Friday, September 07, 2007

NBC dropped iTunes and hooked up with Amazon

They'll get more money and more control than Apple would give them:

NBC Universal significantly deepened its relationship with Amazon’s digital video download service after a dispute with Apple over the pricing of television shows on iTunes.

The media conglomerate, part of General Electric, said yesterday that Amazon had agreed to give it something that Apple would not: greater flexibility in the pricing and packaging of video downloads. As a result, NBC Universal said it had agreed to sell a wide variety of television programming on Amazon’s fledgling Unbox download service, including the drama “Heroes” and the comedies “The Office” and “30 Rock.” Episodes will be available on Unbox the day after they are shown.

While Amazon is still working to determine pricing, Unbox typically charges more for newer releases than for older ones. Unbox also gives consumers more options, including whether to rent a movie for $3.99 or buy a download for $14.99. Amazon agreed to offer promotions, including a 30 percent discount when buying full seasons of television shows.

Apple sells episodes of television shows for a flat $1.99, with movies priced at $9.99.

[...]

Unbox is still limited in one important aspect: It is not compatible with Apple’s iPods, which are by far the most popular portable video players.
(via)

This is a step back, not a step forward. Broadcasters should make their content more available not less. How can they make a profit? Soft advertising through product placement and maybe an ad (a graphic) placed off to the side of the screen. Something noticeable but that doesn't get in the way. Then make it available for downloads, keeping track of how many people download it so the advertisers know how many viewers saw their ad. It's a win-win situation for everyone.