This is the transcript from today’s Apple meeting…

2:24 Event ends.
• Jobs thanks Sara and also everybody else: “Thank you. We love doing what we do.” Thanks Apple employees and other people. Reminds attendees of poster and $20 gift certificate.
• Sara Mclachlan on stage to give live performance (two songs).


• Jobs acknowledges hard work by Apple employees asking them to stand. (applause).
• Mick Jagger from Rolling Stones. “Took so long” for new digital medium.
• Dr. Dre (via iChat). Offers congrats on iTunes and iPod (“No more carrying around duffle bags of CDs.”).
• Artists. “Things start and end with artists.” Lots of exclusive content. REM, Black Eye Peas, Eagles Album (“The very best.”), Grateful Dead, Cold Play (new exclusive), Rolling Stones EP, Sara Mclachlan EP. Jobs says he will talk with artists on the road using iChat video conferencing. First Apple “will go Dublin” to speak with Bonno from U2: “Pope of software meeting up with the Dalilama of integration.” U2 has 15 albums on music store, including “Stuck in the moment”–No. 8 best selling song of all time on iTMS. Bonno praises iTMS and Apple and is “here to kiss the corporate ass. I don’t kiss many corporate asses.”
• Jobs emphasizes goal of 100 million songs by end of April 2004.
• Apple shows video of Dawn Hudson, President of Pepsi-Cola North America (who couldn’t make today). Created “Big promotion. The biggest ever.” Users must buy Pepsi, Diet Pepsi, or Sierra Mist.
• Apple will give away 100 million songs. Apple will produce 300 million bottles with yellow caps. 1 in 3 is a winner. 100 million winning bottles. Winners get a one free song at iTMS. Every bottle has directions for downloading song and what do with number. Will begin on Superbowl ( Feb 1, 2004). Pepsi will run large advertising campaign. It will run for 60 days (Feb/March).
• Apple announces exclusive partnership with AOL. Later this month, a new iTunes button next to every song on AOLmusic. Also iTMS will integrate directly with AOL database. Users can enter AOL name and password for instant account. No need for credit card. Jobs introduces AOL CEO John Miller who takes the stage. Over 16 million users come to AOL music (for discovering and listening to music on the internet). AOL has 25 million users. Instant database.
• Apple offers “Hell froze over” poster (referring to introduction of iTunes for Windows) and $20 gift certificate for iTMS. iPod is No. 1 music player and iTMS has 70% of all downloads. Apple sold 1 million songs in first week. Apple sold 10 million songs in 4 months. Apple now wants to sell 100 million songs in first year (by April 28, 2004). “Very high bar.” Mac customers are expected to purchase 30 million songs. Next thing Apple will be doing is taking to Windows. Apple will make it easy for 25 million users.
• Available on both platform for free starting today at iTunes.com.
• Apple has exclusive Grateful Dead albums. Currently 8 albums available. Jobs plays portion of one song.
• iTunes Music Store notes: Classic music sorted by time period. Jobs still demoing various iTMS features, navigation, audio books (Robin Williams interview with Billy Crystal, George Lucas). A lot of new content. Jobs shows Celebrity playlists (and biography) of celebrities: Dave Brubeck, Sting. Jobs sends $60 gift certificate to Phill Schiller. Demonstrates receipt of iTunes Gift Certificate (same as Windows..brings up iTunes and adds credit limit with notifcation pointing to credit area.) Jobs demo’s Sara McLachlin recording from last week.
• iTMS is built directly into iTunes for Windows. Same store, same functionality. “Best” personal Content rights are the same (own music, unlimited CD burning, burn unchanged playlists up to 10 times, etc. Jobs offers iTunes demo on PC, including Rendezvous sharing with a Mac and sharing streaming.
• One more feature: second generation iTunes runs on Windows. Exactly the same interface and functionality. “iTunes for Windows is the best windows app ever written.” Runs on Windows XP and Windows 2000. Offers jukebox functions–even if you don’t use the store. Jobs compares with Microsoft and MusicMatch offerings. Both have crippled and/or limited features, looking to drive paid upgrades. iTunes best the competition by more MP3 encoding options, CD burning, iPod integration, music sharing among several computers.
• Store offers “Celebrity Playlists.”–songs recommended by music artists.
• Store offers “allowance” for Parents. Parents can create kids accounts directly and send “monthly allowance” without giving kids the credit card number.
• The new iTMS will offer gift certificates on iTMS from $10 to $200. Integrated directly into iTunes. Email notification of gift certificate. Credit limit/Gift Certificate total shown next to account name after user clicks on “Redeem” link.
• Audio books feature perfect round-tripping with your Mac–remembering where you left of on the iPod or the Mac. Automatically updates.
• Second generation iTunes will feature audio books in conjunction with Audible. Over 5000 books available in multi-year exclusive deal. Free previews of each content. Pricing ranges from $11-$16 based on examples by Steve Jobs. Users can also browse for books based on category–built into iTunes.
• Apple has signed up 200 independent labels by end of month. 400,000 songs on iTMS.
• Apple iTMS marketshare is 70% of all music downloads.
• Apple has sold over 13 million songs in less than 6 months, including record recent weeks that offer an annualized run rate of 30M–over 600,000 mong. By end of month there will be 400,000 songs available through iTMS.
• Apple will be competing with illegal downloading using better recording quality, faster downloads, cover art, and other features, including searching, one-click purchasing, etc.
• Apple shows new iPod commercials that have been airing. Produced by Chiat-Day. Jobs also shows new iPod commercial that begins airing tonight (“Rock n’ Roll.”)
• New features require iPod Software 2.1 for dockable iPOds. Available today at apple.com.
• Photo Storage: Belkin accessory: flash card reader for iPod, supports all flash memory. Up to 20,000 photos that automatically sync with iPhoto.
• New features for dockable iPods. All dockable iPods will do voice recording using Belkin’s $49 device. Automatic sync’ing with new version of iTunes. Up to 4 weeks of voice recording.
• iPod unit marketshare is 31%. Revenue marketshare is 56%. No 1 in both unit and revenues.
• Jobs begin talking about the iPod and the new “3G” (third-generation) iPods. Up 10,000 songs in your pocket. Sold millionth iPod in June. Last quarter sold 336,000 iPods or one 2.5 minutes. 1.4 million iPods sold to date.
• 1:07: Steve Jobs takes the stage.
• 1:03: Reporting from Apple Store Palo Alto. Roughly 20 people present.
• Event begins at 1 PM ET.

 

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