Steve Jobs in 2003 at D1 the First D All Things Digital Conference (Enhanced Quality)

ladies and gentlemen Steve Jobs [Applause] [Music] Oh morning nice chair yeah pretty good huh um so first of all thank you for coming thank you for inviting me you're not a habituate of these conferences and so we really appreciate you being here you were there at the beginning of the digital personal computer revolution you and Steve Wozniak developed what was the first really successful personal computer for the mass market and that was 26 years ago I think 77 is bramble - and you've uh you've stayed with it all this time in different ways different formats you run the most digital movie studio there is with the Pixar and I have to say that they have a new movie coming out in a couple of days but we do you think we are in the arc of the story of the PC the internet the whole the whole digital deal well the personal computer has been a pretty amazing thing in that it's morphed into these different things over the over the years in the decade so first first it was a hobbyist tool and the reason the Apple 2 was successful was because we saw that for every hardware hobbyist that wanted to put a hardware kit together there were thousands of software hobbyists that didn't know how to do that didn't have soldering irons but wanted to mess with software and so we we sold really the first ready to go personal computer and that's what it was for the early days and then Bricklin and Frank's Frankston Frankston is here I know I saw him last night invented the first spreadsheet and that kicked off something entirely new and before long the personal computer was being welcomed into business and the whole productivity the age of productivity began and that's what really fueled a lot of the growth but then as the personal computer sort of saturated that particular function people were speaking of its Plateau and even its demise in the in the early 90s the internet came along and all of a sudden the the next great age of the personal computer started and everyone replaced their personal computers with faster ones that could run these new web browsers and everybody got on the internet and the industry was very healthy for a while and then you know starting in early in this decade that had plateaued and everyone was saying the personal computer with past its prime but we we feel very strongly at Apple that there's a third grade age of the personal computer coming and it's it's where the personal computer becomes sort of that your digital hub and we articulated this you know three years ago and a lot of people have said the same word since then but but but hardly anybody's delivered on it but it's slowly starting to happen I think we've tried to deliver on that as well and and people say well what's that mean and you know how many of you have a digital camera right well you can't do anything with a digital camera without a personal computer there's nothing to do with it I mean you look at the pictures on the tiny little display on the camera that's about it so your pictures are in your computer now anyone under 25 their entire music libraries in their personal computer now it's not in CDs and some bookshelf in their living room it's on their personal computer and hopefully on their iPod and so it's becoming the hub for your photography your movies your your your music obviously and and it's really your your you know it's it's it's the number one high speed connection you have to be outside world in terms of data so I think it's it's starting to become integral to our digital lifestyle and you think it will always remain there at the hub or do you think and this perennial talk about well the television will be a a hub or a point of contact with your digital stuff things like the iPod he makes a music player do you guys know that the iPod why couldn't that have its own Wi-Fi connection to the Internet mm-hmm and not require you to use the computer well it can but a personal computer I mean it's very basics it's got a really big hard drive in it it's got a really big display it's got a really big keyboard it's got a really fat pipe to the Internet and it's got a reasonable processor in it that can run really big applications so the iPod might be great it holds all your music but we see it more as a satellite device because you'd never you you couldn't really do a music store on it as an example because the music's Bernese just more screen real estate and these things fight each other so if you want to compact then you can put in your pocket unless there's a breakthrough in foldable displays over time or something like that it's gonna be hard to really browse a music store and find the music you want on the ipod itself even if it has an internet connection so since you've been back at Apple it's been about I think what six years ninety seven and you came back six years this fourth of July you've had quite a few hit products and gotten lots of critical praise not only in terms of the Mac but the iPod also being a generally regarded as by far the best music player but the market share for Apple and there's a whole history of reasons why Apple doesn't dominate the field we won't go over that but the market share for Apple has not really increased dramatically so why you're doing great products you're actually or you're much more price competitive in some cases you're in my and my research you're actually priced more aggressively than a Windows counterpart in some of your model how come you're not doubling your market share or whatever well we asked ourselves that a lot if you if you get a little surgical about it what you see is that the markets