Back to Mobile View

Skip to Content

Federal rules could prompt NBC TV rentals in iTunes

Last year, things looked bleak for Apple TV users who wanted inexpensive rental access to NBC's content. Former NBC Universal CEO Jeff Zucker made the now-famous comments that "99 cents is not the price point for our content," and that "it would devalue our content."

Now that the network and cable TV / internet giant Comcast have agreed to tie the knot, the US Federal Government has attached many strings to their approval of the merger. Among the many conditions that the companies agreed to in order to consummate their bonds of corporate matrimony was that the merged giant must agree to sell its content on online video services. That opens the way for NBC content, such as The Office and 30 Rock, to be distributed on Apple TV and other similar devices.

In order to gain Federal approval of the merger, Comcast and NBC basically agreed to terms that make it possible for people to bypass cable TV packages and purchase content "a la carte" from iTunes and other online stores. As another part of the agreement, Comcast cannot throttle internet service to block streaming video service and must sell standalone internet service with relatively fast speeds (6 Megabit per second downloads) without tying it to a cable TV package.

While we still don't know how this will all shake out for Apple TV-owning NBC fans, we'll keep our eyes and ears open for any additional news pertaining to the merger and the deals Comcast agreed to.



Categories

Odds and ends Apple TV

Last year, things looked bleak for Apple TV users who wanted inexpensive rental access to NBC's content. Former NBC Universal CEO Jeff...
 

Add a Comment

*0 / 3000 Character Maximum Comment Moderation Enabled. Your comment will appear after it is cleared by an editor.

18 Comments

Filter by:
paduck

Michael - your interpretation of the Constition flies in the face of 200 years of court cases. Especially the last 100 years where Congress and the public recognized the anti-consumer nature of trusts and monopolies. I don't think you can seriously argue the the original framers had any concept of national broadcasters using radio waves and cables to transmit "product" across state lines. If they were capable of understanding it, I imagine they would think of it as commerce between states.

As it regards broadcasters, the public allows them to use it's airways and can therefore require certain behavior from broadcasters. Note the content difference between cable and broadcast. But cable is also regulated by the Telecommunications Act because cable tends to be a monopoly as well - which is anti-consumer. So that's why the government can regulate those guys.

The Constitutionality of these acts and policies is really well-established and accepted. Certainly as it applies to mergers of corporations that are regulated by the federal government or present anti-trust concerns.

Your argument that the free market always benefits the consumer is also wrong. The free market works when there is competition, but when someone "wins" by removing or merging with their competition they can extract monopolistic prices from consumers who have no alternatives. That is one reason for regulation. The market is a powerful tool for the consumer and innovation when it is at it's most efficient. But it is also subject to wide fluctuations and shocks which are not consumer friendly (look at the financial crisis to see what lack of regulation can do in a relative diverse and competitive industry - hint, it wasn't good and the market couldn't fix itself, revisionist theories notwithstanding).

March 02 2011 at 7:25 AM Report abuse rate up rate down Reply
TheCastro

$0.50 or $0.25 is what I'm willing to pay per episode to watch something one time. $0.99 is too much considering how many episodes are in a season.

But the real problem is iTunes needs a monthly unlimited service of like $10, $20 or even $30 a month. I'd gladly pay that.

February 28 2011 at 3:59 PM Report abuse rate up rate down Reply
1 reply to TheCastro's comment
Msmmcdonald75

Super "like" the idea of a monthly service fee for unlimited content.

March 01 2011 at 9:25 AM Report abuse rate up rate down Reply
Michael

Where in the Constitution does it give the federal government this power?

February 28 2011 at 3:37 PM Report abuse rate up rate down Reply
3 replies to Michael's comment
Victor

Maybe Apple will institute a policy that forces content providers to provide tv shows at $1 or not at all. Wonder what Comcast would do then...

February 28 2011 at 3:08 PM Report abuse rate up rate down Reply
Ry

"the merged giant must agree to sell its content on online video services."

They already sell their content in iTunes. They even have new seasons available with Season Passes. According to the above quote it says sell, not rent. Is there more guidance?

"That opens the way for NBC content, such as The Office and 30 Rock, to be distributed on Apple TV and other similar devices."

Although their content is not directly accessible for rental through the ATV2, you can purchase it through iTunes and watch it on the ATV2. You can still purchase their seasons to include Season Passes on the 1st Gen ATV.

