Steve Jobs in 2005 at D3 (Enhanced Quality)

so without further Ado Steve Jobs Steve [Applause] [Music] Jobs welcome thanks so this been a great year for you amazing iPods continued amazing success um but what have you done for us lately I think everyone wants to know what's the next thing from you what do where do you think iPod's going and um well you know we're working on a bunch of great stuff but I can't talk about it okay it's the problem and uh I know it's hard but it's uh there used to be a saying at Apple isn't it funny a ship that leaks from the top so uhhuh uhhuh okay then I I don't get it um well let's talk about let's talk about a few a few things about the the iPod you now have iPods uh that start at $99 and go to like $450 or something like that and for most of it it's like in $50 increment increments um and you've maintained a very strong market share I think uh quite a long distance from the introduction of the thing which is unusual in consumer electronics but people have got to catch up to you sometime right I mean it's pretty unnatural for a market to be dominated to this extent by one compy and there's like zillions of other companies and the stuff is getting better and better that they're putting out there so is this the year it all collapses well it could congratulations you know I mean there are companies that that have managed uh to hold on to pretty good market shares a you know colleague of mine in this room runs one of them and so I don't know that it's inconceivable that we can't but we're you know we're focused on putting out the best products and the market sh for iPods has actually risen uh over the last year it's gone up and we' you know had unbelievable competitors so um what can I say we're focused on on on putting out the best iPods we can our competitors are trying to copy us and and uh some of them are you know getting a little bit closer but uh we we've got some pretty great things in the lab so I think when you know when people see what we're doing they might be pretty pleased with it well can you give us an idea in areas video for example something you about on stage last well let's talk about you've said on the stage that you didn't think video and a small device like that made sense you're you're always fighting um you're always fighting uh uh things that are opposed to each other so as an example let's take the PlayStation Portable right great game machine uh but it's not such a great music player and the you know there's many reasons for that but the biggest reason is it doesn't fit in your pocket right so you've got you know games want nice big screens music players want to fit in your pocket and you have to pick one and optimize for it and the the second thing you do will certainly be suboptimal maybe you can do it but it's suboptimal and so you can do video on these devices if you want to uh but but the things that are suboptimal about it are the screen size so it fits in your pocket and the battery life and things like that and um you know the the fundamental problem here is that headphones are a miraculous thing you you put on a pair of headphones and you get the same experience you get with a great pair of speakers right there's no such thing as headphones for video right there's no there's not I can carry with me that I can put on and it gives me the same experience I get when I'm watching my you know 50-inch plasma display at home and you know until somebody invents that you're going to have these opposing constraints well they have those huge goggles you can wear oh they're but they're lousy but you never get a date if you ever wear them right so so um let me ask you about another kind of iteration on iPod which is uh wirelesses you uh I think four or five years ago now you probably remember exactly came up with this um phrase digital Hub the Macintosh or we could expand it you didn't but I might expand it to say the PC in general the personal computer in general is this is the Hub everything kind of goes through it everything plugs into it why why would the internet out there and available wirelessly shouldn't I be able to to have an iPod type device that avoids the need to go through uh a PC or a Mac well th those are two questions number one is is should we integrate Wireless networking into an iPod someday and yeah maybe that makes sense again you got constraints Wireless networking like 80211 takes a lot of battery life or takes a lot of power so you you have battery life you want your player to last as long as possible and you've got Wireless networking which takes a lot of power but that's not the heart of the issue the heart of the issue is that when you're in a music store and you want browse music and stuff it's really nice to have a screen that's you know bigger than that so you can see a bunch of things at once right it's the same issue you're talking about with the video it's yeah same issue you want a nice big screen so you can see lots of music you can pick out what you want versus a tiny little screen and again you want the screen as small as you can so you can put it in your pocket so actually discovering and buying music uh on a computer and and downloading it to the iPod in our opinion is is one of the Geniuses of the iPod and um you can look at changing that and maybe maybe that will happen over time but I think the experience you'll get on a on a device with a small screen uh optimized for putting in your pocket is is going to be far less satisfactory than on a personal computer you may still want to do that uh occasionally but I don't think it's going to ever mean you can not have some other device that is your primary device for buying and C music Sol what would solve that or is it not screens foldable screens you know goggles you can put on I don't know but it's not on the horizon it if that's true what is it you're doing with Motorola to put the iTunes Store on a phone which is after all a small device with a small screen and is that a suboptimal thing or what we're doing with Motorola is basically putting an iTunes player on some of their phones a player not a store interf player and so well initially what we're going to do is you can just transfer music from your iTunes on your PC or your Mac to the phone it's not a bad idea uh the thing about it though is you know and and maybe we'll do some overthe a stuff later but we don't think that that's going to be where the action is I mean all the carriers they're paying more for their phones to add uh you know 3G networks and they're and they're adding video and they're adding you know music playing capability and the reason they're doing this because the phones are going out to the consumers at the same price the reason they're doing this is to raise their arpo or average price per user right and the problem is the arpo is not going up it's not going up people are not no they make money as an example uh with with with putting cameras in their phones right that cost them money they make money when people ship around the photos but they're not sending the photos around now whether that's because up until recently you couldn't send them cross carrier or because the user interface is so crazy nobody can figure out how to do it I don't know why but it's it's not happening so they're not seeing their arpo go up and it's going to be the same way on music they're going to pay more to get these phones with this capability and they're going to try to sell music at two and $3 a song to the phone well it's going to be a lousy buying experience and the music is going to cost two to three times as much as if you buy it on your computer and it's hard to see that their customers are that stupid well well well wait a minute the customers the customers are now paying $299 and even more in some cases for 302 rington you give away you give away and Microsoft gives away and other people Yahoo uh uh 30- second pre previews for free they're charging $2.99 for that and that's because the phone manufacturers have pretty much put their phones in Walled Gardens so you can't put ringtones on their phones Well's not is it the manufacturers or is it the carriers the carriers excuse me the carriers well the car is forcing the manufacturers right so you've got to buy them that way but again and I don't think consu consumers have other options to carry around their music uh not on their phone well then what about an iPod phone which I desperately want please thank you very much it's a hard problem because all right but wait a minute I know it's a hard problem you're a smart guy there there's there's some reason there are some people who say for whatever reason maybe just curiosity you have a little work in designing a phone going on at Apple you know the various rumor sites have said that we're doing everything if you read those things I know nuclear submarines right um but the phone yeah the problem the problem with the phone is that you know as you know Apple Apple's great success story Apple's greatest successes have not been in the Fortune 500 and and part of that is because we're not very good going through orices to get to the to the end users right and so thanks for that so so there there are there are 500 guy men and women in the Fortune 500 CIO that you have to go through right and we've never been real good at that so if you if you look at it and