Thoughts on Apple's "Thoughts on Music"

Steve Jobs posted a surprising, but not shocking treatise on music DRM (Digital Rights Management) on Apple's website on February 6, 2007.
Much has been made of Steve Jobs/Apple's recent treatise of DRM'd music. Specifically, many pundits (ahem, Molly) seem to be wary of Apple's denouncement and are taking a cynical stance on it; it's hard to believe that Apple would be taking a pro-consumer stance on this issue.

I personally believe Mr. Jobs/Apple's declaration against DRM at face value simply because the consumers' interest and Apple Inc's interests are aligned in this instance.

Thanks to CNET's Buzz Out Loud podcast
, we know that consumers benefit from un DRM'd music. No need to explain anything further here.

What is a little less obvious is that Apple would ALSO stand to benefit from repealing DRM at this stage in the game. Here are a few reasons why:

1. Being "trapped" in Apple's fairplay isn't the main reason for stellar iPod sales:
Over the past few years the vast majority of iPod sales were to first-timers. Furthermore, the vast majority of repeat iPod buyers only have a few dozen DRM'd tracks on their iPods. The conclusion that Apple has reached at this time is that they DO NOT NEED DRM to be successful in the PMP market. Apple's near-monopoly is not due to their DRM scheme at this time. People aren't "locked in" to Fairplay. They're "locked-in" to the iTunes' and iPod's convenient interface. Sure, Apple's market share will drop, but it will drop DRM or not; there's no place to go but down when you're at 80% market share. Besides...Apple has other ways to lock consumers into iPods: hook-ups in many new cars, numerous accessories, NIKE + iPod, etc.
By dropping DRM, the iPod platform opens up and becomes more inviting to people on other platforms...people who made the mistake of purchasing a Dell DJ or Rio player, for example.

2. People aren't stupid - DRM is restraining iTunes music sales. People still buy CDs to rip onto their computers because they don't like buying DRM'd music. The stats bear this out: fewer than 2 billion digital tracks sold while more than 20 billion tracks sold on CD in 2006.
Apple currently holds the proverbial large slice of a small pie. Apple wouldn't even mind getting a smaller slice if the digital download (dd) market increases in size. Let's say hypothetically that the dd market increases to 10 billion tracks sold annually and Apple "only" captures 5 billion tracks of sales. Apple would benefit from $250 million in gross margin in this scenario (assuming they net 5 cents / itunes track). That's a number even a company the size of Apple can not ignore.
At this point in time, the easiest way to grow the dd market (and iTunes sales) is to drop DRM. Apple is keenly aware (as noted in Stevo's recent keynote) that iTunes competition isn't Napster or Zune. It's Amazon, Target, and Wal Mart's CD sales. Dropping DRM is the competitive advantage that iTunes needs at this point.

There are a few other reasons for Apple to drop DRM, but the above are a few key points that behooves Apple to drop DRM for their own benefit...as well as the benefit of music lovers everywhere.

Power drain

Cnet gives a brief rundown on power consumption of a few common household appliances.

Here's a summary:
Assuming $0.10/kwh:
42 inch flatscreen TV: 5hrs on per day - $18 - $90 per year depending on the model.
Tivo: $30 per yr
Wireless router: ~$5 per year
refrigerator: ~$50 per year
washer $15 - $50 per year

Kodak: we make cheap ink!

I've been waiting for awhile now for someone to break the HP/Canon/Lexmark stranglehold on world-wide inkjet ink supplies. While everybody is griping about high gas prices and Exxon's record-breaking profits, the really expensive liquid in our lives goes un-noticed: printer ink. Gas is $2/gallon. What's printer ink at? $1000/ gallon?
Well there's very good news coming our way. Printer ink prices are coming down, and we don't have to invade a middle eastern country to do it.
Kodak is unveiling a new line of printers ranging from $150-$300. The big news is that the printer cartridges will range from $10-$15, or about half the cost of HP/Canon/Lexmark's inks. Depending on how much you use your current inkjet printer, the Kodak printers could be a good buy. For me, it will make sense to simply dump my current hp printer and buy a Kodak. The new printer will pay for itself in about 18 months with the savings from the lower priced inks.

Don't buy that new gadget

...unless you really need it. Just because it's the latest thing doesn't mean it's the greatest thing. An article at Yahoo Finance/the street addresses this topic:Do You Need a Better Mousetrap.

iPhone

The rumors were right and yet they were wrong. A video iPod, iPhone, and ultraportable laptop were all anticipated from Apple. But I don't think a single person expected that they would all be built into one slick device. In summary the iPhone is:

true web browser & true e-mail

iPod w/ music, photos, movies, TV

phone & text messaging

Aside from the true web browsing, all of the above are already available for other smart phones (e.g. Windows Mobile), so it isn't such a big deal right?
Well maybe, maybe not. The rationale behind the iPhone's design is solid, but let's see how well it really works. If it functions as advertised, the interface would add value to all of the above functions. If this is the case, it will be a home run.

