Jobs Says Apple Customers Not into Renting Music

Apr 27, 2007

Apple Chief Executive Steve Jobs indicates he is unlikely to give in to calls from the music industry to add a subscription-based model to Apple's wildly popular iTunes online music store.

"Never say never, but customers don't seem to be interested in it," Jobs told Reuters in an interview after Apple reported blow-out quarterly results. "The subscription model has failed so far."

His comments come as the company he co-founded gears up for contract renewal negotiations with the major record labels over the next month.

Since Apple launched iTunes in 2003, it has sold more than 2.5 billion songs and now offers increasing numbers of television shows and movies.

Many in the music industry hope iTunes will ultimately start, in effect, renting music online, so record companies can make more money from recurring income. But Jobs said he had seen little consumer demand for that.

"People want to own their music," he said.

Industry executives and analysts told Reuters last week that they expect Apple to push for further concessions from record companies on selling music without copy-protection software known as digital rights management (DRM).

In February, Jobs urged all four major record labels to drop DRM, a move that some observers at the time said was sparked by the pressure Apple faces from European regulators to open the iPod/iTunes family to other technology platforms.

Already Apple , owner of the market-leading iPod digital media player as well as iTunes, has cut an early deal with EMI Group Plc, the third largest-record company, to sell music without copy protection software.

"There are a lot of people in the other music companies who are very intrigued by it," Jobs said of the move to sell songs without copy-protection software. "They're thinking very hard about it right now."

The Apple/EMI deal leaves Vivendi's Universal Music Group, Sony BMG Music Entertainment - a joint venture of Sony Corp. and Bertelsmann - and Warner Music Group Corp. in a tough spot, analysts say.

"We've said by the end of this year, over half of the songs we offer on iTunes we believe will be in DRM-free versions," Jobs said. "I think we're going to achieve that."

Copyright 2007 by Ziff Davis Media, Distributed by United Press International

Explore further: UN moves to strengthen digital privacy (Update)

add to favorites email to friend print save as pdf

Related Stories

LiquidPiston unveils quiet X Mini engine prototype

2 hours ago

LiquidPiston has a new X Mini engine which is a small 70 cubic centimeter gasoline powered "prototype. This is a quiet, four-stroke engine with near-zero vibration. The company said it can bring improvements ...

Rare new species of plant: Stachys caroliniana

2 hours ago

The exclusive club of explorers who have discovered a rare new species of life isn't restricted to globetrotters traveling to remote locations like the Amazon rainforests, Madagascar or the woodlands of the ...

New terahertz device could strengthen security

2 hours ago

We are all familiar with the hassles that accompany air travel. We shuffle through long lines, remove our shoes, and carry liquids in regulation-sized tubes. And even after all the effort, we still wonder if these procedures ...

European space plane set for February launch

3 hours ago

Europe's first-ever "space plane" will be launched on February 11 next year, rocket firm Arianespace said Friday after a three-month delay to fine-tune the mission flight plan.

Recommended for you

UN moves to strengthen digital privacy (Update)

Nov 25, 2014

The United Nations on Tuesday adopted a resolution on protecting digital privacy that for the first time urged governments to offer redress to citizens targeted by mass surveillance.

Spotify turns up volume as losses fall

Nov 25, 2014

The world's biggest music streaming service, Spotify, announced Tuesday its revenue grew by 74 percent in 2013 while net losses shrank by one third, in a year of spectacular expansion.

Virtual money and user's identity

Nov 25, 2014

Bitcoin is the new money: minted and exchanged on the Internet. Faster and cheaper than a bank, the service is attracting attention from all over the world. But a big question remains: are the transactions ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.