Steve Jobs on iPod and iTunes: New Products and Movies

Thank you for coming to this special program. Today we have brought some great things to share with you. So what do you say, how do we start today? We are going to start with iPod. I will give you a small glimpse and then we will learn about some new products. In America, there is more than 75% share in the iPod market. 75% share in the market. We shipped more than 60 million iPods by the end of June. And as you know, there are iPod accessories for almost everything.

There are more than 3000 iPod accessories, with the help of which you can use your iPod almost anywhere. And I want to tell you about one of those new places where you can use your iPod. As one of those 3000 accessories. So this is really great. The environment around the iPod is really great. There are a lot of innovations in this. And as you know, we have been working with automotive companies for many years. And I am very happy to tell you that 70% of the 2007 model cars in America provide iPod connectivity as an alternative. 70% of the cars sold in America provide iPod connectivity as an alternative.

Therefore, it has been really beneficial to work with automotive companies. We have recently launched Nike Plus iPod Sports Kit with Nike. And I want to show you a quote from the CEO of Foot Locker, who is a big fan of shoes. He called it an iPod shoe, which I like very much. But he said, iPod shoe is an incident. It would be hasty to say this now. But let me tell you that we have recently sold a lot of these shoes. And I had to check the number again yesterday because I really couldn't believe that we have sold so many. So this is a very good thing. I wanted to analyze it for you and wanted to tell you that we have sold more than 450,000 Nike Plus iPod Sports Kits and it is less than 90 days old. That's why we are very happy and Nike is also very happy that it has started so well in the initial days and it is really going well.

So what is happening in the world of iPod? This was a small glimpse of it. So let's know about the products. As you know, we have three lines, three families of iPod. iPod, iPod Nano and iPod Shuffle. So let's start with iPod today. As you know, iPod is the best music player in the world. But it is one more thing. It plays video, music video, TV show and other types of videos. It is very amazing. And that's why we are going to make it better today. We will start with the screen. We are going to make the screen 60% brighter. When you are watching the video, it is really good. So you can go from this to that. You can go for such scenes and you can notice it to a large extent.

So 60% brighter screen. We will take the battery and when you are watching the video, we are going to increase the battery life from 2 hours to 3.5 hours. This video is an increase of 75% in battery life. And the video battery life on a large model is from 4 hours to 6.5 hours. We are going to include some new headphones. We have been working on them for 18 months. We are studying on thousands of ears so that they can be presented with the right headphones. And we think this is an improvement. Everyone's ears are different, but we think more people will like it. So it comes standard with the new iPod. The new iPod has finally solved something that was most needed for a few years.

You already know that there are a lot of tracks in music that are made to go from one track to another track. You may be listening to Abbey Road or Pink Floyd's Dark Side of the Moon or classical music, where the end of a track should be joined without any obstacle at the beginning of the next track. And unfortunately this does not happen in digital music. In the encoding process, gaps are put in the middle of the track and most players do not know or do not have the ability to play these tracks one after the other. And that's why we are going to join it again for the first time, as it was made for those tracks that had to be transitioned from one track to another without any obstacle and had to be played without any obstacle.

Playback And this is for those songs that were encoded with MP3, AAC, Apple Lossless, Uncompressed, and it is really good to have gapless playback. So we are also adding some new software features. One is instant searching. And that's why you can just input the letters by using the wheel, and it immediately starts looking for things with those letters. These songs will be found, these artists, albums, podcasts, whatever name you take on your iPod, they will be found. So instant searching. And we are also adding a new feature, so that if you scroll faster and faster, the letter you are passing through will be visible, so that you can scroll faster and know where you are in that process.

So two new software features on the new iPod. We are also adding something new today, which is a game. Now we have sent some simple games on the iPod, but it is actually a very visual and very fun game, and they are all designed for the wheel. So we have some fun games, like Vigeworld, Cubis, Mihong, Miniolf, Pacman, Tetris, Texas Hold, Vortex and Zuma. We have done some of these ourselves with some EA and some other partners, and it has been a lot of fun.

And that's why I'm just going to show you a little bit. Heat Heat Heat Heat Heat data Data Data Data Data So this will give you a little idea of how they are.

