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NBC announces free downloads, bites Apple (AAPL)

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NBC logoNBC, a division of GE (NYSE: GE), announced late today that it would offer free downloads of its popular TV shows. The programming will be available for PC viewing. TV commercials will remain in the shows and cannot be skipped.

According to The New York Times, the shows can be downloaded for one week after they are broadcast. "The NBC service, called NBC Direct, will begin a testing period in October with plans to be operational in November."

Perhaps it is a coincidence, but the programs will only work on Windows-based PCs. NBC cut its ties with Apple (NASDAQ: AAPL) iTunes at the beginning of the month.

PaidContent writes that eventually, users will be able to freely subscribe to pre-selected NBC programs, which will be sent to their computer right after the first broadcast airing. NBC's plans for the next year may include the ability for consumers to own the content permanently instead of having a file that expires a week after a show airs.

The move by the network, which is likely to be followed by other large content owners, may well be an effective way to break the strangle-hold that iTunes has on digital content. NBC did not want Apple to set the pricing for its shows. Offering the content for free would seem to trump that.

Steve Jobs will not be able to check out the new competition. The offering will not work on his Mac.

Douglas A. McIntyre is a partner at 247wallst.com.

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Last updated: November 07, 2009: 07:01 PM

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