Excite News – Apple Escalates NBC Spat Over iTunes — This is typical of the way boneheads operate. Good for Apple doing this.

Apple Inc. AAPL AAPL escalated a dispute with NBC Universal over the pricing of television shows by announcing Friday it would not sell any of NBCs programs for this fall season on iTunes.

Earlier, NBC had told Apple that it would no longer allow its programs to be sold via iTunes at the end of the year. NBC Universal-controlled television programming accounts for an estimated 40 percent of the video downloads on iTunes.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apples vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”

Rather than cut off NBC programs in the middle of the season, Apple decided to stop before the new fall episodes premiere next month, he said. That would be a blow to fourth-place NBC, which could use the buzz provided by Internet sales for its programming – not to mention the money.

ABC, CBS, Fox and the CW, and 50 other cable networks, have deals in place to sell fall shows at iTunes current price of $1.99 per episode, Apple said. NBC wanted Apple to pay more than double its wholesale price for the material, which would have resulted in the retail price increasing to $4.99, Apple said.