And oh, it's just for iPod, and they will all work on 5th generation iPods. They are going to be available all over the world from today. You can buy them from the iTunes Store, and they are going to be sold in 4.99 each. So, IPod per game. So let's tell these features in detail. More than 60% bright display, more than 5% longer video battery life, gapless playback, exciting new game, software-enabled search and quick scrolling feature and new headphones. But perhaps the most important new feature that we are adding to the iPod today is that we are going to make it more affordable and convenient for more people because we are going to reduce its price to $249.

So the new iPod comes in two models, a 30GB and a new 80GB model. And these two come in white and black. The 30GB model can come with 7,500 units, and the 80GB model can come with 20,000 units. This is a new record for the iPod. And 40 hours and 100 hours of video storage. And the prices are again 29 and 3.49 for the 80GB unit. So this is the lowest price for the iPod line so far. And we are really excited. These products are starting shipping from today. So you can get them from today. So this is a new, advanced iPod. This video can do a lot more.

So now let's take a look at the iPod Nano. This is the iPod Nano, and as you know, it is the most popular MP3 player in the world. So today we are going to present the second generation Nano, which has been designed from scratch. And it looks like this. It is made of aluminum, and it is thinner than the first generation Nano. It is beautiful. It looks like this. It is at the top with the hold button. It is at the bottom with the 30-pin connector and headphone jack.

And perhaps the clearest new feature of these new Nano is that we are bringing back the colors. Now we have aluminum, we can beautifully anodize the color. Neela, Gulabi, Hara, Silver, and Kala. And this is the new iPod Nano. Now the first generation Nano had a 14-hour battery life. We are increasing it to 24 hours in the second generation Nano. And we have gapless playback. And we have new software features of instant search and quick scrolling. Two excellent new software features for the second generation Nano. And we are also including new headphones. So in the second generation Nano, there is a thin aluminum case.

It is really very beautiful. It comes in 5 beautiful colors. 40% more shiny display, 24-hour battery, gapless playback, search and quick scrolling, and it comes with new headphones. The second generation Nano comes in 3 models. 2 GB model in silver, 4 GB model in silver, with 3 colors, and 8 GB model in black. From 500 songs to 1000 songs, and from 8 GB to 2000 songs. This is again a new record for the iPod Nano. And the prices are 149 for 2 GB model, 199 for 4 GB model, and 2.49 dollars for the 8 GB model. This is twice the storage on the equivalent points of the first generation Nano.

We also have some new packaging for the new Nano, and it is 50% less than the previous packaging. This is a good thing in terms of the environment, because it dramatically reduces the amount. We have to use Jeevash Vindhan to take these things to the ground. So 52% reduction in volume. And all these new iPod Nanos are available today. Now we have some great accessories too. The first is the charger. And we have a charger that is very small. Actually, it is 40% smaller. And it works with the new Nano. It works with all iPods. So if you are walking with the charger, then it is 40% smaller. Undoubtedly, we also have an armband. We have Lanyard headphones.

And as you can see, it is very comfortable. We also have an armband. We have Lanyard headphones. And as you can see, it has new earbuds. And undoubtedly, it works with the new Nano Nike Plus iPod software and shoes. So these are the second generation iPod Nanos, and we want to tell the world about them. So I would like to show you some ads. I start with a TV ad. So can we go ahead and run it now? Applause Did you like this?

This is very good. Thank you all. So here are some prints that go with it. Bus Board, Jungle Posting, Billboard I hope you will start seeing some things soon. Print Ad And just to tell you that it is a fully remastered Nano. Okay. So this is the new iPod Nano. Now we have the iPod Shuffle. iPod Shuffle is really interesting. You know, we took up the challenge of this concept of a small budget shuffle player. And you know what? It worked. Because I am very happy to tell you today that we have sold 10 million iPod Shuffle so far.

10 million. And that is why we are really happy with it. And today we are announcing the second generation of iPod Shuffle. So let me show you now. This is Okay. This is a part of the first generation. Okay. This is a part of the first generation. Actually, I will have to enlarge it so that you can see it here. The first reaction of the customers who used the first generation Shuffle was the ability to wear. Right? It had a lot of accessories to somehow connect it to your body. It had the ability to wear.