that we serve we serve many markets but but the three primary ones are a consumer education and and the creative professional market the problem that we've had is that our creative professional market you know graphics houses ad agencies etc etc have been in the toilet for the last several years more so than the general market has and so our creative Pro markets been suffering secondly education we've made some mistakes and as you know education is down the last three years so some of your rivals are have gained ground on you in education right well actually some of our rivals have Grant gain ground primarily by taking sure away from their competitors but we've made some mistakes too and so two of our three markets are down are depressed in the consumer market we've more than doubled share in the last year really yeah really what are you so sharing the consumer more uh it depends who you talk to but it's somewhat I'm talking to you it's our share of the consumer markets between five and ten percent okay good yeah our stores have been phenomenal we have almost 60 retail stores open which were the best buying experience for personal computer on the planet and and doing quite well we've had over 15 million people 15 million visitors through them since we opened the first store two years ago a lot of people think given this string of great products you've done that and given the iPod that it's a portable device that you know you should be making a PDA issue people is constantly rumors you're gonna make a PDA you're gonna make a tablet you're gonna make a cell phone could we just touch on those sure because there's a lot of excitement around those generally in the industry so let's just start with say a tablet are you gonna make a tablet what do you think about the tablet no plans at the current time to make a tablet no you saw your old friend Bill Gates up here being really enthusiastic about it last night what do you think about it well I mean I think it's great that they're trying but but it turns out it turns out that I would characterize a little bit differently than bill bill characterizes is a device you can take to meetings and take notes well I see people with notebook computers at every meeting I go to taking notes so I don't think that's what it's about I think it's about handwriting input versus a keyboard and handwriting recognition has been tried over and over again and even when you get it really good it turns out Apple believe it or not after all that pain that they went through with Newton has the best handwriting technology in the world now it's way better than anything else really yeah you know the problem it doesn't matter it's really slow to write stuff you know you could never keep up with your email if you had to write it all out and so it turns out that people want keyboards I mean when I started in this business that one of the biggest challenges was people couldn't type you know and and and one day we realized the death would eventually take care of this and so people know how to type now and and they will if you if you if you do email of any volume you've got to have a keyboard and so if you've got a device that's up I don't know bill said it's really easy to do a handwritten email last night you know so we look at that we look at the tablet and and and and and we think it's gonna fail you think the tablets gonna yes we do what about the tablet is a reading device because my own feeling having tested it I didn't give it a great review but what I said was and I believe this it's actual strength in a funny way is that it's a much more natural way to read like a long web article or a long word document or PDF file or something then then a clamshell it it's really true if you've got a bunch of rich guys who can afford their third computer you know they've got a desktop they got a portable and now they're gonna have one of these to read with that's your market ok people accuse us of niche markets [Laughter] what about a PDA I mean I would point out for those who don't have an iPod that actually they have an even though it's designed hardware and software as a music player you can put your calendar and your contacts on your iPod now and you've even improved that a little with the new ones what about a PDA well you know my email address is out there and so I get an email every time somebody you know goes to the bathroom in Iowa and and we've got I get a lot of emails about about that over the years we have tremendous pressure to do a PDA and we thought about this a lot and what we what we decided was that we believe that for everyone using it for all the universe of people using a PDA 90% of them really just want to get the information out only 10% want to do major input on this thing and so if what they really want is a repository for data that they can get out occasionally putting in a phone number or correcting an address we believe the cell phones are gonna do that and we saw that several years ago we just see that the curva cell phone's going like this you're gonna have to have a phone in your pocket so that's gonna have to be the device that carries this information and we started working rather than doing a we didn't think that we were gonna be successful in a cellphone business because of the carriers I mean we're not the greatest at selling to the fortune 500 and there's 500 of them 500 CIOs that our offices you have to go through to get to the fortune 500 in the in the in the in the cell phone business there's there's five file in this country so you know we don't even like 500 we'd rather run an ad for millions of people and let everybody make up their own mind you can imagine what we