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The Guardian - UK
The Guardian - UK
Business
Jemima Kiss

How Apple wound up NBC

NBC Universal made just $15m in 12 months from the content it sold on iTunes.

Given that NBC is launching its new video site Hulu.com today, it's hardly surprising that NBC is trying to grab some headlines, but being this candid about revenues in relation top Apple is pretty unusual.

Zucker told a New Yorker reporter during a charity event that the distribution deal with Apple - which accounted for 40% of the video sales on iTunes - had pushed its media revenues "from dollars to pennies".

NBC had asked for a trial on selling some content at $2.99 instead of $1.99 and was also trying to negotiate a share of Apple's hardware sales. Not surprisingly, Apple refused.

"Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money. They did not want to share in what they were making off the hardware or allow us to adjust pricing. We don't want to replace the dollars we were making in the analog world with pennies on the digital side."

Source: Variety

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