say Apple's DNA is not great at going through or these orphosis to get to the end users then it's even worse as you can imagine please use that word again in cell phones you know because you've got like five of them in the your four of them in the US so if we can't succeed with 500 of them how are we going to succeed with four and it's it's even worse because the carriers now have have gained the the upper hand in terms of the power of the relationship with a handset manufacturers and they're starting to tell the handset manufacturers what to build and if Nokia and Motorola don't listen to them well Samsung and LG will so the handset manufacturers are are really getting these big thick books from the carriers telling them here's what your phone's going to be and that's not the way you work right well it we're not we're not good at that okay so so why not form an mvno in other words your own cell phone carrier where we don't have to put up Towers you just lease it from Sprint or Verizon or somebody you have your own mvno and you can make whatever phone you want yeah it's um it's not clear the endurance of of of those things it's not clear that when an industry uh gets more and more competitive that there's room for a lot of hands in the till Okay so you have said on this stage before that for instance in discussing pdas and why you didn't do a PDA you have said the cell phone is the big deal people you know carry cell phones they do a lot of things on cell phones they go in your pocket your right your dinner companion Bill Gates was quoted recently as saying that the lifespan of the iPod you know the Standalone handheld music player is limited because it's all going to move to the cell phone and in fact you know the same hard disk you used in the iPod mini is now in some Samsung and Nokia cell phones I know that you could put music software music firmware in there and all that plug headphones into it why isn't that true that it's going to move into the cell phone I I thoroughly understand the question and excellent I'm gonna I'm G to have to leave the answer I'm I'm going to have to leave the answer to to to our our you know our actions in the future uhuh yeah all right does that have to do with that ship thing that's the ship thing all you bloggers heard that right now um in that same area of selling music you know Yahoo just announced this new $60 Subscription Service you've you've been you don't do the subscription service but you haven't ruled it out correct I mean right no we're not religious about this we'd be happy to offer subscription service if if if when we we go out and we ask customers is this what you want very few of them tell us that's what they want so there there's there's two ways three ways to look at subscriptions one is not enough people want them two is enough people want them or three is enough people want to at least augment their purchase experience with a discovery experience that you could use a subscription service for the problem is that the subscription Services uh Yahoo non withstanding are are not going to be so cheap now Yahoo went out at $5 a month if you pay for a year uh and that's you know let's just say substantially below their costs and part of the reason they did that was CU they're probably not going to have any customers for the while so they can go out and make a big splash with that but they will raise their prices as they get customers and the music companies I mean we talk to them as you can imagine quite a bit they they love the idea of subscriptions because they want to jack up the price every year yes they look at the they look at subscriptions like the cable industry remember when cable was you know cost x amount now it cost 7x amount so they want to just keep raising prices and right now um not that many customers want to rent their music because they're afraid that when they stop stop paying and you know their music will go away and of course their rights and they don't really know how much the rent is going to cost 3 four years down the road so you know if somebody could come out and say look it's five bucks a month and it's going to be five bucks a month for the next 10 years then that might be more compelling so if you could get a deal with the record labels that would give you some price stability confidence and if we went out and asked our customers and they said sure this is something we'd love to have then you don't I don't think you and your company are are known for basically reacting to to customer surveys yeah well I mean really Steve my sense of it is you sort of do things and then you build markets around them and you know it is true that that we're not driven by that but it's not true it's not true that we don't uh go out and ask our customers to help course correct and and we do I mean we're out talking to iTunes customers constantly and we're out talking to non-itunes customers constantly so we're going to keep our eye on this Yahoo thing and uh you know we got a little betting pool going around the company about how many months it is before they start raising their prices and we'll see what that's like and where's that now uh well it's all over the map yeah so I have five months is mine oh do you now let me before start what's your relationship with the record industry at this point I mean you dominate and yet we just recently had a representative from the recording industry Association in our office and I wouldn't say it was hostile but he he was not like singing your Praises well I think there's two or three things there one is there's this big uh case that's uh you know in the Supreme Court now the groer case and uh they really wanted us to come out and unequivocally support their position that um well the music industry is trying to fight the peer-to-peer networks uh and they're trying to fight them by introducing this concept of intent if you have a product where the intent is that you could um the product could be used to to steal copyrighted content then you could be held liable the problem is intense a funny word and so we didn't want to support anything wholeheartedly where somebody can say well you know when you were dreaming up the iPod one of your engineers had the intent that this could be used to hold pirated music and all of a sudden were liable and we we asked them to see if we could clarify that and we couldn't reach any agreements so we came out very strongly in favor of of of of not of the protection of intellectual property and the protection of copyrighted content but we couldn't go all the way and that's that's uh maybe one of the things are UPS said about uh and the other thing you know is is that the music companies there's there's there's four big ones now and we have really good relationships with most of them but some of them are a little difficult to deal with and as an example when surprise yeah when when we sell a song on iTunes they make more money than when they sell it on a CD and they make more money because they don't have to pay any marketing and they make more money because there's no returns as there is in the physical world uh and so we think that's pretty good and we're selling music you know we've sold over 400 million songs we're selling music at the rate of over half a million song half a billion songs a year now uh but some of them uh you know they they constantly talk about wanting to raise prices and this and that so we're and because you have Market power and you don't want to raise prices that is difficult for them so isn't that I mean aren't some of them just pissed off because they they all all of a sudden you're their one big customer for legal down downloading and you dominate what are you 70% something like that we're north of 70% market share but you have to remember the the legal download music business is still only 5% of all the music that's distributed on CDs uh so it's you know it's not like we're their biggest customer but we're certainly in their top 10 and uh they don't seem grateful when I talk to them they don't seem grateful I don't know what it is well the good news is is that customers are really grateful all right and they're really enjoying it so is there anything new you're doing an iTunes iPod that you can there is yeah I I brought something here to show you today all right so uh let me do a demo uh one of the fun things about iTunes is we keep improving it um uh every several months and uh building in new features and we're going to introduce I want to show you a little sneak peek we haven't introduced this yet we'll roll it out in the next 60 days or so uh how many of you here uh use an iPod let's start there oh great uh bill is your hand up that's okay um and uh how many of you uh know what podcast how many of you heard of podcasting great how many you you actually know what it is okay how many of you have listened to a podcast and how many of you have actually subscribed to a podcast okay great so let me start at the beginning and tell you what this all about podcasting is a word that's concatenation of iPod and broadcasting right put together podcasting and what podcasting is it's um started off as Wayne's World for radio think of it that way right where you've got anybody could make a radio show and put it on the internet and broadcast it out there and anybody else could listen to it and then uh what you