Steve Jobs on Video on iTunes: Music, Movies, and TV

Morning. (music) Good morning. We've got some amazing stuff to show you this morning. And, uh, like every great classic story, I've divided it into three acts. So, what do you say we get started? Act one, the iMac. The iMac is an awesome computer. We

introduced the third generation iMac about a year ago, and I'm pleased to report today that we sold over a million of them in its first year, and we're thrilled with this. And it's a fantastic computer. Uh, I think it's the ultimate desktop architecture because when you have these large flat displays, what better place to put the computer than right behind the display? You can put the optical drive, the hard drive, the power supply there, too, and make a beautiful compact package with the whole computer in it and then float it on a beautiful, elegant stand. Well, the day after we shipped this iMac a year ago,

we started working on the next one. And today, we're introducing an all-new iMac. Continuing down the road of this ultimate desktop architecture, we're going to make a great computer even better. Now, this all-new iMac has three great new features to it. Number one, it's even thinner. We were able to make it even thinner as we put more functionality into it, as you'll see. And so, we were able to take this and resculpt it, so it's even thinner around the edges. As a matter of fact, it's so thin that the 20-inch is now thinner than the 17-inch used to be. And when you see it

in person, it's just far more beautiful and far thinner. So, number one, even thinner. Number two has to do with our EyeSight video cam. Now, we have this incredible video camera, EyeSight, that works with AV for video conferencing, and hundreds of thousands of Mac users use this for video conferencing. It's fantastic. Well, what does this have to do with the new iMac? Well, the new iMac has an EyeSight built in. This $150 video cam built in. And you can see it up there on the top bezel right here. And when it's in use, you get an in-use light so you

know when it's on. It's fantastic. And the camera is even higher quality than the EyeSight. And it's got great technical specs and it looks fantastic. And so right out of the box, you get video conferencing with AV. Video conferencing right out of the box. And it's fantastic. And in addition to that, you know, we, um, thought, well, we can take make use of this video camera even as a still camera. And so we have this little application that runs when you first buy a Mac called Mac Buddy. Some of you may have experienced that, I hope. Uh, and it takes you through setting up your Mac. And we thought, we'll take your picture. We'll take your picture and make it your system picture and stuff. And it was so fun that we thought, people are going to

want to do this a lot. Let's write a little app to do this. And so we wrote a little app called Photo Booth, which has got to be the funnest app we've ever written. And so, uh, I'd love to show you both of these things. Now, I've got a new iMac right here. And, uh, I'm going to go ahead and I'll just, uh, I'll call Phil on, uh, you know, on. And I'll make my window a little bit bigger here. Hey, Phil. Hey, Steve. How's it going? It's going great. I'm calling you on the new iMac. And how do I look? Oh, you look awesome. That's sweet. Phil works for me.

Hey, listen. Why don't you get a few of the guys and call me back? Okay. All right. Talk to you in a second. Thanks. So, right out of the box, video conferencing without anything to buy, no cables to hook up outside of your, uh, internet connection. It's fantastic. So, Phil's going to call me back in just a second here and, uh, we'll have a, uh, a four-way chat. So, I'm going to go ahead and accept that. I'm just going to go full screen in here. Hey, who's that in the middle there? Hey, Scott. Scott, I'm trying to learn about this Mac OS 10 Tiger. It seems chalk full of features. Yeah, it's pretty great. Hey, Bron. Hi. So, it's pretty amazing to be able to do

video conferencing without any extra stuff right out of the box. Yeah, tell me that on page 252. Yeah. Hey, thanks guys. We'll talk to you later. All right. Talk to you later. Now, I'd like to show you Photo Booth. And this is just an incredible way to have some fun. So, here's Photo Booth. H. And, uh, I can go ahead and just take my picture here. Is that great? (music) And, you know, we were in a dark room one time and we thought, wouldn't it be great if we had a flash and we thought,

well, we do have a flash. There's a lot of light behind this display if we just flash it to white. So there's a flash built in. The whole display goes white and it works really well. But let me show you some really cool effects. You push this effects button and all of a sudden, in real time, I've got all these pretty cool effects. So I can go to sepia here, uh, or I can go to colored pencil which is kind of a cool one. Uh, or I could go to thermal here and just go ahead and, you know, and, uh, X-ray and there's some, there's some great ones

here. I love this Andy Warhol one, too. (music) But it gets even better. So then we decided to put in the teenage effects and that's number two here. So the teenage effects are really great like, uh, I'm going to pick bulge here (applause) or, uh, you know, there's a dentist pretty good. Squeeze is actually really good. (applause)

And, uh, there's a few of them actually. Uh oh, Light Tunnel is really great when you want to sort of play God here. And, uh, and so I think we're going to just waste an awful lot of productivity here. But, but look at these things. I mean, they're pretty great. And you can, you can email them too. You can just, you know, email them or send them to Photo, uh, or whatever you want to do. It's really easy. You can set them as your buddy picture in iChat or your account picture. And, uh, and they're just, they're just really terrific. So that is, uh, AV video conferencing right out of the box and, uh.