Whether for sports or other uses, it should have the ability to wear. So we started with the ability to wear. And the second generation Shuffle comes with the ability to wear. But we started with the ability to wear. Because there is a built-in clip behind it. I have one here. Actually this is it. That's it. You can clip it anywhere. And there is a switch at the bottom of it on which it is written Play Linearly or Shuffle and turn it off or on. It is very good. And again, it gives you an idea how small it is. It is beautiful. It has a dock with which you can dock it.

And on the other end of that cable there is a USB 2 plug which is directly plugged into your Mac or PC so that it can be charged and synced. And it comes in one model. One model has 1 GB storage which has 1000 mAh battery. 240 songs. So this is the world's smallest MP3 player. Definitely in our knowledge the smallest. It has an aluminum case in which there is a built-in clip. This is the most worn MP3 player in our knowledge. 1 GB. It can hold up to 240 songs. 12 hour battery. USB 2. And it comes with dock and earbuds. Its new packaging is like this. We are going to sell it for $ 79. Is it?

And we are taking orders for it from today. And we will send it in October so that we have enough time for this holiday season. So we are really excited about the second generation iPod Shuffle which is the world's most wearable and smallest MP3 player. So this is the story with iPod. Earlier I wanted to talk about it and wanted to tell you what we are going to do here. But as you know, iPod is just a part of the story because iPod and iTunes make this experience so magical for us. So now I want to talk about iTunes. iTunes has a market of 88% share in Vedhanik US Download.

Vedhanik US Download has 88% market share. We have bought and downloaded more than 1.5 billion songs from iTunes. Now if you look at all the CDs and online distributed music in the US, let's see where iTunes is standing. No. 1 is Walmart. They sell a lot of physical CDs. No. 2 is Best Buy. No. 3 is Target. No. 4 is Amazon. These people sell physical CDs. For the first time, a pure online company has reached the top 5.

iTunes is now the 5th largest reseller of Vedhanik music in the US and we are on our way to coming in 4th place in the first quarter of next year leaving Amazon behind. Outside the US, iTunes music stores are in 21 countries. Now you know what is the best thing. It is No. 1 in each of those 21 countries. So this is iTunes, the app that we know and like. And today we are telling you about the biggest change since being introduced in iTunes in 2001.

iTunes 7 And here it is. Now you can say that it doesn't look very different, isn't it? iTunes 7 They both look the same, but it's not like that. Let me show you the difference. Let me start with the playlist. Here you choose who you are going to work with. Here you can arrange your music. So the first thing is that you can see that we have divided it into sections. Library, Store, Device and Playlist. Now there is not just a big library in the library, but your music, your TV show, your podcast, your audiobook, if you have it, then whatever you have, there are different libraries for it, so you can find things very quickly. There is a better way.

iTunes Store has its own section. Device has its own section. iPod CD, which you are ripping, they keep coming. If they are there, they have their own section and playlist, isn't it? Very simple and straight. This is a very good improvement. And this is the first thing that is different. Now I focus on one more new thing, that is the view. We have added some new views to iTunes 7. So this is a switch, a three-position switch, and it controls the view that is being viewed by you. So here is my music library and I am looking at the view. Isn't it? We have now added another view which is called album view and it keeps the album art there and it keeps all the tracks of that album.

So you can scroll in your music library and see it as per the album. Isn't it? This is amazing. Now it is obvious that if you do not have album art, then it is not that attractive. And that's why you know, if you buy songs from the iTunes music store, then we give you great album art. But what will happen if you rip them from your CD? You don't have album art. Anyway, today we are announcing that if you have iTunes account, then iTunes will give missing album cover art for all the music in your library for free. So if you have iTunes account, then iTunes will download it automatically. Now it is possible that we don't have everything, but we have album artwork of 3.5 million songs. So the probability is very good that we have everything you need.

