By Kenneth Li
Reuters

NEW YORK (Reuters) - NBC Universal has decided not to renew its contract to sell television shows on iTunes, becoming the second major media company to challenge Apple Inc’s (AAPL.O) dominance in digital entertainment.

Apple said on Friday that NBC had demanded to more than double the wholesale rate for each show, which Apple said would have forced its iTunes online store to raise what it charged consumers to $4.99 per TV show episode from $1.99.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” Eddy Cue, Apple’s vice president of iTunes, said in a statement.

Apple has decided not to offer shows for download from NBC’s upcoming season beginning in September, including popular series such as “Heroes.”

A spokeswoman for NBC Universal confirmed it will not renew the iTunes contract and declined to elaborate.