could do is because people like to put out multiple episodes of their radio show you could subscribe to a radio show and every time it's updated you'll get the update uh right on your computer Compu and it'll go into your iPod when you syn your iPod right pretty cool or competing music player not just an iPod a few of them out there yeah and so then um what's happened since is that it's not just the Wayne's World uh of of radio but Real Radio is is jumping onto this it's getting very very exciting let me let me read you some stats I have a little thing over here with some some little factoids on it and um so first of all there was a Pew survey done uh last month 29% of us iPod users had listened to a podcast not necessarily subscribed to one but listen to one now the reason they hadn't subscribed to one was because you have to get a third-party app and download it uh on top of iTunes and that does the subscription stuff and it's kind of a pain but uh there's millions of people that have done this and uh there's over 8,000 podcasts today it's kind of interesting there's no FCC regulation because you're not using Spectrum you're using the internet so that makes it very simple it's worldwide you can put your radio show out there and anyone in the world can listen to this and if you Google podcast 6.2 million entries in Google on podcasting which is kind of fun um so again it's sort of like too for radio for your iPod and you just subscribe to these things great so let me show you what it's like this is uh the next release of iTunes called uh release 4.9 and I'm just going to run it right now and what we can do is we go to the music store uh and we can uh this is not a live music this is not the music store that's live for everybody else it's a little private one for us here and there's a little thing called podcast right here you click that and we've got a page full of podcasts right here and so uh some of these are real podcasts others like the Walt one we uh we just made up um so here's one as an example KCRW this is a uh a public radio station just click on it and here are there three latest shows and you can just listen to one or you can subscribe to one you just push the button they're all free and we've just subscribed to this podcast and we go up here to the podcasts and here's you know the latest one this podcast of the treatment is a production of KCRW Santa Monica at 89.9 FM and webcasting at kcrw.com from KCRW in Santa Monica this is the treatment so anyway these well let me just play a little more for and these are just really cool radio shows coming off of very professional radio broadcast we've got clear Chan Channel Infinity Sirus NPR are all doing podcasts now BBC and these are all free these are all free Newsweek is doing podcasts business week is doing them Forbes is doing them Washington Post Denver Post Seattle Post are doing podcasts Philadelphia Daily News San Francisco Chronicle Disney when they wanted to get the word out on their 50th Anniversary did a podcast it's pretty amazing and you have this subscribe unsubscribe these could they I presume they could be used if you to eventually get into selling paid audio stuff or well I you could you could try to sell podcast but the whole phenomenon is so great it's free and I think what we're going to see is an advertising supported model emerge just like free radio here's another one Adam Curry is uh one of the guys that invented podcasting and he has a podcast called The Daily Source let me go ahead and subscribe to that and uh we can go listen to his latest one you know just click on it your daily source code show number 180 something remarkable is happening here radio is springing free of the regulated Gatekeepers who've managed what you can hear since radio was invented it's jumping into the hands of anyone at all with something or nothing to say with $16 Million worth of airplane stra to my ass transmitters then the next Generation radio content in my ears we don't need no stinking transmitter I like to think I'm flying into the future podcasting it's Adam Curry that's right it's show number number 180 and it's Friday everybody thank God power of your intell I've actually had to restart the show three times my Mac has been acting up like a I don't know what's going on I think it's something to do with uh the file system okay how do you how do you control say dirty stuff I mean uh we're going to have an explicit flag on these like we do the music so you can know if it's explicit so could find it easier yeah right okay good um thanks you know we're going to start one here on new music weekly that we've got uh and and let me just show you one of the features so let me go ahead and subscribe to this and go back here and we can just play uh you know new by the way if you want to get an old one you can just go download an old one if you want but usually it's just the latest one you're getting and uh we've got artwork on these things too down here and we can scrub through and you can actually the artwork can change as you're going through these things you even have chapters you know that you can go through and uh you know and you can even click on the artwork and actually go to the music store where a part of a song might be playing if you want to buy it Etc ET the things that she's done with you produce that yourselves that one what's that this one we produced ourselves yeah you produce are you going to produce a lot more or just r no there's the community out there is phenomenal here's one we did for Walt that's uh that's fun we just got Walt to record his column yesterday and again I have a feeling this is exciting stuff I'm to tell you well you know I bet you'll be podcasting your column in the not to distant future I need more work yeah this is Walt Mossberg and this is personal technology from The Wall Street Journal personal technology for May 5th 2005 a guide to using RSS which helps you scan a vast array of websites so Walt's gonna have to up his production value here a little bit but we'll get there I say that that was riveting that that help me and again all these things we'll have a string quartet you know back there all these things sync up with your iPod every time you sync your iPod so you can get this these radio shows you can subscribe to them every time there's a new one it'll automatically come onto iTunes and automatically go on your iPod the next time you sync it and remember this has been really hard to do so far you've got to download this thirdparty app and it's pretty crufty and I think you know already millions of people are subscribing to these podcasts and I think this is just going to send it into orbit and this will be on both Mac and windows absolutely and as to get a lot of them as opposed to songs I know there's a lot of songs but there's I think 10 million blogs at this point this is going to go how do you manage that I mean in terms of the size that it becomes from your perspective is it something well because in order to subscribe to one of those podcasts it has to be offered in your store find no that's not true no these podcasts don't need to be hosted by us not hosted by it but it has to appear in the UI of the store a list so how do people register their podcast with you or get them included in your we're going to have a service where they can submit them very efficient very a very automated way and you expect hits to happen I mean the hits naturally happen the way they do and and we'll be able to highlight you know what are the 20 most uh popular podcast today this that this that and you know there's editorial that goes along with this stuff too so we can you know we can highlight the ones that are really great yeah music so so far we've been talking about a product you make that is got I don't know what is it 60 70 80% share the iPod and different but you make another line of products that's like under five % share has been yeah uh the McIntosh we try harder we try harder uh lots of analysts uh have written about this so-called halo effect from the iPod is that just or is it true is it real or well what we can say is the last few quarters we've grown you know three and four times as fast as the rest of the industry so we are picking up some market share and uh I strongly suspect it is due to that iPod Halo uh how much of a role do you think the stores play in it I think the stores play a huge role you know we have 105 stores 100 of them in this country and we're seeing over a million visitors a week now and that's a lot for us and in addition to that um The Experience they get when they go into the stores is just phenomenal so uh you know we've got uh as an example one of the best inventions of the store is called the Genius Bar and you can go in with problems about you know how does this software work with this you know with my computer or my operating system's not working right or whatever it might be repairs you name it and these people handle it for free and uh we we've you know in some of our stores now like in our New York store we have we're pushing a hundred Geniuses that work there 100 Geniuses genius you found 100 Geniuses in New York City yes it's amazing who actually want to work for us um you say your market share has increased what what is your market share for the MAC at this point it depends who you listen to in in the US uh you know