NBC Picks Amazon Over Apple

SAN FRANCISCO -- Apple (AAPL Quote - Cramer on AAPL - Stock Picks) is not irreplaceable.

Broadcasting giant NBC Universal, a unit of General Electric (GE Quote - Cramer on GE - Stock Picks), said Tuesday that it has agreed to sell downloads of shows such as Heroes and The Office on Amazon.com's (AMZN Quote - Cramer on AMZN - Stock Picks) Unbox digital download service.

The deal replaces a similar arrangement with Apple's iTunes downloading service.

As a result of the agreement, Amazon's Unbox service will offer downloads of NBC's prime-time features the day after they air on TV, including new episodes from the season beginning September.

Some shows, including the new Bionic Woman, will be available for free before the television premier.

The agreement between NBC and Amazon follows Apple's refusal to raise prices that it charges for downloads of NBC programs from $1.99 per download to $4.99. Apple will not offer downloads of new episodes from this season, but will carry existing shows through December.

Amazon will sell downloads of NBC's shows for $1.99, the same price at which they're available from iTunes. The online retailer already sells downloads of NBC Universal movies such as Smokin' Aces.

The addition of NBC Universal TV content to Unbox "further expands our longstanding relationship to bring a robust content offering to the marketplace in a variety of ways that will benefit the consumer and, at the same time, protects our content," Jean-Briac Perrette, president of NBC Universal Digital Distribution, said in a statement.

Amazon shares were recently trading up $1.43, more than 1.7%, to $84.13, amid a heavy selloff in the broader market averages.

Apple shares were also up midday, rising 68 cents to $144.84. Amazon was up 2.19% to $84.51.