BitchFight! Apple Slaps Back over NBC Pullout

So, NBC gave notice that it may cancel its contract with Apple to sell TV shows through the iTunes Store. In response, Apple will cancel all NBC programming after the current seasons have run. With NBC's contract still valid until December, this is a cheeky little bluff-calling maneuver from Cupertino.

Apple is spinning this as a "David and Goliath" story. Says Apple's iTunes VP, Eddy Cue (man, he should really be called Fast Eddy):

We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase. We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.

According to the AP story, Apple says NBC wants to double its wholesale price on its shows, forcing a retail price of $5. NBC denies this. NBC also says that Apple is "contractually obligated" to keep selling shows right up until the contract expires

As ever, Fake Steve has a great take on this:

Their big argument is that we need video content to sell our video iPods. So they figure they've got us by the short hairs [...] Then again, they need us. If they walk, they're giving up 80% of the distribution channel. So at this point it's kind of a game of chicken.

http://blog.wired.com/gadgets/2007/09/fight-apple-sla.html