it's I think starting with a four now which is good internationally it's a little bit less because we haven't participated in some of the Emerging Markets as much as we should have when do you expect that you'll get to 10% I don't know when do you think you will get to 10% it's possible um you know I've given up predicting stuff like that we're just trying as hard as we can and the vector's going in the right direction do you need a new product that in that area in terms of the laptops in terms of no I think our products are really good I think they're the best they've ever been and you know so we're trying to make the best personal computers in the world I think we do uh we're trying to make the best operating system in the world I think we do and we've got some awesome applications so uh you know our customers love us we've got 25 plus million customers and I think you'd be hard pressed to find too many other customer bases that are in love with their products as much as ours are in love with with our products and what's so great about the iPod thank you what's so great about the iPod is it's putting an Apple product in the hands of now you know tens of millions of people that don't have one and some of them are going wow this is really great I wonder what else Apple makes and some of them are going yeah I wonder and some of them are are going in to buy an iPod at the store and they're going what what's all this other stuff here and they're learning about our computers and um you know I think if if people learn about our products uh many of them choose them um you have been free of known successful viruses on os10 which came out in 2001 so far and I'm saying that carefully because there have been some viruses created in the labs but as far as I know there have been none that have been reported to be spreading among Macintosh computers in the real world yes um is that going to end this year what do you think is the is the Temptation there's a certain even though you have a small market share and and so you're not nearly as attractive a Target they can't bring giant corporations to their knees by infecting Max because as you said earlier you're not that big in the Fortune 500 um well they could bring one at least yeah one yeah right and a lot of people who love you um actually I I learned that the XBox guys at Microsoft had I think they told me something like 4,000 Max that they bought to MH because they use the same processor used you do right they were a great customer this year and we we appreciate that very much so you we promised them we' go out and buy 4,000 Xboxes too but but now they can flood the market with used paramax it's it's an issue but um uh so so isn't it isn't it kind of becoming something where the first guy that can infect a bunch of Max with a virus looks like a hero because nobody oh I think it's looked that way for a long time because while you may not you know bring a Proctor and Gamble to its knees because they they don't all use max there's a lot of very visible very influential people that do so I think people have been trying for a long time and and and one thing you never want to do in dealing with security and viruses is be Cavaliers so who knows you know could be tomorrow uh when something like that happens but we try really hard and we have a very robust operating system in terms of security and we have some practices that I think are are certainly best of class practices in terms of how users have to relate with that operating system I remember when we were designing OS 10 uh AI tanan the person that was running software at the time uh showed us os10 and every time uh you wanted to uh load an application into OS 10 whether it was off the internet or or even off a disc you had to type in your your name and password you had to authenticate and we gave him incredible for that you know we said Obby are you nuts this is the mac and he said trust me and and you know so we deferred to Obi in the end on that after trying to twist his arm for a year and boy was he ahead of his time just that simple thing and there's like a h hundred things like that in OS 10 where you can't load an app off the internet without authenticating uh before it runs and you know other operating systems are are implementing these same things now but there's a lot of stuff in 10 that was thought through correctly now we don't Market this because that's like you know the red cape and the bull um and and this is a problem we all have so I don't think it should be used as a competitive you know a weapon uh but but do you think it's a competitive Factor do you think you're at least getting consideration from people that might not have given you consideration because they want to find a Haven where they think they'll have less hassle from virus I I think it's a fact number one uh and number two I think we've certainly had people come to us and say we clearly have to have a more heterogeneous environment now you know with a homogeneous environment we are just too vulnerable we have to have a heterogeneous environment but you don't see yourself moving into the corporate space you said this The Fortune 500 was not where you dealt it's not where we proactively uh go out and push but uh when people want to buy our computers we hardly ever say no really good even if they live in an orifice you're really to go that's that's great um how's Tiger Tiger doing tiger came out what 3 four weeks ago tiger is doing phenomenally well tiger if you don't know is the um the latest release of Mac OS 10 it's the fifth major release of Mac OS 10 since we released it uh about five years ago and um it uh it's phenomenal it's the it's the most successful well it's the best OS Apple's ever released it is the most successful OS release we've ever had both in terms of of uh critical Acclaim reviews as well as sales and um uh we couldn't be happy with it do you have any idea how much of your what percent of your user base I know it's early but already has has converted um we do but I I can't say because um we're supposed to keep those things quiet till we announce you know earnings and stuff really so yeah that's not the rule here at D so you can tell us we won't tell this is like an the no the SEC has declared this like a free zone a free information zone right yeah is it a per you have the percentage of how many of the people use it yeah oh we we know this every week as we tally up our results but I can't say all right then all right so how many of you how many of you have ever seen ma 10 tiger any great do you guys there's a lot that haven't though can I I can I show one yeah you can show a few things sure let me just show two things in Tiger here real quick uh I know don't want to bore those of you who are who are using it but um there's just two features that that would be fun to see one is called spotlight um we are we live in the in the in the in the Google era uh thank you and and we can find stuff on the internet really fast but it turned out it was much harder it started to be much harder to find stuff on our computers than it was to find stuff on every server on the internet and that's pretty crazy so a lot of people have been working on desktop search we we demoed this uh about uh gosh 18 months ago and about nine months ago uh we saw Google and Microsoft and come out with the desktop search tools and I think we've seen Yahoo come out with one too and uh and we actually uh from the very beginning wanted to build it into the operating system and the reason you want to build it in the operating system because it just works better it's far more comprehensive than an add-on tool and and maybe most importantly it knows when to update its indexes uh it knows when something changes because the operating system smart and can say hey this file Chang you better go update your data for that so things get updated instantly instead of waiting and therefore missing results so we could go search for something we just put something up in the menu bar here little place to type in I could type in uh baseball and uh boom it finds stuff uh whether it's images or documents or presentations whatever I want I can just go click something and open it right here a PowerPoint presentation uh you know Excel document mail message uh contacts or I could say show everything there's 401 things it found it brings up another window and it shows me images as an example there's uh 325 of them you know I can see them all uh you know boom find images real fast uh or go back to just looking at my top five and I've got documents here you know I could open up uh you know EXL spreadsheet and it's got something about baseball in it somewhere uh you know go up in a PowerPoint presentation again a mail message boom there's a mail message having something to do about baseball and so whatever it is you're looking for you can just find it instantly I could again type in uh yuse and any app even inside a PDFs you know here's a map of California that's a PDF file and inside this map of California uh there is the word yed that it just zoomed in on inside a PDF so it finds things uh just about anywhere in the system uh just about instantly so that's how is this different from the Google add-on desktop search for Windows or the micos MSN which uh a few days ago came out of beta with their uh or it's actually called Windows