And Photo Booth. I AV and Photo Booth. And we think people are going to have a lot of fun with these and, uh, and really going to love having video conferencing, uh, and Photo Booth built right into the system. So, eyesight built right in to the new iMac. Now it would be hard to top that, wouldn't it? But I think we did because feature number three is one of the most amazing things we've done in a while. It's called Front Row and it's a new way to experience the media on your computer. What does that mean? That means it's an incredible new

way to enjoy your music, your photos, and your video from your sofa. Well, if you're going to enjoy it from your sofa, you're going to need a remote control. So, we've done a remote control, but we've done it Apple style. What is a remote control, Apple style? It's this. Six buttons. It's really thin, really nice. You can hold it in your hand like this. But it's not just about the remote. It's about what it can do. And I'd like to show you Front Row now. So, I've got my remote here and, uh, I'm sitting on my sofa and I want to enjoy

some music from across the room. What do I do? Do I push this little menu button? (music) And that happens? Well, let's see that again. There's my computer and this is Front Row. That's all it takes to get in it. Wherever I am, I'm in Front Row and I can move around, look at my photos, play a DVD, look at my videos. But let's start with music. And what do I have here? I have all of the music from my iTunes music library and all of my playlists. And so I can just go down here. I can shuffle songs. I can go into playlists, look at artists,

podcasts, whatever I want in playlists. I can go down here and, you know, whatever. Pick a playlist and, uh, just play it. And from across the room, I'm seeing album art controlling the volume. (music) Go to the next song. Skip a song. It's that simple. (music) Clap your hands. So, a totally new way to enjoy my music from across the room. See my album art. It's pretty great. So, I can go back

here, pick something else if I want to, or go up and say, "Okay, let's take a look at photos." Now, what can I do with my photos with Front Row? Well, I can see all the photos I have in Photo. I can see my photo library, or I can go down here and pick any one of the albums that I have in Photo like Boardwalk. And if there's a slideshow set up, I can just push the button and it will play. (music) So, that's how simple it is. And again, I can go pick another slide or go pick

another album. You can see it cycling through some of the pictures. It's really great. So that's photos. Now, a lot of people watch DVDs on their iMac. I know in our house, we certainly do. And it'd be really nice to be able to control them from across the room. Well, now you can. I've got a DVD in here. So, I say I want to play the DVD. And, uh, it's reading the DVD now. It'll spin. It's one of my favorite movies. And, uh, and I can resume playing from where I left off. (music)

Obviously zoom forward to other chapters, change the volume, whatever I want to do. It's really great. And, uh, again, when I go back here, I get the DVD menu, and if I want to see our menu, it just fades it out and, uh, fuzzes it in the background, and I can, you know, start from the beginning, eject the disc, whatever I want to do. It's really great. It's a great way to watch DVDs. I can also watch my own videos here. And so I've got, uh, I can watch, uh, uh, movies here. If I've got, uh, let's say an iMovie that I've made, I've got one here which is, uh, you know, GarageBand. (music)

(applause) (music) All right, we get the idea of that. And we can go down and, uh, oh God, there's all sorts of things on here, but that's mostly what I wanted to show you in movies. And, uh, we go video podcasts again. See what's in video podcasts. You know, for those you've seen Tiki Bar, we probably won't go into this, but you can see video podcasts on here, which is really great. And again, all these things just get put in here automatically for you, uh, if you have them on your computer. And, uh, music videos is another one. You know, a lot of times when you buy an album, you get a music video now. So, we go Black Eyed Peas and we've got a music video we got when we bought their album. So, let's take a look at it.

(music) (applause) Pump it. Hump it. Pump it. Pump it. All right, that was fun. And maybe the coolest thing we've done in videos is something that I think is going to get used an awful lot. Uh, you know, Apple has the most popular movie trailer download site in the world. You go to apple.com with your browser and you can download all the popular movie trailers.