thought about five and so we decided we might not be successful in that business so what we've done instead is we've written I think some of the best software in the world to start syncing data from your personal computer on to your cell phone anyone who's used a palm knows that that there are two great revolutions in the palm the one was the you know the the focused function and form factor but the second was the dock the cradle that allowed you to sync it to your PC so that if you lost your palm you didn't lose your life you could buy another one stick it in there and refresh it and often off you go and and so we believe that that mode is what cell phones need to get to that's the mode we copied for the the iPod as an example where your personal computer is your hub all your data is safe and secure there you can enter it on a big screen with a real keyboard etc etc sync it to your phone you can still make changes on your phone it's a little painful with that small keyboard but you can do it on occasion and yet for 90% of the people plus they're gonna be able to get all the information they want out of that phone and that's the direction we see if it well so are you working with the with with Nokia and Motorola and the other cell phone handset makers absolutely trying to make this happen absolutely cuz really unless you're talking about a combo like the trio which is it has a lot of PDA DNA in it right a regular phone the calendar and the and the address book and there are terrible yeah I know they are terrible but they're improving at a fairly rapid rate right now so I think they're gonna get there so all of your fans who are predicting a PDA predicting a right we chose instead to do the iPod instead of a PDA that was our that we put our resources behind that what about how many iPods have you sold by the way well I don't know as of today we'd sold 700,000 a few months ago and the new ones on fire so I suspect we'll you know probably sell our millionth iPod sometime later this summer what's the next step for that is it video is it photos I mean do I why don't why shouldn't I want to they're already a couple on the market that I can show videos and photos yeah you know we clearly got stuff like that in the lab too and and it turns out that you know watching movies on a tiny little screen is really not very much fun and and you again get into that that fight between form factor you want to put in your pocket and and you want a giant screen to watch movies on so right now the best way to watch movies on a portable device is to buy a personal computer and stick a DVD in it and that's what that's the most popular way to watch DVDs when you're away from your television and I'm not convinced that people want to watch movies on a tiny little display they carry around and so photos your family photos photos are nice what you really want to be able to do is plug it into the television when you get somewhere and show somebody your photos on your television that kind of stuff will come over time but one of the night paraphrase Bill Clinton when I when I am in meetings like this and just keep saying it's the music stupid it's the music it's about music people have what's interesting is that you know putting photos on and I put putting movies on right but these are speculative markets will people want to watch movies on a little portable device who knows somebody will try we'll find out but music musics been around for a long time you know good tens of thousands prior to 1977 I prior to 1977 and it will be around for an awful long time and people have had portable ways to listen to music for a long time and it's huge so this is not a speculative market it's a real tangible market and I think if we can bring some value to that market then we'll succeed so how come you were the you were the company that was the latest the last to figure out mp3s and music that's interesting it's so Universal and so obvious I mean we maybe weren't quite the last but we were certainly near the last and the reason was was because we were focused on video what happened was Apple invented this technology called firewire and they licensed it to all these companies and all the Japanese consumer electronics companies licensed it put it in there Digital new generation at digital then new did generation of digital camcorders and the only company that forgot to put it in something was Apple so we decided to to put it in to the one of the early imax and and we we got some video editing software written and we were very excited about that movie I'm moving exactly so the idea is you plug your camcorder into the computer no cards no nothing it was pristine digital quality movie just appears and you can edit it yes and you could and a mere mortal could edit it without reading a manual and so we came out with iMovie it was a really big hit but then what do you do with your movie you put it back on the camcorder and and you know you can send a tape to you know your friends but they might not have a camcorder to play it so we clearly saw that the the the the brass ring was to be able to write a DVD that you could send to you know your friends or grandma or whoever and we pioneered the the drives that could write DVDs and we worked with pioneer who was way ahead of anybody else and we wrote that most the software for that and we wrote a software package called I DVD which could you know make DVDs and we were the first ones out with that and we were so focused on that that this music thing happened around the side and we weren't paying enough attention to it but we finally you know finally got hit over the head with a brick and and and saw that it was happening