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, and perhaps more, 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.
Although there has always been some degree of tension over Apple's pricing scheme, which is a one-size-fits-all model, it's also curious that NBC Universal is launching a private beta of its own online video service in October, called "Hulu." Apple fired back this afternoon, saying that it would pull NBC Universal video content before the fall season begins.