And if you have iTunes account, then iTunes will download it for free. So the album view is really amazing. But there is something better than this and that is the third view. This is called cover flow view. It helps you to find what you are looking for through album cover. And not only that, it gives you the convenience to find your existing music again. This is the most amazing thing. And I will show it to you in just a minute. But this is not only for your library. It also works in the playlist. So in the playlist, you have a list view, you have an album view and every playlist has a cover flow view. And this is not only for music. Let's go to the TV show.

I can see my TV show according to the list. But I can also use the album view. And it shows the artwork for every show. And it shows all the episodes of every season of that TV show right next to that artwork. And I can also find my TV show with the cover flow view. So it works for everything in the system. And it is very amazing. And we feel that view, new view, iTunes 7 is going to be one of the most popular new features. Now we were talking about the TV show. Let me give you an update. We announced the TV show last October. So less than a year ago, customers bought and downloaded more than 45 million TV shows. And let me show you what happened that year.

We started with 5 shows last October, only 5 shows, and we have been adding them since then. Now we have more than 220 TV shows. We started with only one network ABC last October. Now we have more than 40 networks, including every big network. So see how we have been increasing every month. In less than a year, we have reached more than 220 shows from 5 shows to more than 40 networks from 1 network. Today we are joining a new network. I want to tell you about NFL Network. And they are bringing the NFL film highlights of the entire 2006 season on iTunes. And you can buy it every game or you can buy a season pass where you can choose your favorite team.

And as soon as the highlights of that team's game are available, they will automatically be downloaded in your iTunes library. So this is very good. Now this whole video is encoded from the world's best video encoding technique H.264. And till now we were delivering it at a resolution of 320x240, which works very well on iPod and is also good on your computer. Today we are taking it one step further. We are going to increase the resolution to 4 times and all videos will be delivered at 640x4480. Music video, TV show, everything. So instead of getting it again, you will get 4 times more resolution.

Now iTunes 7 also has gapless playback as you guessed. And there are some other very good things about which I want to tell you. First of all, now you can manage your iPod from iTunes. You know, earlier we had to go to preferences to sync with our iPod. Now just click on your iPod and boom it shows you, it gives you a summary of the things on your iPod. We have made installers in iTunes only. And so if you want to move forward and there is any new software that you want to update, then the updater has been made in it. And so you just have to press a button and update your iPod from iTunes.

Other than this, there are some tabs above and you can set what you want to get on your iPod from iTunes. Other than this, there are tabs above and you can set what you want on your iPod. So let's go to the TV show. I want to show you something that we have combined. Under the TV show, I want to highlight it. What do you want on your iPod in the context of this TV show? This is a way to decide for yourself. And it works like this. You can just say, I want to sync 10 of the lightest episodes of all TV shows. Or you can also choose the show. Isn't it? Isn't it? If I like Monk, if I like Lost, then I can say, give me 10 of the lightest episodes of those two TV shows. And whenever I sync my iPod, they will be on it.

Now if I run them on my computer or iPod, then iTunes finds out about it. And next time when I sync with my iPod, it will remove that episode and put another episode. If I buy a new one, which is light, then it will change it from the lightest episode. And it will always keep my iPod updated with the 10 latest episodes of those TV shows, which I want. So we are starting to clean this process. And it is making it even easier to decide what you want on your iPod and what not. We have added another very good feature in iTunes 7. This is the ability to take the material purchased from the iTunes Music Store to your various computers more easily. So suppose you have a computer at home and work. It can be two Macs, it can be two PCs, it can be a mixture of both, it doesn't really matter.

But both of them are running iTunes 7. And both of them are more than your account. Both of them are more than one account. Now you can take your iPod and sync it with your computer at home. Suppose you take it to work. And if it is more than that account, then that content will automatically sync back to your work computer. And in this way you can transfer content. You can transfer the content purchased from the iTunes Music Store using the iPod between the authorized computer. So, album and cover flow view. We think these things are really going to be very good. New source organization, gapless playback, 4 times more video resolution, integrated iPod management in iTunes.

You can transfer the content purchased from the iTunes Store through your iPod. And we also have a new download manager with which you can track what is being downloaded and can change the priorities etc. And that's why now I want to give you a demo of iTunes 7. Here is my music library and you know, we can go and play songs. You can choose whatever you want. So now what I want to do is that you see my source list with my separate movie library and TV show and podcast audio books.