The studios love us because we encode in beautiful H.264 encoding and have the best quality on the internet, and therefore we're the most popular. And, uh, we thought, what could we do with Front Row and Movie Trailers? Well, you don't need your browser anymore. You don't have to go to apple.com anymore. All you have to do is go into Front Row and go to Movie Trailers, and we pull all of the high-res posters off of apple.com for all of the popular movies. And you can go through here and pick a movie and see a movie trailer just like this. So, let's go. I want to show you one I liked, which was The Pink Panther. This was fun. And we stream these right from apple.com. (music)

(applause) Somewhere in this arena, in front of 60,000 screaming fans, (applause) the crime of the century has been committed and only one man can solve it. Officer Jacqulu Jean, third class. Set her to hell. He's got a partner. Without warning, I will attack you. In this way, I will keep you vigilant and allowed. Good one. Thank you.

So, this is going to be the coolest way to watch movie trailers in the world. There's one other one that was really good that I want to see. Where was it? Ah, yes. (music) He was hit by a truck, and you were lying out in that gutter dying, and you had time to sing one song.

One song that would let God know what you felt about your time here on earth. One song that would sum you up. That's the kind of song that truly saves people. Hello, I'm Johnny Cash. (music) I got to ask you how you came up with that sound. Standing like a train, sharp like a razor. We'd play faster if we could. So, isn't this cool? This is so cool. I think. And so Front Row: videos, DVDs, photos, and your music. It's pretty amazing. And of

course, one button and you're right back to your computer. Front Row. All right. So, Front Row is on every new iMac. Again, music. Best way to listen to music from across the room. Your photos. Best way to share photos with friends and family. Movies, music videos, movie trailers. We think this is going to be really, really hot. Now, this remote control, I just wanted to point out something because to me, this captures what Apple's all about. You know, if you look at the remote controls from Microsoft's Media Center, this is one from Gateway and one from HP. This is what they look like. This is what it

takes to operate that sort of thing. And this is ours. And if you do, if you just count the buttons, theirs are over 40 and ours are six. So, I—I don't know that there's ever been a slide that captures what Apple's about as much as this one. And, uh, that, my friends, is Front Row built into every new iMac, along with a built-in iSight camera and all of that even thinner. So three great new features and, of course, we got the normal computer features too. We got two models, 17- and 20-inch. They got faster

processors, faster buses, you know, big hard drives in them. Both have SuperDrives in them. They have PCI Express for the graphics. So, the graphics is faster, faster graphics chips, AirPort Extreme, Bluetooth, and we're even putting a Mighty Mouse in each one now. So, what are these things going to cost? Well, the 17-inch today costs $1,299 and $1,499. Let's start with the $1,299 one, right? We're going to take the $1,299 one, and we're going to add faster processors, faster graphics, and all this stuff. A built-in $150 iSight camera, Photo Booth, remote control, Front Row, built-in SuperDrive, Mighty Mouse, and all of that's even thinner. And what are we going to price

it at? The same $1,299. So, we think this is going to be really popular. The 20-inch model, the 20-inch model sells for $1,799 today, and with all of this extra stuff, it's now going to sell for $1,699. So, we think these are going to be really hot products. The new iMacs are available. We are shipping them today out of our factories in the Far East. They will be hitting stores the middle of next week. So, they are shipping today. And we think this is going to be a landmark desktop product for us. We think this is one of the best computers we've ever made. And especially heading into this holiday season, we think a lot of people are

really going to love this new iMac. So that is act one. (applause) Act two, the iPod. We announced yesterday that we have shipped almost 30 million iPods as of September 24th, when our fiscal quarter and year ended last month. Almost 30 million iPods, and our market share: 75% of all MP3 players shipping.

75%. And to try to keep it very healthy, five weeks ago, we introduced the iPod Nano. Five weeks ago today. And you know what? We shipped over a million iPod Nanos in the first 17 days before September 24th. Over a million of them. And we could not meet demand. And the critical response to the iPod Nano has been through the roof. You know, here's CBS News: from an engineering and design standpoint, the Nano is truly a marvel. Here's USA Today: Apple has scored a smash hit with the iPod. Now with the

