News Corp. (NWS-A) isn't considering dropping their relationship with Steve Jobs and Apple (AAPL) iTunes because NBC Universal (GE) said it wouldn't renew the deal to sell shows on Website.
The key issue has been Apple's refusal to allow flexible pricing and a variety of packages, something Jobs says will confuse consumers and cut back on sales.
While News Corp's president and COO Peter Chernin said they aren't in any dispute with Apple at this time, he confirms content providers should have more say in pricing and the type of packages offered to consumers.
"Right now we have a perfectly good relationship with Apple," Chernin told Reuters. "But let me say this, we're the ones who should determine what the fair price for our product is, not Apple."
Other media companies like Vivendi Universal Music Group have been unwilling to sign exclusive, long-term deals with Apple also.
With a lack of strong options at this time, most media companies probably won't make a big deal out of this, but as competitive sites emerge and higher trafficked sites generate significant revenue, we'll probably see more pressure on Apple to have more flexibility in their agreements.
For now they probably won't need to be concerned too much, but they do need to think of the long-term relationships they have with the major media companies going forward.
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