And I have to go back to music and show you the album view. So here it is. This is the album view and I can scroll according to the album in my library. And this is really great. You know that many times I have the whole album. Sometimes I have only one song and it is very easy to find it. Here it is. I show you the cover flow view. Go up here to the third view and boom there is the cover flow. Now I can make its size smaller or bigger. And I can scroll like this in my album. If I want, I can do this one by one. You know, scroll to the end.

This is great. You just click on an album to run it. And that's why this is a great way to find things. But this is also a great way to rediscover your music library. You know, this was good. And you know that they have been sorted according to the album.

If I want, I can sort them according to the artist. And now it changes the sort on the cover flow. And that's why I can just start and see. According to the artists, more has been sorted in Varnanukram, in which Bake is at the front and Dylan, etc. Right. Very good. Okay. Other wonderful new features. Oh, I want to show you the gapless playback. So let's go to gapless. And I have a Beethoven symphony here. I am going to start it from the end of the symphony. And you will see that it moves forward easily on the next track. Let's try a track from Pink Floyd's Dark Side of the Moon.

So it is like this. And do you know what is the best thing? It is not only for the new music purchased by you. iTunes 7 goes to your entire library and finds those songs that had to be gapless played. And with only those songs, it tweets them all back together. So it works with your entire library. You don't need to buy new songs for gapless playback. Oh, I want to show you the arrangement on the iPod again. I can see what I have on the iPod. I have a lot of audio. I have some videos. I have some pictures. You can see below that if any new software comes, I can update my iPod. Oh, which is very good. And again, I go to the TV show and show you again.

You know, I can say that I want to sing. Yes, I want to sing the TV show. I want to sing the three most unseen episodes. I can say, you know, five most, ten most, all. Oh, I can sing my most recent episodes. Whether they have been seen or not. I can choose a TV show and say, okay, I want 24 and or lost and oh and mock. And it will automatically keep the three most unseen episodes on my iPod from those three TV shows. So, very good. And we can manage our iPod in this way. Oh and oh, I show you the game. If you buy a game, oh, the game is shown here in your library. And it gives you the instructions for each game and the way to use them in iTunes. Okay. Now I want to show you some videos.

So I'm going down here to the music video. And again, I can see the music video with the cover flow here. And I'm going to run this video of John Mayer. You must have seen that now we have on-screen control here. So I make it. So this must have given you an idea of the quality of Six Tires X480. I go to the TV show. I also run a TV show. Let's see. I want to run a CSI here. And we will run it. So you must have understood. And again, this is a very big screen. So the video of Six Tires X480 is really great.

So these are some new features of iTunes 7. And we think you are really going to like them. Especially album and cover flow view, gapless playback and dramatic video resolution. So iTunes 7 is available today and it can be downloaded for free on iTunes.com. So I hope you all will get a chance to get it. So in a blink of an eye, we have come from this iTunes 7 to this iTunes 7. But there is one more thing and that is movies. Today we are going to talk about adding movies to the iTunes store.

Full iPod iTunes experience. First of all, I want to go back to the TV show and remind you again that we started with 5 shows and 1 network. And in less than a year, we have 220 shows and 40 networks. The biggest choice in the world of online television programming. So today we are starting with Walt Disney Pictures, Pixa, Touchstone Pictures and Miramax Films, which are 4 studios owned by Walt Disney Company. And from today we are making more than 75 films available online. We will continue to add movies every week and every month, including next year. In a few months, two films, which are the number one and number two films of the year, Pirates of the Caribbean and Cars, will be available on the iTunes store on the day the movie is released on DVD.

So what are we going to keep their price? For the new release, we are going to keep their price $ 12.999 for pre-order and for pre-order, we are going to keep their price $ 12.999. Films are usually available for pre-order about a month before release. And during that time and during the first week on the store, their price is $ 12.99. After the first week, their price becomes $ 14. Then we have the library title. Most of the library title prices will be $ 9.00 every day. And these are the best films like Shakespeare and Love, Good Will Hunting, The English Patient, Oh Brother, Where Art Thou, Enemy of the State, The Insider, National Treasure.