Nano, there's a new star of the show. The New York Times, no other flash player on the market offers anything close to the Nano's concept or capacity. And one of my favorites, Walt Mossberg in the Wall Street Journal: I have been testing a Nano for the past few days, and I am smitten. So, we couldn't be happier with the critical success that we've gotten from the Nano. But what about the White iPod? What about the white iPod? It's been a huge success for us and therefore it's time to replace it. Today we are announcing the new white

iPod, as we head into the holiday season. And it's a stunner. The new wide iPod. And yes, it does video. Now, (music) it is really, really beautiful and very thin. And I want to take you through a few of the things it does. Number one, first and foremost on our list is music. It is the best music player we've ever made. It's got a gorgeous large screen. It's the best thing in the world for album art. The sonic quality is

fantastic on it. You can play audiobooks on it. You can also play podcasts on it. Everything you do with music and spoken word. It's fantastic. For photos, it's the best iPod we've ever made. This giant high-quality screen lets you see more of your library than ever before. And the photos just look gorgeous on it. It's phenomenal for photos. Let me jump to extras now for a minute. You can see up to four clocks at once. You can set them for your four favorite time zones. The screen is so large. It's fantastic. Calendars never look better.

Games never look better. We've built in our stopwatch with its lap timer, and we've built in the screen lock so you can lock the screen with a combo lock so nobody can see your contacts and calendars if you want. So, a lot of stuff in extras and now video. We have a beautiful 2 and 1/2-inch TFT display, 320 x 240 pixels, so it's very high density, 260,000 colors. The color is fantastic on it. And most importantly, we support real-time decoding of H.264 video. This is the video standard used in QuickTime 7, and it's adopted as an international standard. It is the best video

compression technology on the planet, and the iPod decodes it wonderfully as well as MPEG-4, and we have TV out. So if you want to buy an optional cable, you can hook the output right up to your TV, and the video quality is just amazing for watching iMoving video, podcasts, for watching music videos, for watching anything that you've got that you want to see on your iPod. It's pretty amazing. So, let's recap. Music, audiobooks, photos,

podcasts, both spoken word and video, home movies, music videos, and a whole lot more. It's an amazing iPod. But it's not just one iPod, it's two because we've got a 30-gig and a 60-gig model of this. Now, how do these compare physically to their predecessor, the 20-gig iPod that we're replacing today? Well, let me show you. This will blow your mind. The 20-gig iPod was the thinnest wide iPod we've had. Well, the 30-gig with 50% more storage is 31% thinner than the 20-gig that it's replacing. The 60 gig, the

dual platter, is actually thinner than the 20 gig as well. It's 12% thinner. So, these new iPods are really thin. They're pretty amazing. And by popular demand, we're making a black one. So, white and a black one. The new iPod designed from the ground up. 30 gigabytes, holds 7,500 songs, 25,000 photos, or up to 75 hours of video. And what's it going to sell for? $299.

$299. The 60-gig model, 15,000 songs, 25,000 photos, or up to 150 hours of video, and it's going to sell for just $399. And both of these models in both of these colors, we are shipping next week out of our factories. So, they're going to be here in time for the holidays. They're going to be here next week. And, uh, we are very excited about this. So, the new iPods, they also come with a nice carrying

case. Keep them all perfect. And, uh, they come in boxes that look just like this. And here's the other side of them. So, start looking for them late next week or that weekend in a store near you. So, the new iPod, this is the best music player we've ever made. It is 30% thinner and has 50% more storage than its predecessor. And it's got this gorgeous screen, which is phenomenal for album art. And yet, it sells for the same price. And you get video as a bonus. It's amazing.

So, what does our holiday lineup look like? It's stronger than it's ever been. We've got the iPod Nano, which we are in high volume production of, and the new iPods, which we ship next week. The lineup has never looked this good. We are so excited by this. Best music players ever, best way to view photos on the go, and the new iPod plays video as a bonus. It's incredible. Now, to tell people about these, we made a new ad. And if you'd like to, I'd love to show it to you now. Yeah. All right. Let's go ahead and run the first ad. (music)

Everywhere you go, you shout it. You don't have to be shy about it now. (music) Sugar. So young. So keeping your love under control. Not good. Let's, uh, let's roll that one more time. Everywhere you go, you shout it.

You don't have to be shy about it now. (music) Sugar come. So young. So keeping your love under control. (music) I get goosebumps every time it pulls back. This is what one of them looks like, by the way. Isn't that incredible? Very tiny. All right. Well, we've got a great ad for the new iPod, but you know, we've been known to do these silhouette ads,

too. And, um, we've been working on one for the last two, two and a half years that we always dreamed of doing. And, uh, finally, we've been able to do it. Uh, we're really proud of it. It takes our Silhouette campaign up to a whole new level. And, uh, I would love to premiere it for you here today. So, our new Silhouette app. Let's go ahead and run it. Snap back to reality. Oh, there goes gravity. Oh, there goes gravity choke. He's so mad, but he won't give up. Daddies know he won't have it, but the

