NBC vs. iTunes
"The iTunes service has sold songs for 99 cents each since its beginning four years ago, except for the recent introduction of songs without copy protection. Episodes of television shows sell for $1.99, with movies priced at $9.99. NBC Universal and other companies say they want to increase prices by packaging content— say an episode of “The Office” with the movie “The 40- Year-Old Virgin,” because they both star the comedian Steve Carell. In the past, Apple has argued that a range of pricing would complicate the iTunes experience and squelch demand." (Brooks Barnes, The New York Times)
NBC's demand, while understandably greedy and commercially sound, is idiotic. Why would a customer want to download both The 40- Year-Old Virgin and an episode of The Office "because they both star the comedian Steve Carell"? I mean, what's the logic? iTunes - and other digital download services - enable users to pick and choose what they like. By battling iTunes - which is not a content provider, but a service provider - NBC is really battling customers and their freedom to choose what, when and how. Three implications: a) By embracing a pre-web business logic, NBC will become the Metallica of the situation. b) Steve Jobs' opposition to the concept of variable pricing has made iTunes a valid alternative to piracy. c) The majors have started a digital siege: I wonder if iTunes will be solid enough to withstand the upcoming attacks.

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