iTunes video: Zucker walks, Murdoch talks

Walking away from profit is foolish. Zucker could have kept iTunes AND had the hulu thing going.
As a CEO he is not very smart - this either/or attitude is all about his ego.
Its becoming obvious that consumers want their content in MANY different ways - so give it to them and make more money.
Isnt that what all these angry egotistical CEO’s get paid for?

As a consumer, this puts me at a decision point on whether to purchase an iPhone that is tied to iTunes where I cannot (legally) watch NBC shows, or to simply not watch NBC shows on any kind of portable device, and just watch them on TV or at my computer.

There are TV show alternatives for me, but there is nothing close to iPhone that I’m willing to go back to.

What is the streaming format for Hulu.com? Hopefully whatever it is, Safari on the iPhone will support it (I’m sure they will in time), and I’ll still be able to watch all the content on my iPhone, just not have to pay for it then, since it will be served off of Hulu.com.

I miss NBC on iTunes. And they are taking so much with them when they go. One of the things about iTunes is that I could watch when and where I wanted, in places I would never watch television or haul a laptop (ever since the iPhone, the laptop requires hauling), like the bathroom at work or on public transportation on Chicago’s South Side.

Now the bad part is that Steve Jobs could have let them sell with a commercial or two, it would not have hurt anyone. I watch World News Webcast on my iPhone and it has a commercial, so does my New Yorker Animated cartoon as well as the Tales from Lake Woebegone podcast, though none of those are paid for by me.

I do not see why they could not compromise on $.99 an episode with 2 minutes of ads or $1.99 without. If they wanted NBC could easily have access to iPods with ads and not even go near iTunes and it would not be hard at all. All they would have to do is have the downloads from their website with the ads. Apple need never know (of course I don’t know if people are as willing to pay for content with ads outside of the iTunes store)

As it is, even if HUTU is a wild success, in order to get true portablity, NBC is forcing people to go to the bootlegger. Hutu is not portable and I really do not want to pay for over the cell network or wifi streaming to a portable device. The beauty of iTunes is that even if the content sucked, the product was packaged and delivered beautifully. No one marvels at streaming video because it is not pretty enough yet. But whip a iPhone out of your pocket and show a movie on it, and people swoon.

Hey Y.A.Steve,

Hope you wudnt mind me trying to analyse your post.

Main point: Zucker is wrong to walk away from iTunes.
Rationale: millions of iPod owners will not buy NBC’s content other than on iTunes
Analysis: Can you Steve substantiate or at least give a rational reason why rational people would buy NBC from iTunes, but resort to “piracy” if the same product is available from another supplier (e.g., Hulu, Amazon)?

You may have argued that NBC will hike the price, or that iTunes is superior to other providers but you haven’t. Let me try to guess your analysis: people will punish NBC because they dared to challenge the iMighty? Well perhaps there are enough people like that in the world. But this is not a rational behaviour, this is an approach of a cult, which by the way is supported by the a free-masonic support of journos…

Where does it say Rupert Murdoch himself made this deal, Greg? And Chris, how do you know Zucker listed the priorities from highest to lowest importance? And why does there have to be a fanboy/anti-fanboy comment on every single Apple post?

I like one-stop shopping of iTunes. So it is NBC’s loss - for me at least. I travel a lot for work, so was accustomed to purchasing series to watch on the plane or on my laptop when I arrived at my destination. I purchased Heroes and the Office in the past. When I heard that they would no longer be available on iTunes, I figured it would not be worth it for me to have to hunt for these series for 2007-2008. I decided that I would not even watch the shows on NBC when I am home because I do not get hooked. Actually I found that I stopped watching NBC almost entirely. Sure.. I miss Heroes … but I found some new shows as well (Prison Break is awesome)… so NBC’s loss by giving me something one year and taking it away.

He speaks of $15M as if that was the potential market size. Paid TV shows without commercials is a brand new market just developing.

And… this is the Christmas of the video iPod nano. The market for iTunes video is going to be much larger in 2008 than 2007.

If it was $15M then he easily walked away from $50M in 2008. Not to mention a valuable audience building mechanism… something one would think that the last place network would be interested in.

$50M and it builds the audience for the broadcast offering… instead he went with Amazon and Hulu? 25 million new screens for video are going to be under Christmas trees and Zucker is doing his best to make sure none of them play any NBC content. (Some will, of course, through piracy and he’ll not get one dime for them.)

Genius!

“Soon your computer will be your television”

And how does this hurt NBC? Hulu.com is the place where you can watch these shows for free instead of being charged by Apple or downloading on a P2P that you might get a virus from.

when people want to watch video in DVD or HD format, they will look into compatible hardware. iPhone, iTouch and iPod provide large screen display compare to most mobile equipment, and they all work close with iTune.

If NBC disconnect from iTune, which means NBC prefer their customer to watch their video in smaller size display mobile unit. Or NBC feel 1280 x 720 format is good enough?

“NBC Universal CEO Jeff Zucker placed his company’s digital strategy last on his list of priorities…”

Apple deal aside, how can the CEO of any media company say that their digital strategy is of lowest importance and remain CEO? Is that not the kiss of death?

Hey Greg, someone is challenging the dominance of your iCult and you jump to smash them, ay?

Murdoch negotiates: Zucker walks away from the deal.
Soon when television goes the way of the dodo Zucker will be out of a job. Soon your computer will be your television
and Apple may be at the forefront of this transition which is coming much more quickly than anyone can guess. Look at how quickly the recording industry went from record sales to oblivion. Say what you want but he old man gets it. Way to go Ruppert.

Beltway Greg