Beat goes on. You better lose yourself in the music. The moment you own it, you better never let it go. You only get one shot. Do not miss your chance to blow. This opportunity comes once in a lifetime. You better (music). Now, that one I think we have to run again. Let's go ahead and run that one again. (music) Snap back to reality. Oh, there goes

gravity. Oh, there goes gravity choke. He's so mad, but he won't give up. Daddy's, he know he won't have it. But the beat goes on. You better lose in the music. The moment you own it, you better never let it go. You only get one shot. Do not miss your chance to blow. This opportunity comes once in a lifetime. You better lose yourself. Whoa. So, these, uh, these ads will be premiering in the next, uh, week or two. So, I hope you have a chance to see them on TV. We've also got some outdoor that is inspired by these ads that you'll see start to see on bus

stops and, uh, on billboards. So, you should start to see some of the stuff appearing in the next month or so as we head into the holidays. And, uh, we're pretty thrilled by it. This one was worth the wait. All right. Well, that is the new iPod act two. Act three, iTunes. You know, we have distributed over 200 million copies of iTunes now in the world, and those are only the copies we know about. It's phenomenal. And iTunes

in the US has an 84% market share last month for all legally downloaded music. It's amazing. Now, we introduced iTunes 5 on September 7th. That's just five weeks ago, with some really great new features in it. But a lot's changed in the last five weeks, hasn't it? And so today, just five weeks later, we are introducing iTunes 6. We've been busy. We've been really busy. And iTunes 6 has four great new features in them. I bet

you can guess what one of them is. So, the four great new features are number one, gifting. This is the most requested feature we've ever had. The ability to just give somebody a song. Uh, and, uh, so we have built in the ability in iTunes 6 to give songs, albums, and playlists. And so if you're on an album page, you can now see this button here. It says gift this music. And if you hit that button, the page changes. And every buy song button changes to a gift song button. The buy album button changes to gift album. And you hit that and you can send it off to somebody. They get an email like this and they hit redeem now and they redeem the song. It's that simple. You can give songs, albums, and playlists. So gifting built into iTunes 6. It's

really, really simple to use. All right, next, customer reviews. We announced six weeks ago that we have over 10 million accounts on iTunes. We want to give these 10 million customers a voice. And so with customer reviews, you know, we added iTunes reviews 5 weeks ago. We are now adding customer reviews in iTunes 6. You can look at averages and you can go ahead and read all of the customer reviews if you want. Uh, it's really going to be great and I think, uh, we're going to have so many reviews very quickly. It's, it's going to be fantastic. So, customer reviews, second new feature. Third new feature, we call it just for you. Personalized recommendations. So, on the homepage of iTunes, you scroll down and this area

here, just for you, we're going to be recommending albums and singles based on what you've bought from the store. So, uh, if you want it to be as accurate as possible, buy more. And when you push on anything, it takes you to the special just for you page and you can cycle through and get more and more recommendations. You can say, "Hey, I already own this," which helps improve the recommendations, or "Hey, I don't like this," which also helps. And, uh, we think this is going to be a really great feature. Now, this is a beta. Uh, we're doing a beta of this feature to see what people think of it and, uh, there's a feedback button on it. We'd love to hear your feedback on it. We think it's going to be really hot just for you. The third feature of iTunes 6. And the fourth feature is video.

You know, if we can play video on our computers, if we can now play video on the new iPod, we have to have a way to buy videos. Well, iTunes 6 offers us a way to buy music videos. Music videos from all your favorite artists. We have over 2,000 music videos for sale starting today in iTunes 6. We have a whole music video page. All your favorite artists, YouTube, Madonna, Kanye West, just about everybody. And you can search on these things, too. So, you do a search for Madonna, take a look at just video. She's got a very large video catalog. You can preview them all and get a preview to make sure you want to buy it. And then hit one button and download

them. They're pretty cool. Now, what do they cost for the song and the video? $1.99 for music videos. But we didn't stop there. We're also adding some other really cool videos that you can buy from one of my favorite studios, the award-winning Pixar Animation Studios. We're putting up six of their award-winning short films. And again, you can preview them and with one click, you can buy them for just $1.99 each. And these films are very beloved and I think you'll really like them. Now we are downloading videos 320x240, which is the native resolution of the new iPod. They look terrific on the iPod and they look terrific on the computer.