Sidenote Rules

The utility Sidenote
for Mac OS is an absolute must. It is a little "drawer" that opens when you mouse over to the left edge of your screen. You can then type notes, drag and save images, etc. It supports multiple notes, but doesn't clog up your screen like the built-in Stickes app. As the clincher, it's guaranteed to fit your budget: it's freeware. So be thrifty, but don't be cheap. Throw a donation to the developer if you like it.

Feed The Pig

How is it possible to save money? Feed the pig.

"Show me the money!"

That's not likely to be what you say to a prospective employer at your interview or your boss at your job, but Payscale.com might change that. The site prompts you for basic info: job title, location, experience, etc. Then, with free registration, you can find out what other people like you make. Payscale does indeed show you the money.

Crashing

I've no problem crashing at a relatives' home or a friends' home while travelling. But a strangers' home? Yeah I'll consider it. Thanks for the tip, D. Go couch surfing.

Here's a brilliant commercial. It basically makes the point of this blog very concisely. Some might argue that it should've been a bunch of Priuses coming at you at the end, but still, the ad is very very well done.

Are you paying too much for rent?

Looking for an apartment? Wondering how much to spend for rent?
Rentometer is for you.
There's a line between being cheap and looking for apartments in the 'hood and being thrifty and just making sure you're getting a decent deal in the neighborhood you want to live in. Rentometer can help you whichever side of that line you're on. Simply type in an address, the type of rental (1br, 2br, etc), the rent you are paying/willing to pay and see actual rents nearby pop-up on a googlemap style map. If you've heard of better tools, let's hear 'em.

Some Phones Are Just, Well, Phones - NY Times
400 GB 7200 rpm internal hard drive for $99 - Hard drive prices are falling like a brick. Or is it bricks that fall like hard drive prices?

Google to Push for More Electrical Efficiency in PC’s- NY Times

Techie Cred? Maybe not. Thrifty Cred? Definitely.

So you wanna know about my cred, huh? OK. Here's a run-down:
PORTABLES:
My phone is a Sanyo SCP-4700 from 2003. It packs a vintage teal electroluminescent lcd display, backlit buttons, a handy red led indicator (see pic) to warn me of voice mail. It has more than a dozen built-in ring tones (including hits like Pachelbel's Canon), speaker phone, etc. The features go on and on, really. The size is handy too. It's far more solid than your RAZR! It's pretty amazing to consider all this was free after I signed on with Sprint PCS.

My iPod is a 3G 10GB from 2003. Received as a graduation present, it's still going strong.
COMPUTERS:
My wife and I have two computers. A 12" iBook G4 800 Mhz/640 purchased new in the fall of 2003. We also have a 15" G4 iMac purchased used off of eBay in the fall of 2005.
HOME ENTERTAINMENT:
Still rockin' an Aiwa 3 disc, dual cassette shelf system. (For the kids out there, the dual cassette decks were for dubbing tapes...sort of like copying MP3 files) We've got a Cyberhome DVD player/burner and a 20" Panasonic CRT standard definition TV. No TiVo or DVR.

That's it! How does your set-up rate?

Starbucks Raises Prices, Australia supplies Cocaine

Any successful drug dealer knows to raise prices when demand is high. Accordingly, America's favorite drug lord Starbucks is raising their coffee prices citing mounting expenses involved in their trade. While Starbucks' professional-type patrons have deep pockets, Dunkin' Donuts is giving away coffee hoping to drum up demand in the 'hood, apparently.

Meanwhile a new player is delivering a high-quality product called Cocaine. In a not-so-subtle move, Cocaine is simply delivering more bang for the buck with 280mg of caffeine per serving (see graph above). In addition, Cocaine contains lots of vitamins and dextrose; probably to take the edge off the inevitable crash.

Here's a user's guide to America's favorite drug.

CFL bulbs: A bright idea.

We hear about the environment a lot these days what with hybrid cars, global warming, and alternative energy sources regularly in the headlines. Often times thinking about the environment means making tough sacrifices such as spending thousands of extra dollars on a hybrid car in order to save gas, or sitting and listening to Al Gore drone on for 90 minutes about melting glaciers.

