues to dominate the US transactional online television market which, according to Screen Digest, is set to generate revenues of $414m (€302m) in 2008. In order for NBCU to maximise its transactional digital revenues the network could not afford to remain absent from this platform.
NBCU is not the first content owner to withdraw shows from a digital outlet only to reconsider several months later. In April 2008 the CW stopped streaming episodes of Gossip Girl on its website, hoping the sizeable online audience would migrate to watching the show on the network's television channel. When this did not occur the CW resumed ad-supported online streaming of the show. Many of the US networks are continuing to experiment with digital distribution of their content in order to try to maximise online revenues while minimising cannibalisation of their traditional audience.
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