And they are the size of about six songs, and so they take as long to download as it takes to download six songs. It's pretty fast, and all the videos are governed under our FairPlay digital rights management system. So you can play them on up to five computers. You can play them on an unlimited number of iPods. There's no burning allowed. You own it, though. There's no monthly rental fees, and they never time out. So, you can buy music videos, you can buy Pixar short films, you can play them on your computer, and you can now play them on your iPod. And so, video, the fourth great new feature, just for you. Customer reviews and gifting. And

gifting also includes videos. You can gift videos as well as songs. Four great new features of iTunes 6, and I'd like to show them to you now. So, let's go do a demo. All right, let's put this away and let's go ahead and launch iTunes here. So, gifting is the most requested feature, and uh, I'm going to go over here and uh just pick a gorilla song. And here's Feel Good. But I could just go ahead and say I want to gift this music and say I want to gift this song. And it's going to ask me who I want to send

it to. Fill in their email address and boom. That's is all the work it takes to give a gift. It's that easy. I also, you can see, have customer reviews right here. And I can see all five reviews for this album. Go to the music store and here they are. Very, very easy. So, that is customer reviews. Now, let me go back to the homepage and uh let me show you just for you. Here's the uh just for you section right down here, and I can click on a song here, you know, Woody Guthrie song, let's say. And uh, here's the just for you section. I can say I already own it or I don't like it. I can also see some more songs, and it'll just keep feeding me songs till I find something I like. And that's just for you. It's that

simple to get great recommendations. All right. Now, I want to go back to home here. And I'm going to go to the uh, oops, excuse me. Actually, don't need to do this. I'm going to go to the music video section right here, and uh, let's go ahead and play a music video. This is a great one. And I'm going to preview it. This Fatboy Slim. (music) Don't be shocked by the toll of my force. Check out my new weapon. Weapon of choice. And so I could own that for just a $1.99

with one click. Uh, so let me go back here. And again, you know, Madonna's got a great catalog of music videos here. Uh, and you could preview them all, of course. Let's just go ahead and preview Vogue. Strike the pose. All right. And let me go show you one more here. Uh, the music video we just saw. You can buy this one too from YouTube. You are the first one of your kind.

(music) And you feel like no one before. So this is how we can buy our videos. And it's really, really easy. And you download them. And then what do you do with them? Well, one of the things you can do if you're lucky enough to own one of the new iMacs is you can go to Front Row and take a look at it on there. So, let's just go to Front Row right now. I've already bought that video and it just uh shows up in Videos right here. And so, let me go to Music Videos and let me go down to YouTube. (applause)

Baby, slow down. (music) The end is not as far as the start. Please stay a child somewhere in your heart. Uh-huh. We'll give you everything that you want. Pretty amazing, isn't it? All right, but now let me do something else here. I've got a uh, one of the new iPods hotwired here so that I can actually take the bits on the screen and put them up on this giant projector. And so what

I'd like to do is let's cut over to the iPod and uh, let me show you that same video on the iPod here. And uh, let me show you a few things before that actually in music since we're looking at the iPod for the first time. Uh, you know, go to Playlists and uh, you know, as an example just play something The Day is My Enemy. The Night My Friend. Let me go through here. (music)

So, it's pretty nice. Now, let me go back and show you photos for a second here. Here's my photo library. I'll just go into it. And as you can see, I can see a whole lot of it at once here once I get loaded in. And I can just, you know, scroll through it, but I can pick one. And as you know, if you've ever seen photos on an iPod, you can scroll through your photo library really nicely, really fast. So that's photos and uh, now let me go to Videos. All right, Music Videos. And let me go find uh, that YouTube music video here. And this is right off the iPod bit for bit. (applause)

Baby, slow down. (music) The end is not as far as the start. Please stay a child somewhere in your heart. Uh-huh. Give you everything that you want. Except the thing that you want. Oh, you are the first one of your kind. And you feel

like no one before. You see right under my door. I need cuz I want you so much more. I want the love of what you got. And I want nothing that you're not. Everywhere you go, you shout it. You don't have to be shy about it. (applause) So, this right on an iPod. All right.

So, you can buy video right on iTunes. You can play it on your computer and you can watch it on your iPod. iTunes 6. iTunes 6 is available today as a free download at apple.com. So, we hope you go ahead and get it. We hope you try some of these videos. They look great on your computer and we hope you get a new iPod and check it out on them as well. So, iTunes 6, that is act three. But we do have one more thing today.

