Just read this piece on the “he-said/she-said” debate between NBC executives and Apple executives:
80/20 Apple is right here, of course. They did not give NBC any pricing priviledges that they didn’t also give to all video content producers. However, Apple did introduce it’s first pricing variation for HD with the AppleTV rentals earlier this year, and that’s more than it had last fall when NBC pulled its content.
I think, of course, that Apple is avoiding the most obvious solution to its problem:
- Buy NBC off General Electric for a fair price
- Fire at least the top 2-3 levels of executives at NBC
- Set in place a modern digital content strategy
- Execute non-exclusive, but solid digital content contracts with Apple
- Take the new NBC public or sell it
As a side benefit, they could really have some fun with MSNBC.
What’s the point of Apple having a $135B market cap if they don’t use it? My guess is that if executed properly, the above strategy could increase the value of both NBC and Apple. Worst case, the upside on Apple is likely greater than the downside for NBC, making the “investment” worth it.