NBC Universal will not renew iTunes distribution deal

NBC Universal is the number one supplier of digital video that is distributed on iTunes, with 40% of the downloads, yet it was unable to come to terms with Apple - over what else, money. Because of this, it will not be renewing its distribution contract with Apple.

The company’s contract to sell more than 1,500 hours of news, sports and entertainment programming on iTunes expires at the end of December. NBC was required to inform Apple by Friday if the contract would not renewed, said Amy Zelvin, spokeswoman for NBC Universal Digital. Source: Forbes

Note that non-NBC shows such as Battlestar Galactica (sob, this is the last season!) and Psych would also be affected. This is another example of the trouble many media companies are having with iTunes’ pricing policies. Many companies have been outspoken about wanted “more” in terms of pricing, as well as different tiers of pricing. Additionally, let’s not forget that NBC Universal will be launching a private beta of its own video service, Hulu, in October.

Update: iTunes upped the ante by saying they would drop Universal before their contract expires, just prior to the fall season.