"Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money," he said. "They did not want to share in what they were making off the hardware or allow us to adjust pricing." ( NBC Universal chief executive Jeff Zucker (click on links for quote sources))
NBC made 15 millions dollars last year from people downloading TV onto their computers and or iPods. 15 millions dollars! That is free money. It is like people buying DVDs. Every dollar is pure profit. Better, people who discover the show via iTunes (and pay for it) are more likely to get hooked, and watch it for free on the network (thereby increasing ad revenue). People don't stop watching the show on TV, for free, because they can pay for it on iTunes!
Apple should be charging NBC for distribution costs!
Yah, Apple is make a fortune selling nifty devices. But did the networks get a cut from VCRs? From DVRs? From DVD burners? No. And yet the networks are still around, and quite profitable to boot.