Steve Jobs annouced that in May the DRM free tracks will be available. He also went on to describe how music downloads were good business.
He spoke about Interoperablity and Audio Quality and then got into the good stuff:
New album versions will be DRM free and sold along side of old version at 256K AAC $1.29 per song, .30 cents more than original version. People will pay to get the DRM free version. This will be world-wide. Upgrade to higher fidelity version at .30 cents per song. Can also buy the DRM free album at the current price. Half of tracks on iTunes currently will be available DRM free by the end of this year.
During the Q & A session Jobs stated:
No information on the Beatles and when it will be available on iTunes. Jobs said "i'd like to know too!"
Jobs believes that most will choose the DRM free version of music.
We need to trust consumers, piracy will happen but we need to give consumers the best possible music experience and also educate them.
Jobs couldn't say whether or not he was in talks with other major music labels to remove DRM. He says that this isn't anything radically new as 99% of all music shipped is without DRM. Jobs would not name who was or wasn't willing to go DRM free, but stressed that he believed that everyone will win because customers will go for DRM free tracks.
When asked about releasing video DRM free, Jobs said that video has always had DRM so it's no the same thing as music.
Consumers are the center of EMI's strategy and they want to be at the forefront of digital music downloads.
When asked about the "link being broken" now that DRM is being removed from music in the iTunes store and whether he was afraid the iPod would lose sales: Jobs said they just want to make the best music store and best music player and hopefully customers will think they are and purchase them.
EMI hopes all digital retailers will embrace the DRM free tracks.
Steve said they heard EMI was going to buy out Apple. This is not true.
Asked what's the point DRM on the lower priced tracks: Jobs stated they want to give customers a choice and that the premium tracks give them that choice. Not everyone will care about interoperability or sound quality and may opt for the lower priced DRM'd tracks.
"Life is a balance between total freedom and simplicity"
EMI only sets the wholesale price, they do not dictate retail price.
How many songs will a 80 gig iPod hold with 256K ACC. Jobs: "It's proportional!"
How do you justify 20% increase in price? Jobs: we're not upping the price, we're offering a new product. A second product that you can choose to buy or not.
Q & A is now over. Thanks for reading!