desktop search uh why is this I mean is it the same thing you don't have to spend 129 bucks on a new OS to get those they're free well it's better in three ways number one it's far more comprehensive it searches many many more things really oh sure absolutely finds applications finds preferences finds everything all over the system many more application types as well number two it index it knows when to index because the operating system tells it something changes these other tools uh are not up to date so you have to tell them the index or the index on a schedule but if you're trying to find something that changed you know five minutes ago you're not going to find it with these tools and number three this is built into the system so applications can actually build this feature into themselves so as an example you know we joke around a lot but Microsoft and Apple have a really good relationship with each other and they have a Mac business unit which does a great version of office for the mac and they are building in Spotlight into the next generation of off spotl is the name of the spotl is the name of the search technology so you can find stuff from their application as well even though this finds stuff from the Microsoft applications today they're building it into do it doesn't find stuff in entourage doesn't find stuff in entourage and they're going to build that in yes they are now is this the way people are going to compute the way they yeah deal with their desktop we've had a when I got back to Apple seven years ago um the finder which is our you know our our our file management system was the face of the OS and you know in every user interface study we've ever done and I'm sure everybody uh it's pretty easy to learn how to use these things till you hit the file system then the learning curve goes you know vertical uh and so you ask yourself why is the file system the face of the OS wouldn't it be better if there was a better way to find stuff now email there's always been a better way to find stuff you don't keep your email in your file system right the the app manages it and that was the Breakthrough as an example in iTunes you don't keep your music in the file system that would be crazy you keep it in this app that knows about music and knows how to find things a lot of different ways same with photos we've got you know an app that knows all about photos and these apps manage their own uh file storage so you don't have to go uh trudging through the file system to find stuff what I what we've wanted to do for a while is take the last vestage of this over with something that was easy to use and that's what Spotlight is going to do and we're already seeing people using their finder less and less and less and eventually the file system management is just going to be an app for pros and consumers aren't going to need to use it but they have to trust that this is going to find everything yes just like they have to trust that the file system is going to file everything and it's going to be there tomorrow when they go to look for it and so people are going to stop making folders you know this project that project it'll just I think the majority of consumers are going to have dramatically less use and some are going to stop using the file system altogether directly and just do this use this as their use this plus their other apps like iTunes iPhone phot Etc now some of the windows products um do many more previews than you do in here uh the mic the Microsoft the Windows desktop search for instance the Yahoo one uh almost anything they'll preview if it's a Word document they show you the word document in a separate panel if it's music you can play it you have photos but you don't have many other previews in here why is that philosophically why didn't you do that uh what you find if you go talk to people is most people find everything other than photos by by their names by their file types and their names which we have both of and we could put those other things in there it's just that it takes up space and most people would rather see more stuff okay we tried it we tried it that way and actually people you could make another panel here where I could quickly look at this word thing maybe I don't have to open word I just want to see what's in the you mean a document yeah you mean actually see a little thumbnail of document more than a thumbnail they really do a preview it's maybe not a full screen but it's you know it's readable well maybe that's something we should go look at okay all right you have another tiger you want I want to show you one other feature uh which is dashboard matter of fact let me just get this back up so we have something there uh so let's say you're you know you're working on something you got a bunch of Windows up a bunch of apps up you want to just check something you want to find out what the weather's like etc etc and we came up with this thing called dashboard which has just got to be the most popular feature of tiger you hit this thing right here and boom these little widgets come out of the screen instantly and you can get them off boom instantly go back to what you were doing so boom we got you know San Diego time we got New York time you can set up as many clocks as you want just by going back here and you know we want to set one up for uh oh Europe and let's say we want to set one up for Paris right here yeah it's getting to that age and uh same with weather we got San Diego weather we have as much weather as we want you can have you know stock widgets here looking at stock pricing I don't know if we're on the internet here or not uh we got flight tracker I could say you know here's a Jet Blue flight going across the country we can program any flight we want just track the flights so different things you can do calculators etc etc and all this stuff just disappears instantly and comes back uh you know here we made a well I'll come back to that a little bit later we got some thirdparty widgets as well um you know that we can have here's one I've got one up here which is a countdown widget that will count down the number of days to a specific event that you just put in uh we've got some we've got an Amazon widget here where you can just look stuff up on Amazon by typing it in and uh it'll go immediately to Amazon which is kind of fun got a CNN widget here and um you know here's the top stories on CNN which again you can go immediately and read them all if you want to uh here's a sports scoreboard one you know that just gives you sports scores and Cycles through those and we made uh we made one here called the Walt widget which uh just points to your columns and you know just click on it and it goes to the goes to your column right here and it's pretty cool and it just all works together with everything else in Tiger can I license that like back from you here's another feature of tiger that's fun you know it's just the text speech Apple computer will introduce a new edition of the operating system for its Macintosh computers that finally solves the missing file problem and introduces other features as well including a new that sounds better than Walt yeah yeah so anyway she's hired yeah that's dashboard thanks yep so you uh you wear another cap I don't know how much time you spend at Pixar you could tell us if you like what's the split between them and it varies um I I try to spend uh one day a week there physically uh but but when we're you know getting ready to release a movie I can be there all week so it it it it's Dynamic the new movie is Cars coming out we have a movie coming out in about a year called cars it's our next one what is going on in that business from your perspective I just finished the Disney book by uh totally blanking Jim Jim Jim Stewart um and it was in it you were talking a lot to Roy Disney and one of the things you said is I'll never do business uh when Michael Eisner is there and he's moved along yeah well you know what's going on in that business is the same as going on in in in in that business for a long time which is people are trying to make really good movies and it's a really different business than the computer business in the computer business you know if somebody buys a Dell they're probably not going to buy a Mac uh if somebody buys a Mac they're probably not going to buy a Dell so there's a winner and a loser um and but in the movie business it's not that way if there's three lousy movies out you're probably not going to go see any of them if there's three good movies out you might go see all of them and so you know we you could ask yourself um we had a year a little while back where Shrek came out in the spring and and I think it was uh Monsters Inc came out in the fall uh and you could you know Shrek was a big hit if if Shrek had failed would that have helped monsters I don't think so if Shrek succeeded did that hurt monsters I don't think so matter of fact it might have helped monsters because it gets people seeing animation so it's not a zero sum game like the computer business as long as you have different release windows it's fine and so we're really competing about whether we can make a movie that a lot of people want to go see hopefully a few times and then buy the DVD and so it's a very different business what's one of the issues we don't have topics at D but this year one has