NBC shows return to iTunes after year-long feud

A year ago, NBC accounted for as much as 40% of the sales of TV shows at iTunes.

Perrette denied again that NBC had ever sought to increase the price of some standard-definition TV episodes by more than 150%.

"That was largely scare-mongering," he said. "We were looking for flexibility, not to gouge people."

Jobs said that iTunes boasts 65 million users and its video content includes 30,000 TV episodes.

Dennis Miller, a general partner at Spark Capital, called Apple's patched-up relationship with NBC "a case of mutual need, given NBC's library and the ubiquitous presence of Apple's platform."

Gartner analyst Mike McGuire predicted that the slightly increased flexibility that NBC negotiated could encourage its competitors do likewise. "It helps the content guys to create some tiers," he said.

NBC also said that it will offer free premiere episodes of five NBC shows a week before they are broadcast: "Knight Rider," "My Own Worst Enemy," "Kath & Kim," "Life" and "Lipstick Jungle."

Jobs also unveiled the new line of iPod digital music players at the event, including smaller, cheaper and more powerful iPod Nanos.

The display of new products and a rekindled partnership with NBC did little for Apple stock Tuesday, though. Shares fell 4% to $151.68.

Reuters/Hollywood Reporter