19.51.36 - Mark
Apparently NBC and Apple are bickering over video on iTunes, with NBC saying they're not going to renew their contract (which expires at the end of the year) with Apple because they want to bundle Movies with TV episodes, jack up the pricing and throw more DRM at non-existent problems. Apple meanwhile is more than happy to let NBC screw themselves.
There are a few things to note in this little mess. First, at $1.99 the networks are making a decent wad of cash. I haven't dug up the numbers recently, but for an hour long prime time TV broadcast the network will make about $.60 per viewer selling advertising spots.
I'm sure what's bugging some idiot executive at NBC is that they can't price the iTunes videos the same as the inevitable cost of the same episode of DVD. While things like Heroes, Studio 60, and other broadcast shows might sell for just under $2 / episode in a box set, some of their cable properties like Battlestar Galactica, Psych, or Monk are well over $2.50 an episode (BSG is over $3.50 an episode on DVD). There's a certain understandable logic in that argument, but it's flimsy at best.
iTunes videos are low quality, limited to a couple of devices, and lack all the special features you get in a DVD box set, so in reality iTunes videos are, bluntly, a rip off already. Jacking the price up any is stupid, but pushing it up to, is one article has placed it, $5 an episode is just shy of mugging your customers and leaving them for dead.
Personally I've got bittorrent.