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NBC Universal has pulled episodes of its TV shows from the iTunes store after the two parties failed to come to agreement over a new contract, reports The New York Times (via MarketingVox).
According to reports from anonymous insiders, NBC and iTunes were unable to develop terms agreeable to both parties.
At issue were NBC’s desire to have more control over pricing, which is currently dictated by a one-cost-fits-all model on iTunes. The network reportedly also wanted to bundle episodes in order to sell more and increase revenue.
NBC’s episodes account for 40 percent of downloads from the iTunes TV show store. Episodes will continue to be available through December, when the existing contract expires.
It’s possible a new agreement could be reached between now and then, but if not, NBC TV shows will gracefully disappear from iTunes.
NBC joins corporate sibling Universal Music in announcing a severing of ties from Apple’s music store. Universal announced last month that the lack of flexible pricing, which would have empowered it to put a higher price on more popular music, spurred its decision to not renew its iTunes contract.
Universal Music also added it would continue to sell music through iTunes at-will, retaining the right to pull the media at a moment’s notice. It’s not known whether NBC would consider a similar arrangement.
Apple says inconsistent pricing and packaged bundles would complicate the streamlined iTunes process and bite into demand.
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