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: Celebrities' nude shots removed from some websites

add to favorites email to friend print save as pdf

Related Stories

Silicon Valley's interns enjoy perk-filled summer

Jun 08, 2014

Sitting in a kitchen stocked with free food, a handful of 20-something Google summer interns weigh their favorite perks, but where to begin? With bikes, buses, massages, swimming pools, dance classes, nap ...

Five things to know about Apple's duet with Beats

May 29, 2014

Apple CEO Tim Cook looked like he wanted to dance Wednesday as he discussed his company's $3 billion acquisition of Beats Electronics. The deal, by far the most expensive in Apple's 38-year history, will ...

Recommended for you

Startups offer banking for smartphone users

Aug 30, 2014

The latest banks are small enough to fit in the palm of your hand. Startups, such as Moven and Simple, offer banking that's designed specifically for smartphones, enabling users to track their spending on the go. Some things ...

'SwaziLeaks' looks to shake up jet-setting monarchy

Aug 29, 2014

As WikiLeaks founder Julian Assange prepares to end a two-year forced stay at Ecuador's London embassy, he may take comfort in knowing he inspired resistance to secrecy in places as far away as Swaziland.

Ecuador heralds digital currency plans (Update)

Aug 29, 2014

Ecuador is planning to create what it calls the world's first digital currency issued by a central bank, which some analysts believe could be a first step toward abandoning the country's existing currency, ...

User comments : 0