and then we we came on fairly strong we put CD burners in almost every machine we wrote iTunes which you know some think is the best jukebox software in the world and and that led us about you know in less than a year to the iPod so we came on pretty strong when we when we came on and some people in the record business actually didn't realize you were late they thought you were leading the charge to stealing music because of your ad slogan at the time right right we ran an ad we called a concert and the slogan was ripped mix burn and it turns out you know you laugh and there were both there were billboards and said that right well you know we spend lots of money on this magazine covers magazines billboards and TV commercials and it turns out what rip means if you if you know young people to do this is the word came from ripping the bits off a CD and putting them on your hard drive that was where that phrase came from which means you have a physical CD right theoretically yours and you rip the bits off and you put them on your hard drive some industry executives who did not have teenagers living at home especially some in Hollywood thought rip meant Ripoff and they did not do their customary homework and they they they they you know some of them even went to Washington and testified and held us up in effigy but in reality what it meant was get CDs and put them on your heart right so now you're in the music business right I mean three weeks ago you you announced what I think is the first usable attractive legal music service for downloading songs you're a computer company why are you in that business what's the deal there well again the definition of what a computer company is is morphing a computer companies a company that cares deeply about digital photography now a computer company is a company that cares deeply about digital moviemaking me we between imovie and a pro product we have called Final Cut Pro we're the largest video editing supplier in the world now we're the largest Pro video editing supplier with Final Cut Pro much bigger than avid now and you know our stuff is used by more consumers than anyone else so we care deeply about video editing and we care deeply about music and and as you know you know Napster and Kazaa hit the music industry like a tsunami they didn't know what hit them for a few years and and you know that everybody's threatening to sue everybody else and everybody's at war with everybody else and we looked at this and we thought gosh there's got to be a middle path out of us and when we did the iPod we tried to walk a middle path we said you know this thing could be the coolest thing ever invented and it could also be a theft shuttle and and and we're optimists we're we believe that 80% of the people stealing music don't really want to steal music we think they'd rather be legal if somebody offered them a competitive compelling way to be legal and we felt that that most of people using an iPod really would want to use it in an honest way so we put software in there that means that makes it so it's not so easy to make it a theft shuttle for a normal honest person you could say that you crippled it for an honest person because it's perfectly legal to take your music from an iPod and move it from one of your computers to another there's nothing illegal about that we didn't allow that we crippled it in some ways to try to walk that middle path everybody has both sides have to give something to walk the middle path and we did we made it so that it will only sync with one version of iTunes so if you take your iPod over to your friend's house it'll put all their music on it but it'll take yours off if you take it back to your house it won't put their music on your computer it'll put yours back on and take theirs off unless you download what are plenty free utilities if you want to get around it you can with all this talk of DRMs and this and that I guarantee you there's nothing that can't be hacked the question is will it keep honest people honest well give them a nudge in the honest direction and I think we did walk a really good middle path with the iPod I think a lot of people have held it up and said hey this is pretty good on both sides of it when you did that we were already thinking ahead that you wanted to do deals with the labels to do your music service it had crossed our mind we have started yet so you're able to say to them look how we constructed the iPod yeah but as bill said last night I mean Apple also is one of the few companies in our industry that has a lot of intellectual property you know I mean other companies don't but Microsoft Apple we have a lot of intellectual property and software looks a lot like music you know bits on a disk to steal we don't want people stealing our software either so about three weeks ago you launched this iTunes music store and there are a lot of things that differentiate it I think from the other services but one of the big ones is that you got better digital rights from the labels right so that your customers at your store can do more with the songs they buy they can actually buy them instead of renting them and they have some freedom to do it how did you do how did why did they do that for you was it because you were in the movie business was it because you were charming was it on I mean because they figured the Mac is only a tiny part of the world it doesn't shatter you know you got to step back even a step further one of the things I learned at Pixar is the technology industries and the content industries do not understand each other in Silicon Valley and at most technology companies I swear most people still think the creative