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NBC has struck a deal with Microsoft’s Zune online store to show its videos. Previously NBC was using Apple iTunes but due to price differences NBC pulled its video contents from iTunes last December.

Microsoft announced that it will start selling television programs at the Zune store for viewing on its portable music player. NBC is among the broadcasters supplying videos for the service.

Other providers of the video are Comedy Central, MTV, Nickelodeon, Turner Broadcasting and VH1.

It will cost US$1.99 each and users will be able to choose from 800 episodes.

The price is the same as Apple charges but NBC wanted to increase its wholesale price of each episode by so much that Apple would have to charge $4.99 per episode which was unacceptable to them.

NBC wanted to offer customers a variety of pricing options, including bundles of programs for set fees.

Microsoft’s flexibility over price was one reason NBC wanted to sell its content through the Zune store.

According to Julio Estrada, general manager for Zune Social:

We have worked closely with them around flexibility and protection of IP. Zune will control the price of the episodes, but we’re open to understanding which episodes can be priced lower and how we may introduce premium content which may be priced higher than $1.99.

Estrada also hinted at potential future services to be offered through the Xbox.