All these films and many more are available in $ $ $ today. The new iTunes store looks like this. Now movies are integrated on the homepage. And you can go to the movie store and it looks like this. And yes, you can see the new release and pre-order with the cover flow inside the store. And when you decide to buy a movie, it is downloaded on 640x480 resolution in almost DVD quality. And if you have modern broadband which is 5 or 6 Mbps, then you can download these movies with 5 Mbps broadband in about 30 minutes. Now it is obvious that if your broadband is slow, it will take more time.

But most of the people are able to get this kind of connectivity, this kind of broadband in their homes. So with 5 Mbps 30 minutes and you can start watching a movie in less than a minute while downloading. So you can watch the movie while downloading. Here is the download manager with the movies. Undoubtedly, you can download more than one movie at a time. You can change the priority. You can stop the download to give all the bandwidth to others. It is very easy to use and most people will not need to go to the download manager. And once your movie is downloaded, you can go to your library and get it from the cover flow. And yes, you can sync it with your iPod. Again, a video up to 100 hours on 80 GB iPod.

So movie, almost image quality like DVD, Dolby Surround Audio. On the day of DVD release, it is available on iTunes the same day it was released on DVD. You can pre-order with a click. The right to use is exactly the same as it is for TV shows, which has been very successful for us. Parental control has been increased to MPA rating. And we expect to take it to the international level in 2007. So now I want to show you what the quality of this movie looks like. So I go here and go to the iTunes store. And here is the new store.

And we can not only see. Not only do we see music, but we can also see movies and TV shows and some popular movies, which we saw here in the new release. But let's go to the movie store. And this is the movie store. And here is the new release. Okay. And I can also see the library title. Featured library title. Boom! Just choose something from here. Now I'm going to go ahead and choose one of the top pirates from the library's top title. And oh! I'll show you a preview. And that's why every movie has a very good high quality trailer. So you must have guessed.

Every movie has a free high quality preview. And suppose we buy pirates. We can go to our movie library here. And if we want, we can use the cover flow again. Okay. Just look and say, oh! There are pirates there. And if we want, we can play it. This gives you an idea of the video quality. We think this is pretty good. I'm going back to the movie store. And I want to see the pre-order of this car. You can pre-order the car from today and you know that the price for pre-order is 12.99 and let's see the trailer again.

You can pre-order the car from today and you know that the price for pre-order is 12.99 and let's see the trailer again. John Lackadar is the director of the car. I can see what other films of John are available, etc. So, This gives you an idea of what we can do with films on iTunes, what quality films we can deliver. So again, Dolby Surround Audio films close to DVD image quality are available the day they are released on DVD.

You can pre-order them a week before with one click. The rights to use are available. This is exactly what we presented for the TV show. This has been very successful for us. Parental control has been expanded and we are really excited about it. So today we are launching Walt Disney Pictures, Pixar Animation Studio, Touchstone Pictures and Miramax Films, which are four studios owned by Walt Disney Company. And I am happy that I am introducing you to the CEO of Walt Disney Company, Bob Iger, so that he can say a few words to us. Hi Bob. Thank you. Thank you. Thank you very much. Thank you very much.

It's hard to believe that it's been a year since I was in San Francisco and announced that ABC and Disney iTunes iPod platform is going to have only five shows. This step was called a breakthrough by many people related to business, which is a very powerful word. Actually, I think they were right. It was a breakthrough. But we knew deep inside that the combination of an excellent content show like Lost and Desperate Housewives with an excellent technique and equally important user interface is really an excellent application. And that's why we are here today to take the next step. We believe that it will be natural for the media to move from the traditional platform to a new platform. You know that films are an important part of our culture. They are definitely an important part of our company.

