NBC Ties Up with Apple for iTunes

Apple Inc. and NBC Universal have announced a tie up to present iTunes users with NBC shows on demand for a price of $ 1.99 per episode.

NBC Universal is the second major television network to offer its content on Apple’s online store. Walt Disney Co. was the first media giant to jump on board when Apple said in October that it would start selling television shows, music videos and short movies from Pixar.

The videos can be viewed on the computer using iTunes software or on the new video iPod.

Apple has sold 3 million videos since the video iPod’s debut in October. CEO Steve Jobs on Tuesday said that figure "far exceeds our initial expectations."

Jobs wouldn’t detail sales of the video iPod but did say, "It’s no secret that we’re shipping a lot."

Apple shares rose 3.1% Tuesday, closing at $ 74.05.

NBC started talking to Apple last spring about distributing programs through iTunes, but it decided to proceed only after seeing the initial result, said Jeff Zucker, president of the NBC Universal Television Group. One important factor is that the Internet distribution does not seem to affect the viewership of television programs, he said.

Ratings of ABC’s "Lost" and "Desperate Housewives" have increased since they have been available for sale on iTunes. Similarly, Mr. Zucker said, the audience for "NBC Nightly News with Brian Williams" has grown since the network started making a Webcast of the program available at 10 o’clock Eastern time each night.

NBC will sell episodes of some of its current programs, including "Law & Order," "The Office," and "Surface." It also includes some cable programs, including "Monk" from USA Network and "Battlestar Galactica" from the Sci Fi Channel. NBC will also sell some older shows to which it owns the rights, like "Alfred Hitchcock Presents," "Dragnet" and "Adam-12."