• by Wayne Friedman , December 7, 2005

For NBC, the deal with iTunes comes down to this--if you can't beat 'em, join 'em. But when you join 'em, go one better.

NBC Universal has given Apple iTunes Music Store its second major network deal, which will enable consumers to buy network shows on-demand for $1.99 a play. NBC Universal has inked an agreement for 11 shows--current series as well as library programs.

This includes NBC's mainstay "Law & Order," as well as "The Office," "Surface," "The Tonight Show with Jay Leno," "Late Night with Conan O'Brien," USA Network's "Monk," and Sci-Fi Channel's "Battlestar Galactica," as well as classic library shows "Alfred Hitchcock Presents," "Dragnet," "Adam-12," and "Knight Rider."

This trumps the earlier ground-breaking deal that Walt Disney's television networks put together with iTunes two months ago, in which five shows--including "Desperate Housewives" and "Lost"--would be available for consumers to buy for $1.99.

But there is a lot more.

John Miller, chief marketing officer of the NBC Universal Television Group, says: "We get branded pages and a considerably broader range of content on the site." He says this includes specific pages for all the shows--including a Vintage page for NBC's older programs. "Each will be a living, evolving retail space where we can preview shows, present free special offerings, and offer product for sale--the next stage for iTunes video electronic sell-through. Soon a Bravo Page will follow--and perhaps others."

Although the networks are experimenting with advertising-free content, few media agency executives are worried that on-demand will take over the world in terms of how entertainment is distributed--a business shift that would leave advertisers in the cold.

"Everyone is trying to get their hand around this," said Andy Donchin, senior VP and director of national broadcast for Carat North America. "The world is moving pretty quickly. But the network business is still pretty strong. It's going to be with us for a while. The 30-second spot still has plenty of value."

NBC is solidly in last place among the four major networks. This November sweep, NBC fell some 18 percent versus a year ago among adult 18-49 viewers. With iTunes, NBC--unlike Walt Disney--is using the deal more as a specific marketing push.

First, iTunes will be touting NBC shows in terms of tune-in advertising--ads on the iTunes Music Store will tell users where and when the show airs on the network. Second, NBC is using the iTunes deal to hype its newer, lesser-viewed shows "The Office" and "Surface."

"For shows that are in tough time periods, here's the chance to have a secondary window," said Shari Anne Brill, vp-director of programming services for Carat North America.

But not all shows are created equal, and Brill says the $1.99 standard price for all iTunes TV shows should vary--especially in comparing old versus new, and high-rated versus lesser-viewed programs.

Asks Brill: "Why should I pay retail if they want me to sample shows? Right now, iTunes offers some free downloads of music."