People like to watch films on a big screen. When the trailer ends, the credits start, and there are pirates or pirates in it, you feel that. It's a great feeling. We also know that people like to watch films at home. Mostly on DVD, whether you are watching it alone, with your wife, or on a date, or with your family. Now we are making films available on this new platform, on this new service, which will give people more opportunities to buy films. You will get more opportunities to watch those films. And Steve mentioned Walt Disney Pictures. We have four labels in Disney. He named all of them. Disney, Miramax, Touchstone, and last year we joined Pixar. And we are going to make films available from all four labels.

About 75, as Steve said. And I know that we told the title, we will repeat it again. Pirates of the Caribbean, Curse of the Black Pearl will be uploaded soon. Sixth Sense, which is a Touchstone film. Pixar films, Incredibles, Cars will be uploaded soon. Miramax titles like Shakespeare and Love and English Patient, Cinderella, and Bambi are great Disney classics. And with time, although most of them are library films, we will keep making films available on this platform day by day. That is, people will be able to go out and buy DVDs day by day. Now, this year has been very good for Disney in film industry. We have the No. 1 and No. 2 films of the year in the box office in the United States. And Pirates, Curse of the Black Pearl, Dead Man's Chest, and Cars.

And in fact, this week, Pirates has crossed the $1 billion mark on the global box office. $1 billion. So this is the third most profitable film in the history of business. I would like to give a brief introduction to the first film. That is Dick Cook, who is the chairman of Walt Disney Studios. Dick, wherever you can stand. Greetings to Dick Cook. Thank you. One more thing I want to mention is Apple. As you would expect, Disney chooses its partners very wisely. We look for such partners who believe in quality like us, who are really experts in the field of creativity, and who put the real consumer first. They make products for the consumer that are reliable, so that the consumer can reach easily.

It is very important. This is what Apple does. That is why when we show a TV show, people say that it is a big success. We knew that we were doing business with a great partner. And after a year, we know that the consumer has really kept his word. Because the success of the television show has been very high on this platform. And last year, it was the most downloaded television program on iTunes and iPod. That is why we believe that movies will also run. They are waiting to bring it. Platform. I am very grateful for the opportunity to work with Apple. And Steve, do you want to come back? We congratulate you on the series of excellent products shown to you today and for this next step. Thank you. And thank you very much to all of you. Thank you. Thank you, Bob.

So now you can buy movies on the iTunes store. And they are now running on the computer around you. And now they are running on the iPod around you. So these were the movies. And I hope that you will all go out and buy something because it is really great. Okay, so let's tell in summary what we saw today. A new advanced iPod, it does a lot of work and now you can watch movies while walking. Movies in your pocket. Movies in your pocket. A new design for the eyes of the second generation. Thin aluminum color. 24-hour battery.

A wonderful new generation. It is going to be a big hit in this holiday season. And the second generation iPod Shuffle, the world's smallest mp3 player, the world's most wearable mp3 player and iTunes 7 runs them all with a new album view and cover flow view. And above all these, there are some movies. So I hope that you have got an idea of what we have and where we are going in this holiday season. Oh, I would like to invite all the people present here who have been a part of Apple's engineering, marketing, management and distribution for all these products.

Can you please stand up? I would like to welcome everyone with a round of applause. They have done a great job. People are really working hard. So thank you. But there is one last thing I would like to talk to you about today. This next thing is a little unusual for us. This is a glimpse of a product that will be announced in the first calendar of 2007. We usually keep things quite secret until we are ready to ship them.

But in this case, I think it completes the story. And to understand where we are going, I want you to take a look at it. So we decided to move forward and show it to you today. So we now have music, TV shows, audio books, movies and all kinds of great digital content available on the iTunes Store. And you can take that content again, whether it is music, TV shows or movies. Come and focus on the movies here. And you can buy it and download it on your computer via the internet. It can be a Mac or PC. I am going to choose Mac here because I am partial. But it can also be a PC. And you can take that content to your computer and enjoy it. Whether it is a desktop or a notebook. And you can also sync it with your iPod.

And this is really great. What about that big screen flat TV that you bought last week? You will like to say that. Watch your movies on it. Okay? So what are we going to do to complete this picture? So you will need a box to run that big screen TV so that the movies can run. I mean, if you want to run a DVD, you have to go out and buy a DVD player, right? So you have to go out and somehow get a small iTunes player so that these things can run. But how will this box talk to the computer? Do I have to lay cables all over my house? Because my computer may be in my den or some other room in the house and my TV may be in the living room or somewhere else. So I am going to talk to it using wireless networking.