certainly emerged about disaggregation of media I think Hollywood is obviously concerned in the music business it's moving to the video business newspapers are very concerned well we see that with I podcasting the disaggregation of radio right exactly in every area and and so uh the idea is and I don't know if you we actually I I don't I think he hope he's in the room Chris Anderson the editor of wired wrote a piece called The Long tale and I think he's WR a book about it and it's very interesting it goes to this idea of do we still have our mask market and you know we've been focused very much in the kind of physical world on these hits big hits Hollywood's certainly been part of that but there's really in the virtual world money to be made all the way down that long tail of things that don't command as many sales as the hits but cumulatively Hollywood has been focused on that tale as well I mean the DVD Revolution Hollywood's put out the library on DVDs and it's printing money so it's not just the hits uh there is a long Tale in Hollywood of of of of content that's been released on DVDs it was made many years ago but your studio yes uh you've been in the big hits business right I mean that's and that's a good thing obviously um well Happ we've been really we've been we've worked really hard and we've been really lucky and we've had six big hits and what happens if you have uh you know I wish this on you but what happens if you have two flops or two things that are just sort of mediocre at the box office well you know I think Someday I'm sure we'll have a movie that doesn't perform as well as we'd like you know our stock will go down we'll take our cash buy our stock back I don't know but what does it take to get a hit I mean I think what Walt's getting at is that you know if one small say Indian movie hits everyone who wants to see it which the internet can help you do that on well you know the way that you make animated movies is really different than live action movies as you may know um in a liveaction movie the director goes out and shoots lots of film Ty Al between 10 and 100 times more footage than will end up on the screen and then they take it all into the editing room and they build their movie in the editing room and um that's why uh you know sometimes you see a movie you go that's stunk didn't they know it well the answer is yes they did but they knew it too late they knew it in the editing room and they go oh Jesus and by the time they knew it the actors were gone the sets were down they ran out of money and they had what they had and they made the best movie they could um well or not or not yeah so in animation it is so expensive that you cannot afford to animate more than a few percent more than is going to end up on the screen you could never afford to animate 10 times more than it's going to end up on the screen so how do you do it well Walt Disney himself solved this problem decades ago and the way he solved it was he said we have to edit our film before we make it not after well how do you edit a film before you make it well you get your story team together and you do story boards you do these little pictures for every key scene but that wasn't enough then what he did was he actually photographed them on film he filmed each picture of which there are you know thousands and then he got his his his he got scratch voices people around the studio to do the voices and he'd even put in some scratch music and then he could watch his movie and we still do that today we use video we were more sophisticated at it but basically we build our movie before we make it out of these story sketches and we video them and we put scratch music and scratch voices so so we can watch our movie and invariably what you think is going to work crashes and burns when you see it in the reels and you iterate on these reels thousands of times and only when it works in the reels do you then go animate it and actually produce it and and so you know in Hollywood one of the most popular sayings is you know the story is King but it turns out it really isn't because when push comes to shove when a movie is in production and there's a lot of mouss to feed and they're waiting for stuff to make and the story is not working almost everybody says well we just have to make the movie and one of the things that I'm proudest of Pixar of is we have a story crisis on every movie and Productions rolling and there's mouths to feed and something's just not working and we stop we stop and we fix the story because John Lasser uh you know who's one of the founders of Pixar he really instilled a culture of story story story and even though Pixar is the most technologically advanced studio in the world John has a saying that's really stuck which is no amount of Technology will turn a bad story into a good story so um that's I think one of the reasons why we've been so fortunate is that we get to look at our movies before we really make them and perfect them in reals and then go make them well does that endure in Hollywood now I mean what is changing in the way they make movies or not much or is this idea of the story still important everywhere because that's sort of an old idea it's well it's one of those things where it's easy to say and harder to do expensive to do and uh and everybody has to make their choice and it's one of those things you find out what people really care about you know when you're in a tough situation and the meter's running then you find out how important they think the story is let me ask you about the technology which is uh makes possible the kind of Animation you do kind of animation DreamWorks has been doing um what part of the curve are you on in that technology is it still you know gets better but also more expensive or you're to a point where it it comes down in price or I mean um well when we first started this off um one of our frames there's about 120,000 frames in a movie and you know 90-minute movie or so um one of our frames used to take about three hours to render to take all of the mathematical data and actually make a picture and now we have computers that are about 10 times 10,000 times more powerful throwing at the problem and you know how long it takes to render a frame about three hours how could that be um well because the appetite grows just as fast as the technology is there to feed it and so if you look at a frame of The Incredibles it's vastly richer than a frame of Toy Story and our next film cars it takes it even to another level and so it's unbelievable what we can do and the artists want to do it so we're constantly inventing new technology and it's just getting used like that what does that do to the actual look of it I mean more detailed far more realistic if that's what the if that's what the director wants I mean realism is just a random point in our you know in the space of what you can do like The Incredibles uh they didn't want realistic humans they were caricatured humans uh for cars it's it's actually much more realistic some of the sets you'd think were live action but they're all synthetic so so it's still it's so much richer that in order to hold it to three hours you have to have much more computing power and does that cost much more sophisticated software much more I we're rein a lot of it is software it's all software it's all software so as an example you know the video games the the new uh uh Xbox coming out which looks great and and whatever Sony and and and Nintendo will do I mean they're saying gosh you know we like to put Toy Story you know real time we can render Toy Story on a on a game box and and that's great but you know what we can put on the screen now is is literally you know three orders of magnitude uh more more detailed more sophisticated so uh at Pixar do you use macintoshes at all to do we do we use Macs we also uh uh use um uh uh PCS running Linux you know pains me to write the P sign the POs to Dell but I do it uh uhuh and in terms of um this idea of Hollywood and it gets back to the iPod this disintermediation of media where do you see uh Hollywood continuing in that stream of going from the movie to the to the DVD selling the well again DVDs are are where it's at right now in Hollywood and so Hollywood though has has watched what happened in the music industry and they want to avoid it and it's a much more mature distribution uh uh than than music as an example before iTunes if you wanted to listen to music you had to go and buy the CD that was it in Hollywood if you want to watch watch a movie um you can uh uh buy the DVD you can rent the DVD uh both at block like going down a blockbuster you can have the DVD delivered to your house with Netflix uh you can watch it on pay-per-view if you want to wait a little bit you can watch it on uh uh uh uh free TV you can watch it on the airplane there's a lot of ways to watch a movie and so um and and it's cheap you can watch a movie Very inexpensively now so it's not like the music industry where you had to pay 16 bucks for a CD and that was it you can watch a movie you know you rent a movie for you know buck and a half and so I think however it's always going to be on the internet right this is what we told the music companies and it's it's what we tell the studios you will never keep your content off the internet because all you have to do is all there