process is a bunch of guys in their early 30s sitting around on an old couch drinking beer thinking of jokes they know they really do that's what that's how televisions made they think that's how movies are made and I've seen from Pixar that couldn't be further from the truth the folks have done the creative side were as hard as any technology folks I've ever seen in my life they're just as disciplined the process as just as as as difficult and disciplined as an engineering process is and the contrapositive true to which is people in Hollywood and in the content industries they think technology is something you just write a check for and buy they do not believe that they're they don't understand the creative element of technology they don't understand that all technology's not created equal they don't understand that this stuff is is created by people working extraordinarily hard with passion just like the creative talent that they have and so these are like ships passing in the night I mean one of the greatest achievements of Pixar was it brought these two cultures together and got them working side-by-side and so when we looked at the music industry most of the folks in the tech industries thought the record companies were completely brain-dead you know why haven't they jumped on this new business model why don't they understand where things are going well it turns out that record company's the most important thing they do is not distribute music that's not what they do it's not even market music it's picking which of 500 people are gonna be the next Sheryl Crow that's what they do and some of them do it quite well and it's an intuitive process there's not enough data but they have to pick and they have to decide who to invest in and they manage a portfolio and some of them do it awfully well and if they don't do that well the rest of it doesn't matter right so that's what they do well and people that do well at that end up running the music companies the good ones anyway and so it's it's not surprising that they didn't understand Napster it's not surprising that they didn't understand that distributing their content over the Internet was the next big wave and we went to them when we talked to them about this and we made a lot of and they told us we were all wet this was a few years ago and we made a lot of predictions we said we think music net and press play are gonna fail and here's why and this and this and this and this and they said well you're all wrong get out of here and about nine months later we started to get some phone calls we went back to them and they said you know talk to us some more because you guys were right about some of this stuff and we started talking to them about this middle path and about how their content needed to be protected from getting back onto the internet for honest people but their real competitor was Kazaa that was their competitor and Kazaa was offering unlimited CD burning Kazaa was offering an ability to have your music where it never went away if you stop paying your subscription fee Kazaa was offering the ability to put your music on a portable player and if they did if they were not willing to offer the user those kinds of rights they couldn't compete with cos off they might as well just put a big sign up says Kazaa this way and and and we they got it these are smart guys and I think one of the things that that appealed to them about Apple was that you know we do have a smaller sandbox than the whole market so if the thing went radioactive it would only go radioactive on you know 10% of the market and another thing I think that appealed to them was that we could do the whole thing you know we made the operating system we could write the applications we made the computers we made the iPod and we could we could control the whole thing I think a third thing that appealed to them was we were a large company with a lot of money in the bank and if we did something wrong they knew who to sue hard to sue cos are they they're trying hard to sue cos are hard to sue some of these small companies there's nothing there well I know you're very shiny usually don't like to do demos and you're reluctant to promote Apple products but everybody's heard about this store and I'm betting that most of our audience has never seen it because for some reason they may not be Mac users I'm you know how many of you have never seen that iTunes music store if you could raise your hands so would you give us a few minutes five minute demo I'll be able to get it so one of the most important things is is in the iTunes music store you get to buy your music people have bought LPS they bought cassettes they bought CDs and they want to buy downloads people don't want to rent their music even the subscription services now if you want to download on top of the subscription you've got to pay money you've got to pay 99 cents or 49 cents or whatever it is and to burn a CD most of them charge you every time you burn the same track see so if you have your favorite song you pay $9.99 a month plus you pay 50 cents to download it every time you want to burn it on a CD so if you want to put it on 100 CDs you're paying a lot of money for that so people want to buy their music and own it and that's what the iTunes Music Store lets you do second thing is you can't do this with a web browser web browsers are really slow they're not very interactive and so you have to have a client application if you're gonna have a client application the last thing you want is for it to put your downloaded music in some random folder somewhere that you got to go dig out and drag into your jukebox so we decided to build it right into