NBC Universal announced they will no longer sell TV show episodes on iTunes as they were unable to come with an agreement with Apple on pricing. NBC Universal used iTunes to sell episodes from shows like BattleStar Galactica, Heroes and The Office.
This is a pretty big blow to the digital video section of Apple's iTunes store as NBC's videos account for about 40 percent of downloads.
The decision by NBC Universal highlights the escalating tension between Apple and media companies, which are unhappy that Apple will not give them more control over the pricing of songs and videos that are sold on iTunes.
NBC Universal is also seeking better piracy controls and wants Apple to allow it to bundle videos to increase revenue, the person familiar with the matter said.
NBC Universal is the second major iTunes supplier recently to have a rift with Apple over pricing and packaging matters. In July, the Universal Music Group of Vivendi, the world’s biggest music corporation, said it would not renew its long-term contract with iTunes. Instead, Universal Music said it would market music to Apple at will, which would allow it to remove its songs from iTunes on short notice.