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The Times reports that the number one supplier of TV content to the iTunes Store told Apple yesterday of its decision. NBC supplies around 40% of iTunes video downloads, selling programmes such as The Office and Battlestar Galactica.

Apple

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is believed to have refused NBC's demand for more restrictive DRM and a more flexible pricing structure that would include the "bundling" of content together in promotional packages.

Both parties declined to comment, but are said to be continuing talks "free of acrimony".

Whether NBC really intends to withdraw or is merely bluffing remains to be seen, but there are parallels with Universal Music's recent decision not to renew its long-term contract with Apple, but to supply music downloads on a more ad hoc basis. Universal quickly denied that it had any plans to withdraw its music from iTunes.

NBC is not among the five TV companies which this week began selling shows through iTunes in the UK.