NBC to Pull TV Content from iTunes

Posted: September 1, 2007 in Content, Digital Entertainment, Digital Video

Just days after announcing the name of the joint NBCU/News Corp video site, Hulu.com, the New York Times reports that NBC will not be renewing their contract with iTunes when the two year agreement expires this December. NBCU is the #1 supplier of content to iTunes and accounts for 40% of downloads, with popular titles such as “Battlestar Galactica,” “The Office” and “Heroes”.

Since video will account for much of the future revenue growth for Apple’s iTunes and related products such as the iPhone and iPod, the media giant pulling back, and the ripple effect it may have on other media companies like CBS, Discovery and News Corp, may make it more difficult for Apple to maintain its stronghold on online content distribution. Competitors like Wal Mart and Amazon surely will try to jockey into position to work more closely with the media companies to gain back market share.

Combined with the effect of Hulu.com and possible subsequent similar efforts from the other media conglomerates, this news immediately creates a wind of change that will rock the world of digital content distribution as we know it today. Exciting times are ahead…


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