needs to be is one way to hack it by one hacker and it's on the internet the new Star Wars was on the internet of course that will it will never end and so what you have to do is construct business models that are more enticing than free off the internet by some hacker and I think iTunes as an example said hey there may be a way to do that and Hollywood is beginning to explore ways to do that as well now in the in the in the next the current version of iTunes not the one you showed but the one that's out there was an unannounced feature it's not like apple not to announce whatever it thinks is cool but there was all of a sudden in iTunes the ability to play video clips right you didn't announce it what is that in there for why didn't you announce it um well we're we're putting it in there because we are now with um some albums when you buy we we our whole Mantra was we wanted to give the customer the choice of whether to buy the album or individual songs and it took us a while to convince the music labels of that but we did but we still love to sell albums and and we do sell a lot of albums and we'd like to entice people to buy albums and so with the labels by giving them some extra stuff maybe an extra song or two and we were doing these PDF booklets now that we started off with you two uh and we're doing with a lot of artists now on their albums where that we put together a special booklet you can download in PDF that's pretty exciting and the other thing we can do is we can put a music video with that album so there's a few albums on iTunes Now where you buy the album and you get a music video and a PDF booklet and an extra track an extra feature this is it's an extra feature to entice you to buy albums today do you have it between now and D next year do you expect that you'll be selling videos movies any other form of videos anything's possible anything's possible that's possible you don't rule that out you wouldn't expect to be viewing them on an iPod but for viewing them on a computer it's job security for me not to tell you this so you invite me back next year um I can't let you get off the stage we're going to do some audience Q&A without asking about a side controversy that is going on which is you're suing a bunch of journalists uh who have have their own websites or blogs uh for uh uh revealing some of your future product plans and I think it hasn't really gone to trial it's gone through a few stages and you seem to have won each stage but there's a big uproar because don't you think journalists have a First Amendment right to report news about companies or the government or anybody when they find it what what's the deal with this why are you doing it turns out it turns out the law is actually pretty clear on this um and the law says that journalists do have a First Amendment right except if they break the law breaking the law trumps the First Amendment and the law is quite clear on this and the people we're going after uh took Apple Trade Secrets I mean things with you know drawings schematics confidential documents with the Apple confidential stamped on them and they published them on the Internet and we take exception that we not the only ones Intel and several other companies have filed briefs in support of what we're doing and now there are times in history where courts have decided on a one-off basis that publishing things even though these journalists are breaking the law this is in the public good and they have overruled breaking the law and they've said we're going to allow these journalists to publish uh without uh going to jail and that's happened several times you know in our lifetimes but we don't think that is one of them we don't think that satisfying the Curiosity of Mac customers and more importantly our competitors is is so much in the public interest that it it's going to uh result in these journalists being allowed to break you the Wall Street Journal if it had done something like this well see this is a very interesting thing would we have uh I don't know we might have but see the Wall Street Journal has you know serious thought behind what they publish and they publish things and they have a lot of editorial introspection about what they publish the interesting thing today is uh is is you know anybody can be a quote journalist unquote so as an example if I go come to work at your company and uh uh I uh you know three days later publish all your secrets on the internet my like the plans for my podcast exactly plans for your podcast or you know widget actually you know you said there were some things here that you would rather not have people put in their blogs you know let's say that stuff ends up out you know somewhere put all your secrets you have some intellectual property ins out in the internet you might get upset about that right so there needs to be in this area where anyone can be a journalist in this area where anybody can publish anything without much editorial supervision we are in a gray area now to Define some of that stuff and and we're trying to help in our own small way and the courts will adjudicate this well except that you could be making some very bad precedent we wor about that what an Enron what if an Enron it was right for the people from Men Ron to release these documents and secrets and everything else and so here you are making if you win precedent very well it turns out the precedent already there the law is already there and uh but to be very honest I worry about that in today's uh political environment I think this case could go to the Supreme Court okay well thank you very much we're gonna have maybe 10 minutes of audience Q&A there are some mics in the aisles between the tables there's one right here there's one right here we could bring the mics up there's one right here I don't know where the other one is questions for Steve Jobs no one wants to ask the question oh way back there okay go ahead Steve um what do you see is the pros and cons of porting os10 to other platforms uh o other platforms meaning like Xbox Xbox Hardware uh what do I see with the pros and cons again we think that the people that are choosing to buy um os10 I'm I'm actually not you mean like uh PCS or yeah PCS Intel other Hardware I see well we think we make the best Hardware in the world so um generally the Mac OS 10 customer wants really good hardware and we Supply that we've you know it's been suggested to us that that we OS 10 as software but uh we're just really sticking with our program right now of of of selling a complete solution for a customer thank you thank you right here wait over there Hi um I have a question about recycling Dell and HP both have aggressive recycling programs y when will we see that from Apple you know we have a pretty aggressive recycling program now um we take take back a lot of stuff I forget how many tons it was last year uh we also uh take back iPods and all of our stores and have Battery Exchange and stuff like that so there was one Environmental Group uh that approached us and and and wanted us to fund a lot of their initiatives and we had a slightly different way of going about it so they protested at our annual meeting but our environmental record is actually really good and we're really proud of it yes sir hi I've been a an aid Mac User myself for quite a while but for the first time ever I find myself in after um sub notebooks from say Sony Toshiba um the x40 IBM why is there no subnotebook uh from from Apple why is even the smallest most portable one much more bulky than these competitors offers i l like that myself yeah I must ad I understand the subnotebook market are notebooks that don't have Optical drives in them and uh they're generally for executives that take them to do email and stuff on trips and uh they represent about 15% of the notebook market and uh we have had our hands full uh making you know the other Portables that constitute 85% of the market but you know we're doing pretty well now and maybe we should take another look at that please do I know several actually quite a lot of people who might be switching actually to to the Mac if you made some something like that um available so well I like that yeah I thought so over here yeah Jean batist with the La Tribune in Paris um there was another controversy uh side controversy and it's about a book so um Steve what in um icon didn't you like to react that way you know actually I haven't even seen it but that was unfortunate because the the publisher Wy I believe they make some great how-to books for the mac and stuff like that and this book our folks and their folks we had a really bad experience with them on this book and we're the way they treated us wasn't so good good and uh and so we decided not to carry their book in our 100 Apple Stores and um uh you know there's a lot of other places are going to sell their books so thousands of other outlets so I I doubt if they'll be very affected by it but we just decided we didn't want to do business with them because we didn't like the way we were being treated didn't you think it uh might boost the publicity in the oh yeah that wasn't what it was about it probably did it's fine you know people should publish what they want to publish and people should read what they want to read we're not trying to tell anybody what to write or what to read we just won't sell it we