the jukebox itself so here's iTunes this is our jukebox and what we did was we put over here Music Store and you push this thing and boom that's the Music Store you're in it when you download music it puts it right in your jukebox so with the screen we're looking at now this is coming from a server this is gonna have a server at our screen what songs you have on your hard disk yeah these are the songs I have on my hard disk and I own them and this is our jukebox and you can just you know play one and you can go to the music store now here's the homepage of the music store and what it features is it shows us our top song song downloads and top album downloads over here and so I can get two songs over here it shows us a few featured songs new releases new released Tuesday happened yesterday this is when the music industry releases their new songs you can look at those here's some featured artists over here and so let me just go through a way of finding some music you can go over here and say you know your top album download Jack Johnson you know here's an album of his and in Jack Johnson we can you know just go to a song and play it now this is a really big deal there are free 30 there's a free high-quality 30-second preview of every song on the store and it turns out 30 seconds is a long time for a song it's like 20% of a song and so you can listen to what you might want to buy and you move all around and every single song has a preview we also show you that you know the top downloads of that particular artist so we'll go to another album here just click on these things and up on the top here it shows us the breadcrumbs the home page rock Jack Johnson and here's this album I can go to Jack Johnson if I want and will go to his artists page right here here's an artist page for Jack we can go to his website we can see all of his albums he's only got three albums out he's a young artist we can watch a video that he's got right here we can stream a video if we want to okay but the heart of this is that you can just buy the songs when you want them right well let's yes let's go back and find some songs some other ways so we can go to an album here we can say you know here's an old Fleetwood Mac album and we have some exclusive tracks from artists that you can't even get on CDs so these are some some Kretz from Fleetwood Mac that you can't even get on a CD and to buy one of these tracks all you do is you push by song I have to type in my account here whoa okay okay this should work try one of your other passwords I only have one yeah try Yahoo I'll get it okay anyway you'd hit that download button and you download the song Wayne you know a password should I don't know no such such as life so let me go back to the home page yeah what's that jingle oh okay great hahaha everybody got that down great so I push a button it connects and on downloading the song so now that you can't take it back you click that's right down it we have one click downloads we have an online store that does between a billion and two billion dollars a year we have one-click shopping we're the only other folks in Amazon the do we have extended that to one click download you click the button bills your credit card downloads so if your seven-year-old gets on this and starts clicking yeah you're hosed well you have a lot of great music ok and so now I can go to my purchase music playlist and there's my song and I've got you know album art here and whatever else I need now that song now is on this Mac that's not hard on the hard disk I own it nobody's ever gonna take it away from me if I quit paying a monthly subscription fee I can burn as many CDs as I want I can put on as many iPods as I want I own it and you can put it on how many computer up to three max no windows computers not yet ok but we're gonna have a version of Windows by the end of the year and what if I upload this to Kazaa it will only play on those three Macs so somebody else can download it but won't be very hungry very yeah ok so now let me go search for some music I can search for you know soak up the Sun and I can just type it in here and boom there's that album office Sheryl Crow I got the song excuse me and I can go back here and again go to Sheryl Crow's page I can go to that album I can see all the the music that she's got pick any album go there plenty of the songs I want now there's some big artists you don't have on here yes there are I mean you have what two hundred thousand two hundred ten thousand something like the two hundred yeah we have over two hundred thousand tracks we don't have the Beatles yet some of the big artists have carve-outs and their contracts that don't allow the labels to distribute them online we visited with many many artists personally fortunately most amuse Max and they all have iPods and so they were very very trusting of us and let us put their music on here but we don't have it all we're getting more every single week I want to show you one other thing on here that I like just um you can type in a song whoops you gotta know how to type one for the road it's an old song one for the road and it's just amazing when you start getting these large music libraries what you can see in here like here's a bunch of versions of it here's Willie Nelson Ella Fitzgerald [Music] Henry Belafonte peridot Billie Holiday that Midler you name it and of course Frank Sinatra and if you wanted these you just click that you just click that Buy button and you own them and one last way to find music is browse which we've never seen before on anything online which is all the genres here so you can pick you know I want to rock and roll you pick the rock genre and this lists