AppleInsider reported yesterday that NBC strongly opposes Apple’s 99¢ price point for TV show rentals. Though NBC offers shows for purchase on iTunes for $1.99 ($2.99 for an HD version), NBC Universal CEO Jeff Zucker was quoted as saying 99¢ rentals “would devalue our content.” Putting aside the reasonableness of this position, NBC’s credibility on the issue is pretty weak. Why? They’ve caved on iTunes pricing before.
Think back to late summer 2007, when NBC pulled all of its content from iTunes after Apple refused to increase the per-episode price to $4.99. At the time, NBC shows accounted for 30% of TV show sales on iTunes. A year later, NBC was back on iTunes at the same price point, along with HD versions for $2.99. Apple held their ground on pricing, and NBC backed down. Apple doesn’t need NBC shows. People will still buy iPods and iPhones, and even Apple TVs, without 99¢ TV rentals from NBC. Might Apple sell more devices if they had NBC on board? Sure. But something tells me they aren’t wetting their pants about waiting NBC out on this one.