[ Music ]
>> So what's new with iTunes in 2009. I'd like to tell
you about three things today that are happening. First,
price. As you know we've worked with all the major
music companies, as well as thousands of independents.
And over the last six years we've had one pricing model
for all songs -- 99 cents. And the music companies have
told us they want more flexibility. Starting in April
we're going to give them more flexibility because we're
going to create three pricing tiers. There will still
be 99 cents. There will also be a pricing tier at 69
cents. And at 1.29. And based on how they choose to
offer us their music we'll sell them at 0.69, 0.99, and
1.29. And I can tell you we know already that more
songs are going to be sold or offered at 0.69 than 1.29.
So it's going to be a benefit to a lot of customers. So
that's the first thing that we're doing with price and
that comes in April. The second thing we're doing.
ITunes plus. If you follow what we're doing with iTunes
Plus, you already know what iTunes Plus is, but for
those who don't, iTunes Plus is a way that we offer
music that is completely DRM free. You can put it on as
many computers that you own. It's also encoded at a
much higher quality bit rate. 256 KB encoding of AAC.
So it's nearly indistinguishable from the original
recording. And for customers that have already
purchased music iTunes Plus offers a really easy way to
upgrade your whole library to iTunes Plus. But what's
new today is we've worked with all major music
companies, and starting today we're going to offer 8
million of the songs all DRM free. 8 million.
[ Applause ]
>> And by the end of this quarter we'll finish out with
2 million more, and all 10 million songs on iTunes will
now be DRM free.
[ Applause ]
>> Just in case someone didn't understand , I had to
make one more slide on it. All songs will be DRM free
in iTunes via iTunes Plus. Now as I said, it's really
easy to go in and upgrade your entire library to iTunes
Plus and upgrade your music to DRM free. So that's
iTunes Plus. That's the second thing. The third new
thing happening with iTunes has to do with the iPhone.
Because you know on of the iPhone we have the iTunes
Wi-Fi music store, and it's the most popular wireless
music store for buying music on devices like cell
phones, and you can go in and you can see what's hot,
you can check the top albums and songs, you can find an
album you want to buy, buy the album, buy the song. And
now with the iTunes music store it's no longer the
iTunes Wi-Fi music store, it's just the iTunes music
store, because it supports downloading and buying your
music on both Wi-Fi and 3G cellular networks.
[ Applause ]
>> So that means you get access to all these songs for
the same price -- a lot of others don't do that -- at
the same price that we talked about. It's the same
selection. All of that incredible -- over 10 million
songs [Inaudible] right on your iPhone. It's the same
quality. Up to 256 KB encoding of AAC you get right
over the air on your iPhone. This means on your iPhone
you can preview and purchase music. Now any time, any
where, whether you're on Wi-Fi or 3G networks. And
whenever you sync your iPhone back to the computer we
sync back the music. It's the same music on your -- on
your iTunes on your computer and iTunes on your phone.
This is a really big step for wireless music on cell
phones, and that starts today -- today -- you can start
using iTunes over your 3G network.
[ Music ]