all the artists you find anyone and you know you just pick anyone and shows you all their albums you can pick all their albums and see all their songs right here or you can pick any album and just see the songs on that album and can we try one more thing sure for some reason that I don't understand Cara Swisher's favorite song is Copacabana by Barry Marilyn Manilow you have no idea how hard it was for me to stop her from playing that as one of the songs three Spelling's just put Manilow maybe and you find it I don't know just wondering if you have ma ni l o W is it a big seller on the Apple Store I wouldn't know and so we can sort by song and we can go down here and he's got 195 songs on here and there's a Copacabana [Music] am i right I mean you know there it is great yeah that's that's great thank you I just take some questions all right we have time for some questions a few please come to the mics well one of the other things I wanted to say about this it's really fun is of course we've gotten a lot of questions are you going to sell videos this way and maybe someday videos will be in the future especially when we all get more bandwidth to our homes but one of the great things about music is that you can deconstruct it down to these little 99-cent morsels and at $0.99 you know you can buy three songs for the price of a Starbucks latte and so it's really it's kind of wonderful you hear something on the radio you get into work you buy it let me let me ask you one more thing before we go to the questions this looks great and you have demoed it before I think we could tell but everybody's gonna have this right by the end of the year you're gonna have it on Windows our friend Rob Glazer who's here he has a music service he's going to have it on Windows not the kind of thing they have now but something like this I read in the Wall Street Journal that Amazon's gonna have it Microsoft is trying to do it so you you no longer you you know you look cool you look great around the covers of magazines you get bigger articles but that's a six month phenomenon right at the end of the year you're just one of the guys everybody has it well that's assuming it's really easy to do and what we found maybe these guys were a lot smarter than us they probably are but we found it's pretty hard to believe that I don't know we'll find out we think it's really hard to do it's really hard to to get the labels to give you the rights that you need and I don't see them sprinkling those rights around everywhere letting a thousand flowers grow quite yet it's really hard to write software you know and do a good job at it so you know this is not something that can be done well on a web browser it you need a client application and you need a jukebox you've got to own a jukebox so that kind of cuts it down a little bit we got music match their music Samuel has a Juke nil and Microsoft and others so it gets you down to a handful of players and it's an awful lot of work and then you might say you know it'd be great if you could put on portable players and you know you might want to put it on the most popular portable player which is an iPod and so you know we're we like to sell iPod so we're really open to working with those folks but you know so far very few of them have even come and asked that and and so we'll find out we'll find out but I think it might be a little harder than it seems Yes Man you know I that the last part of that question is exactly right I've I've I've been in this industry almost 30 years and it's speech has always been five years away it's been constant time to completion just moving along five years away and most of the really smart people in speech I know have gotten out of the field it's it's like nuclear fusion a lot of bright people went into it and and and people now think it's a ways away now you can do you can do adequate speech today but it means you're correcting a lot of stuff if you just have you know even a 1% error it drives you nuts because it turns out you can speak a lot of words in you know in a five minute interval so it's got to be very accurate and so far no one's come up with the technology I mean apples got a very we got a speech group working on stuff Microsoft has a group a lot of great works being done in academia but it doesn't look like it's gonna be real any time soon I wish it was different yes sir as the equivalent of the music store um you're correct Apple was the first computer company to ship really a low-cost Wi-Fi device with with airport three three and a half years ago maybe three and we've sold a lot of Wi-Fi products we were the first ones to ship 802 11 G at the beginning of this year which is a 54 megabit per second version of 802 11 which is come backwards compatible with B and G is clearly going to be the next standard a lot of folks made a lot of noise about a but a is a is gonna fail and G is going to be the the next one because it's compatible with everything that's out there an a is not and we're shipping a whole lot of that so you know we're building it into all of our computers we have for a few years now and we've built it into the software so that it's completely seamless now and that's what we're doing I think like any network it'll just disappear and it'll just be there for you except in this room except in this room much of their growth has come from essentially unwanted bundling for a long term time we bottomed out on the head 13:14 song to LuAnn she really wanted and the rest you really wouldn't buy on an olive price basis if you look at the margin structure in that business versus what what will happen in all of our universe we can buy things individually huh it