One more thing. It's a pretty big thing. You know, we've talked about how you can buy music videos off the store. You can subscribe to video podcasts off the iTunes Music Store. And you can buy Pixar short films. Well, there is one more thing that we're announcing today that you can buy off the iTunes Music Store, and that is TV shows. Now, (music) if we're going to get TV shows, we ought to get the biggest hits, right? Well,

what's the number one hit show on television? Desperate Housewives. What's the number two hit television show? Lost. And what network are they on? They're both on ABC. And who owns ABC? Disney. I know these guys. The guys that have the number one TV shows. I've had the great fortune to be working with them for quite some time and they own ABC and the Disney Channel, and

we have done a landmark deal which we're announcing here today. We are going to be offering five shows on iTunes which you can purchase online and download and play on your computer and play on your iPod. And those shows are Lost, Desperate Housewives, the number one and two shows on television, a new ABC show called Nightstalker, and the two most popular shows on the Disney Channel, That's So Raven, and The Suite Life of Zack and Cody. And all five of these shows you will now be able to buy on iTunes. And so you can go, as an

example, to Lost and season 1 and buy any of the season 1 episodes, but what about current episodes? Yes, you can buy current episodes and you can buy them the day after they are broadcast. (music) So, you can buy the episode of Desperate Housewives that was broadcast this past Sunday. There will be an episode of Lost broadcast tonight. You can buy it tomorrow. It's amazing. And these shows are downloaded ad-free, so you don't need to fast forward through the commercials.

We are downloading them 320 by 240. Again, the same native resolution as the new iPod. And an hour show like Desperate Housewives and Lost is about the size of five albums. And so that's about the download time. And if you have broadband, which you need for this, depending on what speed broadband you have, it's about 10 to 20 minutes to download an episode. It's really amazing. So TV shows, what are they going to cost? They are going to cost $1.99 an episode. (music)

And that is for current season and past season. So it's fantastic. So you can buy episodes of hit network television shows right off of iTunes, hit shows off the Disney Channel, watch them on your computer, and watch them on your iPod. And let me go show this to you now. So, oops. We can go back to the homepage of the Music Store and I'll go to TV shows over here. And there they are. And I can

go in, as an example, to Desperate Housewives. And here is the episode from this past Sunday. I'll preview it in a window up here. Over the years, Bree Van de Kamp had grown increasingly concerned over her mother-in-law's forgetfulness. "Oh, honey, did I forget to take the pins out of that dress?" Her lapses had become more frequent. "Sweetie, didn't I tell you?" So, we have free previews on every episode so you can make sure it's the episode you're looking for. And when you buy it, you can watch it on your computer. So again, I'll watch it on a Mac with Front Row here.

TV shows, Desperate Housewives, are automatically put right into Front Row when you buy them. We'll go into season two and we'll buy Sunday's EP or we'll take a look at Sunday's episode. "Previously on Desperate Housewives, as one affair ends, we don't have to stick around anymore. We can have a real relationship." Another begins. "I had asked her if she'd like to live together and she said yes." And yet another: "This is Rex's mother, Phyllis, claims. This is Joe Flannery. Are you aware that my daughter-in-law has a boyfriend?" Is exposed. And it's not going to break your heart to leave those sad little faces behind. And while some people can't wait to get out of the house, others are being kept there again. So, right on your computer. And now, let's

take a look at it on the iMac. All right, we're going to go into Videos, TV shows, Desperate Housewives, season two. There we go. "Previously on Desperate Housewives. As one affair ends, we don't have to stick around anymore. We can have a real relationship." Another begins. "I had asked her if she'd like to live together, and she said yes." And yet another: "This is Rex's mother, Phyllis Flames. This is Joe Flannery. Are you aware that my daughter-in-law has a boyfriend?" Is exposed. And it's not going to break your heart to leave those sad little faces behind. And while some

people can't wait to get out of the house, others are being kept there. So, right on your iPod. We think this is a real breakthrough. It's never before been done where you could buy hit network prime time shows online the day after they air on TV and watch them on your computer and on your iPod. And we've been able to reach this landmark deal with Disney. I've enjoyed working with Disney for about 20 years now. And I've gotten to know Bob Iger, Disney's new CEO, really well in the last few months. And it's my real pleasure to introduce him to you.

