Apple CEO Steve Jobs’ iTunes Music Store Anniversary remarks

Apple CEO Steve Jobs today said that Apple’s iTunes Music Store has the largest online catalog in the world with over 700,000 songs.

Jobs also reported that in excess of 1,000 users have already published their playlists to iTMS using iTunes’ new iMix feature.

Jobs reviewed the revised iTMS personal usage rights, which reduce the number of times for burning a single playlist from 10 to 7 times while expanding the number of authorized computers from three to five machines.

Jobs said that Apple will continue to focus on the 99-cent per song model and that the vast majority of albums available on iTMS today are $9.99. Jobs sees album prices going down, not up, over time.

Jobs also said that HP expects to ship 8 million copies of iTunes this year. Jobs also expects iTMS Europe later in 2004.

“Jobs took aim at the subscription services, saying that neither content owners, labels, or customers want subscription services. He said that users want to ‘own’ not ‘rent’ their songs. Jobs also noted that some subscription services such as Microsoft ‘Janus’ music service, do not work with playback devices,” MacNN reports. “Jobs concluded by saying the iTunes Music Store made small profit last quarter and that ‘music revolution’ is here with Apple now selling at a rate of more than 140 million a year (2.7 million per week), and although it did fall shy of its 100 million goal, the number is well ahead of what anyone would have predicted. Jobs said the complete experience (iPod, iTunes, iTunes Music Store) experience is only available from Apple and that he hopes that the iTMS drives both iPod and Mac sales.”

“‘Our next step is that we want it to make toast,’ quipped Jobs, in response to a journalist’s question about Apple’s future plans for the iPod. He said that ‘It’s the music, stupid,’ is his mantra when it comes to development of the iPod, seemingly dismissive of suggestions that Apple should integrate video and other capabilities into the device,” MacCentral reports.

“‘A year ago, if someone had predicted 70 million songs sold, they would have been laughed out of the building,’ Jobs said,’ MacMinute reports. “[Paraphrasing Jobs], burning CDs may someday look pretty primitive — burning 7 CDs fine for most honest customers. [On WMA to AAC convertor], ‘Gonna help us a lot in the Windows market,’ says Jobs.”

25 Comments

  1. 700,000. Nice. The de facto advertising standard has been 500,000. I can’t wait until it hits one million. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  2. notice how the new itunes has movie trailers. Just getting everyone used to the idea that they can see movies with ITMS, perhaps. Will we see Apple distributing movies in the future? Methinks yes.

  3. Party Shuffle and the print features are very cool – not sure about the iMix but some may like it.

    The music videos are very cool – I love being able to view these. Even more, I’d love to purchase many music videos (old & new) for viewing not on an iPod but either on my computer or via wi-fi/cat-5 to my TV.

    Imagine streaming your collection of music videos to every TV in your house from your Mac?

  4. 10 to 7 means you can burn 7 CDs with a particular play list of songs. Want to burn 7 more? Then change the sequence of just one song and then you can burn 7 more CDs. Make another sequence change and then burn 7 more, etc., etc. I think you get the idea.

  5. I think it’s interesting that some in the press are bringing up a statement SJ made – one that was very unusual for him, that he expected 100 milion songs to be downloaded in the first year. It was definately out of character for him to predict such a number. He really didn’t know what it would be. Nobody really knew. I’m sure he regrets making it. But it gives the press a negative to trumpet – as this article does, right at the front.

  6. When SJ prediced 100 million back in October he clearly said how they were going to do it – by giving away 100 million songs via Pepsi.

    I think since then they have discovered that as far as the ratings groups that measure market share – they don’t count promotional tunes. So, we have actual sales of 70 million (awesome) but no numbers yet on Pepsi.

    The Pepsi promotion runs through the end of April 30th (Friday) at which time the caps cannot be redeamed. It is possible that next week SJ will announce the results of the Pepsi promotion and it could very well exceed 30 million songs.

    I still think based on the criteria he set out in October that they reached their goal of 100 million. I think the rules for measuring sales are still being created in this new market.

  7. the best feature, by far, is the apple lossless audio codec. I have tried it on much music, and it is able to compress a lot of what I have to 30%-50% of the original filesize.
    I have noticed, though, that quicktime can’t play the lossless audio files (:?)

    I’ll be storing 256kbps aac on my ipod, and apple lossless on my comp.

  8. Someone’s posting as me again. I can’t wait for Tony Blair to waste billions of pounds on a UK-wide ID card system that won’t work, so that people can’t do that.

  9. Good point about Hasselhoff though. Sorry to namedrop, but I’m friend’s with one of his exes. You should hear the stories she tells ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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