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Studio Briefing

12 September 2007

Who Should Set Price for Online Video Downloads?

As rumors continued to circulate that Apple is considering slashing the price it charges for video downloads on its iTunes Music Store, News Corp President and COO Peter Chernin has expressed his concern about the reported cuts. In an interview with Reuters while on business in Poland, Chernin said that he plans to discuss Apple's pricing structures with the company but that at present he's not engaged in a dispute with Apple -- unlike NBC Universal executives who have notified Apple that they plan to remove all Universal movies and NBC television shows from the iTunes website by the end of the year. "Right now we have a perfectly good relationship with Apple," he said. "But let me say this, we're the ones who should determine what the fair price for our product is, not Apple." (An NBC Universal spokesman later agreed with Chernin "without question.") Chernin's remarks appeared to raise new concerns about who really does control the pricing of such related items as movie theater tickets and DVDs (which are often sold as loss leaders by such warehouse outlets as Wal-Mart and Costco).

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