Now to talk about this deal. Bob, thank you. Thank you. Thank you very much. Thank you. Thank you very much, Steve. It is great to be here on stage, part of this announcement. Everybody at the Walt Disney Company is incredibly excited by this new initiative. We've actually enjoyed a great relationship with Steve, as he just mentioned as well, through Pixar, and it's great to be able to announce an extension of the relationship with Apple. Not with Pixar, with Apple, maybe another time. We'll see. (applause)

One of the things that Steve and I are incredibly excited about is the intersection between great content and great technology. And we're really excited about it because of the opportunities that that intersection or that marriage actually creates. Just think about it from a content provider's perspective. The opportunities the technology provides to reach more people or to make your product better. The opportunities that are provided for the technology company, in this case Apple: great content driving the penetration to a marketplace of great new technology. But it also creates unbelievable opportunities for the consumer, in this case, the viewer. People who might not have a chance to watch a television show on a network, whether it's a cable network or a broadcast network, the first time it

airs. People whose lives, for whatever reason, just you don't enable them to watch as many of their favorite television programs or episodes of their shows as they'd like. That's what this will do. It provides great opportunities for the consumer to stay connected to their favorite programs or to get connected to a program that they might not have had access to before. We have three primary strategies or strategic priorities, I should say, at the Walt Disney Company, and I want to talk about two of them. The first is creating great content. The legacy of the Walt Disney Company is creating great high-quality content, particularly family entertainment, and that's our primary focus. That's where we aim to spend the most time, the most money to attract the

most people. Secondly, the application of technology. I just mentioned technology. I believe it is a great friend of creativity. And what we aim to do is to use technology for two purposes. One, to make our content more compelling, to apply it to the creative process. So the content is simply better so that the experience for the consumer is more compelling and they'll want to consume more content. The second application of technology, which is just as important, is to use it to distribute the content to more people in more places more often. And I can't think of a better example of that than what Steve just announced. This is the intersection of great content, some of television's not only most popular programs but best programs: Desperate Housewives and Lost

in particular, with great technology, Apple, iTunes, iPod. So, we're thrilled to have this relationship with Apple to be able to extend the relationship with Steve, and we believe that, as Steve mentioned, it is indeed breakthrough. This is a first giant step in terms of making content available to more people in more places more often. And we think it's actually just the beginning of what will be a long, hopefully very prosperous relationship with Apple. I want to mention one person who's in the room who made this all possible, and that's Anne Sweeney, who was the co-chairman of our media networks. Anne got on board early on and accepted the mission, so to speak, or the challenge to figure out a way that we could make content that's been available on more traditional platforms

to this new platform. And it wouldn't happen without Anne Sweeney. And so before Steve comes out, I just want to say one more time that I think that this is an incredibly exciting venture for us. It is the future, as far as we're concerned. It is a way that a company whose legacy is to make great content can indeed reach more people. And it's a great marriage between content and technology. And I'm thrilled about it. So Steve, thank you very much. (music) We are beyond thrilled about this and as

Bob said, I think this is the start of something really big. So sometimes that first step is the hardest one and we've just taken it. So you can buy amazing content now on iTunes. Hit prime time TV shows the day after they're broadcast. Watch them on your computer and watch them on your iPod. Okay, so just want to review what we've seen today. An amazing new iMac with an EyeSight video camera built in for video conferencing for things like Photo Booth

and Front Row, a way to experience your music, your photos, your videos from across the room. An all-new iPod, the best music player we've ever made that also plays video. Matter of fact, it does just about everything. And iTunes 6, over 2,000 music videos, six award-winning Pixar short films, and most exciting of all, six or five television shows, including the number one and number two show on television.

So, this is amazing. What's it all mean? Well, one of the things it means is we're going to have some really hot products this holiday season. But I think there's something bigger here today. Let's go back one day to yesterday. Yesterday, after a lot of work over many years, you could buy music online with iTunes, listen to it on your computer, and bring it with you and listen to it on the go on your iPod. Years of work to put all of this infrastructure in place.

In one day, we've traveled a great distance because starting today, you can buy video online. You can watch it on your computer, and you can bring it with you on your iPod. Music videos, short films, and the top shows on television. I've got a feeling we're not in Kansas anymore. And it's all happened in one day. Pretty amazing. So, I would like to now: a lot of people at Apple have really worked hard for the last year to 18 months in these products

And uh, they're in the iPod group, they're in the Mac group, they're in the iTunes group, really all over the company. And all the folks that worked on these products, I would just like to give them a round of applause. Thank you. (music) We've got the most talented team in the world and they put their heart and soul into these products and it's a privilege to work with them.

Well, we've got—It doesn't get any better than that. Well, thank you all for coming this morning and um, I hope that you love these products as much as we do. We've got a hands-on area where you can get your hands on them right outside. And uh, thank you very much. We'll see you soon. (music) (music) This is a public service announcement.

This is only a test. (music) Emergency evacuation.