Big Bang

NBC Universal has indicated its intent to back out of iTunes video distribution of its TV shows. (NBC and Apple could still reach agreement, but NBC's notice fulfills a contract stipulation to give 90 days notice to avoid an auto-renewal of the contract.) This notice comes soon after Universal Music Group, the world's largest label, said it would withdraw its catalog. More defections could be imminent as distribution deals approach expiration.

If this revolt gathers momentum it will turn into an entertaining and potentially explosive example of an unstoppable force meeting an immovable object. Both sides are right. The media publishers want more control over how their product is priced and packaged. It is preposterous that the owner cannot have such control. Apple says that uneven pricing and complex packaging would ruin the elegant iTunes buying experience and soften demand. Apple is correct: witness Google's generally unsuccessful attempt to sell owner-priced media in Google Video.

As an Apple hater, I'm happy to see pressure applied. The media companies know that their stuff is being flagrantly used to sell Apple's higher-margin devices. The iTunes music consumption experience, and the iPod, have been inferior products from the start. As a major-label hater, I scorn their avarice, uninformed as it is by the experience of the last ten years during which Apple saved their hides and dragged them into the digital distribution age. And even I admit that if it weren't for iTunes, I would have missed out on Battlestar Gallactica (an NBC Universal show) completely.

Change is usually good. Sometimes it's hard to see who will win.

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