NBC balks at Apple's 99-cent TV show rentals

NBC Universal CEO Jeff Zucker said the network is unlikely to partner with Apple (NASDAQ:AAPL) on the computing giant's new iTunes TV episode rental service, contending the effort undermines the value of its programming. The iTunes effort--announced by Apple earlier this month in conjunction with the launch of its iOS 4.1 platform update--offers consumers commercial-free rentals of popular network series priced at 99 cents each; Walt Disney Co.-owned ABC and News Corp.-owned Fox have signed on, but NBC and CBS remain holdouts. "We do not think 99 cents is the right price point for our content... We thought it would devalue our content," Zucker said at a Goldman Sachs investor conference Wednesday, noting that NBC series are available as premium iTunes downloads priced at $1.99 each. News Corp president Chase Carey, speaking at the same investor conference, described the Apple 99-cent agreement as a "short-term test."

Network executives have privately expressed grave concerns over how partnering with Apple will impact their existing revenue deals with cable providers like Comcast and Time Warner--at present, ABC, CBS, Fox and NBC receive about $250 million annually in broadcast retransmission fees industrywide. Insiders tell The Wall Street Journal that Fox and ABC consider their participation an outlet to experiment with new pricing and distribution models--in addition, Fox is relying on Apple to assist with its own digital efforts, including a forthcoming news daily delivered exclusively via connected devices.

For more on Zucker's iTunes comments:
- read this Reuters article

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