seems like there's a huge leg down yet in margins for that business if you're successful and if the industry is successful in this what happens with EMI teetering on the edge of bankruptcy today what happens to the industry or a courtesan just radically well you know that is the conventional wisdom but I don't think it's true and and and it turns out you write a lot of the music companies and most of the music companies are losing a lot of money right now what we found so far in in four weeks of operation is that over half the tracks we saw we saw there were three million tracks over half the tracks we've sold were bought as albums and that amazing making it so easy to buy a 99-cent song over half the tracks we've sold so far have been sold as album and what do all these costs typically they we we made the song pricing uniform at $0.99 the album's flowed a little bit based on what we buy them for from the labels so they're $7.99 to 211 $12.99 but almost all of them are $9.99 and don't you think maybe that this high rate of album purchase is just because you're not the very beginning of this people are kind of think in terms of albums but but as he said maybe over time you know it'll it'll be lower and lower and lower and people will just buy all I think the answer is nobody knows but I my personal belief and this is just a guess is that the labels will be lowering album prices over time to keep enticing you to buy the albums and that a significant share of the song sold will continue to be albums the other interesting thing that we've learned though is is that is that the record labels you can only buy about 20% of a catalogue that a record label owns right like if you take Warner great record company you can only buy about 20% of their songs why is that because the rest of them don't sell enough for the record stores to carry the CDs they won't carry the inventory so 80% of music you we'd never heard over the last you know few decades it's in a it's in a vault somewhere I hope but it's not on the record store shelves well you don't have inventory like in an online store all of a sudden that catalog can open up and you can find stuff you've never heard before and I expect that the catalogs are gonna be worth a lot Tim I'd be interested in your response to a question that asked Bill last night but if you were 17 years old I'm starting all over again what would you put your bets on intellectually I mean when I was 17 years old I didn't imagine I would be in technology so I don't know but intellectually the most exciting thing to me is is you know Biosciences has is Apple thinking at all I'm using this architecture of these distributed devices having centralized information making that information more personal in that area of medicine or Biosciences or biomechanical devices anything at all to basically help individuals in that realm we haven't so far a really really good old friend of mine really smart person I know suggested that to me just yesterday and you know I certainly think it's something our industry should take a look at but I don't think there's a lot of work going on today always the hardest decision I think anybody leading an organization makes us to let people go and at the beginning at Apple it was pretty tough Apple was was in worse shape than I thought when I joined I just come back temporarily at the beginning and the individual contributors were unbelievable I asked a lot of them why in the heck did you stay and and they had a phrase that I'd heard several times I said well we bleed six colors but the the folks that were less good was the management and and we had to had to change management of the company and so we had to let people go and and you know when you're when you're a little younger and you don't have a family of your own maybe it's a little easier you don't think about it as much but when you start to have a family of your own and kids you realize that the person you're laying off Scott to go home and tell their family they don't have a job and it's pretty tough it's pretty tough so that was I think the hardest thing I've had to do in the last many years now fortunately you know we got that out of the way in the first year and and our competitors have laid off tens of thousands of people in the last two and a half years and we haven't we haven't had no big layoffs and we decided to innovate it innovate our way through this downturn and so we're turning out more products now than we ever have in the company's history but but the first year was very hard thanks very much Steve thank you well [Applause]

Channel: z400racer37

Views: 305,890

Rating: 4.8729382 out of 5

Keywords: Steve, Jobs, in, 2003, at, D1, the, First, All, Things, Digital, Conference, Enhanced, Quality, ipad, imac, mac, Macintosh, Apple, computers, Walt, Mossberg, Bill, Gates, memorial, AllThingsD, Pixar, Inc, Ipod, Iphone, Touch, Sergey, Brin, Larry, Page, Mark, Zuckerberg, Edwin, Catmull, Ellison, Animation, Oracle

Id: oMyZwhzy5hE

Length: 45min 4sec (2704 seconds)

Published: Fri Jun 01 2012

Reddit Comments

[u/FizzyBeverage]

Always interesting to watch some ancient history, and make no mistake, 2003 is ancient in this industry.

That being said, it's going to come down to the content, a rather annoying British guy singing in a car wasn't doing it for most. My wife is a fairly normal, non-geek, Netflix binge watcher. When she read the rumor of Apple's streaming network she said "they got Reese Witherspoon, Jennifer Aniston and Steve Carell on a show? We gotta subscribe then!" Apple is banking on more folks like my wife out there...

[u/OliverQueen85]

Thank you for posting this, u/Liberalization. I enjoyed it!