And it will send content from my computer to this box and then from box to TV. Are you getting it? Isn't it? We all want to do this. We don't want to break our walls to lay cables. So let's talk about this box. This is a missing piece. So here it is. It looks like this. And we internally call it ITV. It will let you enjoy the media on your big screen flat TV. Isn't it? This is for it. Now this is an internal code name ITV. Before presenting it in the first calendar of next year, we have to come with a final name. We are going to call it ITV today. Now let's see what ITV gives us. Let's rotate it. Look at the connector given at the back.

First of all, what is not in it is a power brick. It already has power supply. Because you don't want a lot of power bricks around your big screen flat TV. It already has power supply. It already has 802.11 wireless networking. For home networking, it talks to industry standard, PC and Mac and everything else. It has a USB 2 port. If you have a terrestrial network, then we have an Ethernet jack. You can also use it. Now let's talk about bringing the video on TV. We have an HDMI connector. This is a new connector that is in all big screen flat TVs. With this, you can send digital video and digital audio from a cable to the TV. So it is already made in it. If you don't have this, then it has component video and analog audio. And if you want, then it also has digital audio through optical cable.

So it has very good and very simple ways to connect to the TV. So ITV is controlled by our very simple remote. It is easy to use. And you can connect it directly to your big flat screen TV or maybe you can connect it to your set-top box. Just like your DVD player is connected to your set-top box. For your DVD player, instead of number 3, choose number 4 for ITV. Or if you have a big receiver, then you can add sound to it. Whatever setup you have, ITV connects without any problem. So let me show you what this thing does. This happened to me. Here is one. And this is, this is.

These are all. Very simple, small box. And the most important thing, I have a working box here. And let's bring it on the screen. And these are probably the most beautiful graphics seen on the TV set. And I have a very big flat screen TV here. So we have movies, TV shows, music, podcasts, photos and some settings. Okay. So what do you say we start with movies? We go to movies and first of all, iTunes will probably provide some information here. It will show you what is new on iTunes and artwork will keep floating here.

But we want to choose a movie. And I show you some great things here. Let me go to The Incredibles. And again if I stop here for a minute, then it gives me a small summary of the movie. It tells me about the artists, directors, creators, length and I want to run it. I press it. Very good. Isn't it? Very good. Isn't it? And again, these are the same movies that I downloaded and which are on my computer and sync with my iPod. My iPod, my computer and my big flat screen TV run the same files. Okay, I'll show you another movie. Oh, I just want to run a little Pirates.

Again, I let it run for a while so that you can see its fundamentals. Again, we are very, very happy with how it is made. This should give you an idea of what you can see on your big flat screen TV. Now I'll show you one more great thing that we can do. Oh, again, because we have wireless networking, we can use your home network to go to the Internet and Apple.com where we have the most popular movie trailer download or movie trailer site in the world. And we can directly watch the movie trailer sitting on your sofa on your big flat screen TV. So let's go ahead and go to the movie trailer in the theater and choose one. What kind of movie is this? I am also interested in it. All the Kings main. So let's take a look at the trailer.

It's very good. Isn't it? So you can watch your favorite movie trailer sitting on your sofa on your home network through ITV. Okay. Now I want to go back and go to the TV show. I want to show you how to watch a TV show. Let's go down to the office. And here's an interesting episode, actually. So you must have got an idea. And we can do the same with the TV show. And again, I'm doing all this from here with this little remote. So let's go to the music. And again, we all know what this can be like. Again, we can see our beautiful album art. Just walking. And I would like to go down here.

Assume that the artist. And I like Bob Dylan. So I'm going to choose Bob Dylan. Here are all my Dylan albums. And oh, you know Highway 61. Assume you know. And again, I'm going to choose Highway 61. So again, you know. Many of us have connected stereo to our TV. Right? Now the best stereo in our home is in our home entertainment system. And oh! That's why it's good to be able to listen to it.