CBS says staying out of iTunes pricing battle

By Robert MacMillan

NEW YORK (Reuters) - CBS Corp is happy with its deal with iTunes and won't join a battle against Apple Inc over the pricing of television shows on the online store, CBS Chief Executive Les Moonves said on Tuesday.

NBC Universal decided last month not to renew a deal to sell downloads of its television shows on Apple's iTunes because NBC wanted more flexibility in offering different packages and pricing.

News Corp Chief Operating Officer Peter Chernin last week echoed NBC Universal's call for more flexible pricing.

"We're sort of staying out of the battle," Moonves told a Merrill Lynch investor conference. "We like our relationship with iTunes."

Moonves said iTunes is not a significant source of revenue. "We look at iTunes as much as a promotional vehicle for our shows as a financial vehicle," he said.

NBC Universal, which is controlled by General Electric Co, is the top supplier of digital video to the iTunes music store.

NBC and News Corp plan to debut an advertising online-video joint venture called Hulu in October. Moonves said that CBS was invited to be a third partner, but declined.

"I don't like joint ventures per se," he said. "I love Peter Chernin and Jeff Zucker. They're both very smart, but I don't like to consult with them on what to do with my programming."