From AppleInsider
“We know that Apple has destroyed the music business — in terms of pricing — and if we don’t take control, they’ll do the same thing on the video side,” Zucker said at a breakfast hosted by Syracuse’s Newhouse School of Communications.
NBC originally claimed to be seeking more control over the pricing of songs and videos that it was selling on iTunes, in addition to better piracy controls and more flexibility to bundle video content in an effort to increase revenues.
For its part in the bitter feud, Apple responded by saying NBC was asking for a twofold increase in the wholesale price of its TV show content, which would have resulted in the retail price to iTunes customers increasing to $4.99 per episode from $1.99.
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Answering questions at the breakfast Sunday, Zucker offered substantially more color on the iTunes matter, explaining that it was “a relatively easy decision” for NBC to walk away from the Apple download service because it had only earned about $15 million
He said NBC routinely propositioned Apple to breach its standard pricing model and experiment with higher pricing for one hit show such as “Heroes” by raising the price from the iTunes standard $1.99 to $2.99 on a trial basis. from the service last year in spite of accounting for about 40 per cent of the videos sold on the store.