"Comcast cannot throttle Internet service to block streaming video service and must sell standalone Internet service with relatively fast speeds (6 Megabit per second downloads) without tying it to a cable TV package."

Good.

February 28 2011 at 2:19 PM Report abuse rate up rate down Reply
2 replies to Ry's comment
Eric

As much as I dislike Time Warner (which is the only decent high-speed connection here), I am very glad that I can have a 30Mbps connection without being forced into buying cable and digital phone with it.

February 28 2011 at 2:58 PM Report abuse rate up rate down Reply
skoochy

@Eric (mostly)

I recently got Comcast HSI at my house after canceling the basic cable (the price increased from $15 to $20/mo and we really didn't use it). AT&T only offered 3Mb/s and I wanted something better, so now I have 16Mbps for about the same price as an "Enhanced Basic" TV-only package. No TV, no phone, and only about $10 more per month than the internet part of a TV/phone/internet package.

Not sure where people have Comcast where they are required to get a whole package, maybe somewhere where there are other choices?

Or maybe the rules being imposed are to ensure that Comcast doesn't start requiring packages, and doesn't stop making content available.

February 28 2011 at 3:40 PM Report abuse rate up rate down Reply
Evan Gusz

In addition, Comcast will now have to honor the law regarding selling it's ComcastSpotrsNet Philly to satellite TV providers like DirecTv. A loophole that kept them from distributing this channel closed last year but Comcast was appealing it. The terms of the merger clearly state they must offer the broadcast rights but they are saying "we interpret the language differently". So don't be surprised if they try to fight this online sales rule as well. Everything about Comcast is shady, including their billing practices but they have so much money (read:power and influence) that they can just skirt any rule they want. They are the perfect example of why monopolies are wrong and how big business considers itself beyond the laws and regulations.

February 28 2011 at 2:17 PM Report abuse rate up rate down Reply
1 reply to Evan Gusz's comment
TheCastro

You're wrong, Kabletown is a family run business, I mean God it's spelled with a "K," Lemon.

February 28 2011 at 3:53 PM Report abuse rate up rate down Reply
vamike78

If they're worried about their content being devalued, then maybe they should consider getting some quality content! $0.99 is a ripoff for half the crap they show on NBC (and the other networks, for that matter)!!!

February 28 2011 at 2:02 PM Report abuse rate up rate down Reply
Dan Pritchard

My TV watching habits (when it's not already on my DVR) usually consist of this logic:
Q. Is it available on Netflix Watch Instantly?
Yes -> Netflix
No -> BitTorrent

If you provide the shows in a way where you get paid, such as Netflix (Netflix pays for it), or iTunes, people might pay you, especially the more places you make your content available. Netflix is my favorite, others, like AppleTV users, prefer iTunes. Otherwise, they will watch them for free. That's the deal. I don't care in the slightest whether NBC, of all networks, is happy with this arrangement. It's reality, and they can adapt or die, just like the record labels.

NBC is a dying network, but I wish they would hurry up and die faster. They used to be the most prestigious, but now they are a laughingstock, and owned by one of the most hated companies in America. It's a long way to fall.

February 28 2011 at 1:43 PM Report abuse rate up rate down Reply
Taz

How can you "devalue" something that anyone with access to Google can download within minutes for free already, be it illegally.

99 cents or a dollar something for us in Australia is still a price to consider before making a purchase for things like TV shows which are often a one time watch.

Given the alternative way to acquire them requires little to no effort nor does it cost anything.

TV executives need to pull their heads out of their asses and figure out how to get shows on TV around the world as they air in the US that way we would actually bother watching TV instead of downloading them illegally.

February 28 2011 at 1:23 PM Report abuse rate up rate down Reply
Matt

NBC thinks $0.99 will devalue their content yet they have previous seasons available for FREE on Netflix Instant Watch?

February 28 2011 at 1:14 PM Report abuse rate up rate down Reply
1 reply to Matt's comment
deviladv

Stop it! Stop it now! This is NBC! No logic shall be tolerated in our race to the bottom of the heap!! :)

February 28 2011 at 1:25 PM Report abuse rate up rate down Reply
Buy an ad here

Tweets

© 2012 AOL Inc. All Rights Reserved.