Sometimes being environmentally correct is very easy, however. That's what makes the compact fluorescent lightbulb (CFL) story so remarkable. It's the rare technology that's economical in every sense of the word, saving money, time, and electricity.

CFL technology has been around for years as an energy saving alternative to the "regular" incandescent lightbulbs. Despite using about 75% less energy than equivalent conventional bulbs and lasting ~8x as long, CFLs were "prohibitively expensive" for consumers, costing several dollars per bulb (compared to a buck for four regular bulbs). Thus, they weren't popular.

Today CFL bulbs still deliver energy savings but at much lower initial cost than in years past. Thanks in part to a push by Wal Mart these light bulbs are now much cheaper and should be used by everyone. Although these bulbs are still about 10 times more expensive than conventional bulbs (which is to say, just $2 or so) they are one of the best investments that everyone can make. The energy they save over just a few months of usage pays for the cost of the bulb. After that, it's all gravy. The bulbs last for many years which means no changing bulbs and no buying new bulbs. And over the lifetime of the bulb one could save about $40 worth of electricity. Good for the wallet and the environment.

Switching from conventional incandescent lightbulbs to CFLs may seem like a mundane action – frankly you may not even notice the $4 monthly savings on your electricity bill – but the energy savings can be enormous given that it is the type of action that everyone can take part in. 100 million CFLs used instead of regular bulbs would reduce green house gas emissions as much as taking a million cars off of the road.

Lightbulbs. So boring, yet so amazing. Next time somebody shows off their Prius or wants to make a movie about saving the spotted owl, tell 'em you've got a brighter idea: you're gonna go change a lightbulb!

update: feature CFL article in Fast Company.

biodegradable iPod dock

Props to flickrflick151 for this resourceful idea. =)

What do you want?

There's a lot of great tech stuff that's in development. What things are you looking forward to? WiMax? WiFi calling? On-demand or downloadable TV content? RFID?
Maybe you're a dreamer and you want teleportation? Or maybe Microsoft Vista?

Hey, at least I'm asking. It's more than I can say for Sprint offering streaming movies on a cell phone for $4. Surely you have some better ideas?

new iPods: analysis (September 12, 2006)

I've just finished digesting the Apple announcements from and I'm now ready to egest, so here it goes:

The iPod 5.5G w/ video and 2G nano were solid updates and were unsurprising. Apple made incremental, important improvements (+ screen brightness, + battery life, + storage capacity) and added search by alphabet functionality. There was no surprise in that Apple continues to add value to their iPod line incrementally while eschewing price drops, using engineering and brain power to prop up their revenues. Incidentally, the biggest surprise for me in their new iPod announcements was that they DID cut the price of the 30 GB iPod w/ video to $249. Meanwhile, he attention that Apple paid to developing their entry-level / ultra-portable shuffle proves that they are intent on canvasing the PMP market.

Pricing scheme:
iPod shuffle 1GB: $79 ($79 per GB)
iPod nano 2GB: $149 ($74.50 per GB)
iPod nano 4GB: $199 ($49.75 per GB)
iPod nano 8GB: $249 ($31.13 per GB)
iPod 5G 30GB: $249 ($8.30 per GB)
iPod 5G 80GB: $349 ($4.36 per GB)

Of course, all the new iPods look slick, but anyone that still dismisses the iPod as faddish or merely fashionable is missing the shrewd positioning of the current iPod line:

5.5G w/ video - the 80GB model may be more expensive than the upcoming microsoft Zune (can't tell because pricing hasn't been announced, and may have been disrupted by Apple's release) but trumps the Zune's 30GB capacity by quite a bit. Meanwhile the 30 GB iPod is the cheapest iPod ever and undercuts Zune's pricing. In short, the two new 5.5G iPods are Zune's rock and a hard place this holiday season.
iPod nano - best value for a small-sized mp3 player.
iPod shuffle - interesting because it's so cheap. It serves as an entry-level iPod. Also will sell to iPod and iPod nano owners because the sheer (lack of) size adds a lot of utility. Leave on in your car, or keep it on you despite the fact that you already have a PDA or phone that can also play music, excercise with it, etc.

Summary: iPod continues market leadership with class leading design, solid specs and value.

We can never forget 9/11/2001

Few tech blogs will address the 5 year anniversery of the most heinous act of our lifetimes. But remember that the heroism on the plane that crashed in Shanksville,PA was made possible by Americans' trusty cell phones and that hundreds of lives at the WTC were lost because of failures in basic radio technology. As we go forward, preventing such future attacks depends on the interactivity of human effort and technology.
Those events of 9/11 transcend tech issues, of course. But tech had a direct bearing on the events of that fateful day.