just in our hundred little stores we just decided not to do business with Wy anymore now they're little stores before they were big stores yeah Jan Steve um many people many Mac owners are very passionate about their machines but they're also very passionate about you personally you've had a very tough year you've had a tough year personally and healthwise how are you oh thank you for asking uh well I'm vertical it's uh yeah I had a I had a I was diagnosed with a very rare form of pancreatic cancer which fortunately was uh was uh curable with surgery and I was very very lucky uh and I got a a very uh great lesson in the in the recuperative ability of the human body which is Way Beyond anything I thought and I also uh uh got a wonderful experience of a lot of people uh uh sending really great wishes my way and I I will uh always remember that for the rest of my life so uh you know like anything like that it was pretty awful but it had a few blessings in Disguise and I feel great so thank you for asking right here see if their desire is to try and get a halo effect out of the iPod are into the windows Community are we likely to be able to see WMA as a first class citizen for iPod you know we don't get any requests for that here's a request for that why why would you like that I would like that because I have a library that's filled with a bunch of WMA stuff that won't go easily onto without re encoding we will uh actually there's two kinds of WMA there there's um uh unencrypted WMA and encrypted WMA and um uh unencrypted WMA is automatically converted so if your library is unencrypted we automatically convert it now Microsoft uh had the encrypt check box checked for for many years on WMA so some people unbeknownst to them actually were protecting their Library as they were uh ening why why convert it you can not you've got a smart device why not play it um well there's you know people have different opinions about the different encoders we think the the open source or the Open Standards encoder and decoder AAC that we use uh we like that better than using Microsoft proprietary uh technology for that and we think it sounds better so we've chosen to to support that the only Reas that's nothing to do with your history of competition with Microsoft even if it's better actually not you know we actually talked to Microsoft about licensing WMA at one point in time and the and the license terms that came back were so onerous that we we shelled it you're talking about open WMA or their encrypted version that's sold at some of you know at the all the other download stores we were talking to them at the time about both and and the this was you know few years ago and the terms that came back were just not something we felt we could live with so we went with an open standard which was was AAC well even if you're right about the the quality differences and subjective obviously converting from WMA to something else will only get lower quality so you could do definitely do better native yeah you know what interesting we really don't get that request very much but I'll I'll put it in the hopper Steve there's a thousand bloggers at Microsoft and uh bloggers at people at Apple I understand are not allowed to blog and you don't blog I'm saying employees why is that uh well I I don't blog for the same reason that I I read bill describing why he doesn't blog it's a pretty timec consuming thing and once you start you kind of feel like it's one more thing you got to do every week uh so that's why I don't blog uh but in terms of uh of of blogging at at Apple you know again we have a lot of secret stuff going on and and uh it's it's one of those things where we'd really rather not have to to have some of our employees spreading that around and not have to get upset with people who you know made a a bad judgment about what to put in their blog and what not to put in their blog uh and then one other thing would you will you be able to add any RSS feed to the or any podcasts RSS feed to iTunes or is it only through the store oh you'll be able to add anything you want completely open we're just working with the Open Standards out there yeah and will you uh help companies like ours uh sell podcasts you know be an audible so if we wanted to sell a podcast through your service would you uh help us do the Fulfillment um you know we're planning on having all the podcasts be free at first but uh zing me an email with what you've got in mind and we're open to anything say same email I always send it to you yep okay you got all right we have time for one more over here all right so my wife right now is actually watching Desperate Housewives using her too which is she is entirely non-technical a technology brand she loves and I'm embarrassed somewhat to admit it as a a Windows bigot she actually forced me to buy her an iMac this weekend uh two Brands she loves the apple and the to are they going to come together well first let me say that you married a smart woman uh and one and one with one with great taste uh you know we've uh there were rumors floating around that Apple was one of the many companies that was thinking about uh uh asking too if they wanted to be acquired by them and that was not true in our case it was not something that we we really thought about too much um again the the real issue surrounding this stuff is is The Gatekeepers the aggregators uh of the television experience Comcast comes to mind and as well as the others and again they have uh uh they subsidize uh set top boxes and so uh what that's done is it's distorted the marketplace so you could make the best set top box in the world uh and uh put it out into the world at you know $300 $200 much like TBO did and you don't get much traction uh if you can rent a set toop box for free or for $5 a month from your cable company so U much like the phone companies I think we've got an issue that is definitely limited innovation in that space and you see people trying to go around it like to did like Xbox may do in the living room like other things have done in the living room without a lot of traction to be honest and and I think Xbox get a lot of traction as a game machine but in terms of trying to really uh supplant uh or usurp the set toop box which is really where the action is if you want to reinvent television it's difficult well they were only I mean to be fair the new Xbox is the one that really has much of that in it that's yes we don't know yet right but I I think people will find it hard to uh to get around that and uh and unfortunately that's limiting Innovation well can I just expand on that for a minute um uh Microsoft of course has the media center edition of Windows which does DVR and a lot of other things uh they continue to iterate on it and add new features and interesting things doesn't seem like they have to get Comcast permission for that the way that a cell phone handset maker may have to get Verizon Wireless's position or a straight set toop box maker is there is that you know there was a lot of speculation when you brought out the Mac Mini that you could take that and make some kind of a again though if you really look at it you know I mean the media center is a fun product but it it it really you know has sold not high volumes even by our standards and so uh that's you know it's been a not been raging success except compared with what it did a year ago um so that that's one the second thing though is that if you decide you want to um hook your media center up you can't replace your cable box because uh the cable box has got decryption in it and the media center doesn't so you've got to have your cable box and the media center uh and and the number of remotes we all have keeps multiplying like rabbits so this is part of the problem what you'd love to do is rip out that cable box put in in the media center or whatever and really have a much more integrated experience but there is cable card uh coming and constant time to here it keep keeps getting delayed a year and then a year and then a year so it's constant kind of two years and it'll be here and then you have to get people to use it and then you have to get and and even when you get people to use it uh you know the first generation of these things isn't going to handle things like hpo and stuff so it's a real mess and so like with the cell phone case you're not that anxious to get involved in it for that reason well again you know a lot of people have beaten their heads against the wall and uh you know TAA what a great invention it hasn't really gone very far um and and so you know I I admire Microsoft for continuing to try and keep at it and and sooner or later there will be some PL tectonic changes uh in the industry and maybe the the grips that that the providers today have on this will loosen and there'll be an opportunity for more Innovation thank you very much much thank you thank you is that okay yeah great amazing [Applause] than

Channel: z400racer37

Views: 411,813

Keywords: Steve, Jobs, in, 2005, D3, all, things, digital, ipad, imac, mac, Macintosh, Apple, computers, Walt, Mossberg, Bill, Gates, memorial, AllThingsD, All, Things, Digital, Pixar, Inc, Ipod, Iphone, Touch, Sergey, Brin, Larry, Page, Mark, Zuckerberg, Edwin, Catmull, Ellison, Animation, Oracle

Id: IzH54FpWAP0

Length: 73min 4sec (4384 seconds)

Published: Sat Jun 02 2012