LIVE BLOGGING: Apple adds YouTube to AppleTV

I am going to try and live blog Apple CEO Steve Jobs’ interview at the D Conference.

Steve Jobs comes on stage, wearing the all familiar turtle neck and jeans.

Apple is in two businesses today and we will be the three busienss soon. We love our mac business, and there is the music business. Those are two $10 billion business. And we will be in the phone business soon.

AppleTV is hobby. Everybody has failed and we are trying, and we are going to improve that over next year -to 18 months, we will get better.

Market Share of Mac Business: We are steadily trying to improve things, we make the best notebooks and desktops in the world. We sell more notebooks than the industry. Notebooks will be 80 to 90% of what we will sell. That time is going to come.

Switch to Intel was the big transition, and we did it very well. Growth that we have seen over last several quarters has been three times the market growth. If you parse out the US numbers, we are five times the market growth. Worldwide our market share is 3%, and US is between 5-to-6%. US retail we have double digit market share.

Apple Inc. name change: Totally commited to the computer business. Lepoard roll out at WWDC and it will ship in October. We are commited to that business.

Shows off iPhone and says, best iPod we have ever made. We will SHIP IT IN LATE JUNE.

Cingular, the new AT&T, like the old AT&T. Cingular has been great to us. They have a done deal, which they haven’t done a deal like this before. They broke a lot of rules. We didn’t show them the phone. Cingular invested in us, and took a gamble on us. And we took a gamble on them. I will never forget that.

Why they did it? Music on phones hasn’t been successful, and they wanted to do something good about that. iPod on the phone can do that. They are spending a lot on 3G and people haven’t vote with their pocket. I think the Internet experience is bad. You get baby internet, mobile internet, or something bizzare. We want to deliver the real Internet experience.

US number is smaller, and we are primarily selling in US (and in Europe to some extent) and we are new comers.

Right now its EMI an there is thousands of independents are coming on board, as quickly as we can encode their music. You can upgrade to iTunes+ song for additional 30 cents. We can do it automatically. The music companies ship all their music DRM free – in CDs. People are willing to pay more for DRM free, and we were successful in persuading EMI an hopefully we can persuade others to offer DRM free.

iTunes tracks are less than 25 tracks per iPod. I think they are clearly not getting majority of their music from iTunes. The whole notion of us being a lock is just ridiculous. If we have best music player, we will sell more iPods, and if we have the best music store, people will buy music from the iTunes store. We better make the best music player if we want to keep winning.

iPhone is the best iPod we have made. It is a great cell phone we made. We have revolutionzed the cell phone. And it is internet on your pocket. If it was anyone of the three, we would sell a lot. Its all three, and they play off each other.

If you want to hire bright and creative people, you can’t over rule them. You can do that once or twice a year.

No debate about the physical keyboard.

(Walt asked no one suggested that?) None.

Once you use the magical display, you can’t go back. We have a better keyboard. I bet you dinner, a week after you get your hands on that, you will like that. I think it takes a week, and you need to learn how to trust it. We can use that physical space when you don’t need the keyboard.

How much time you have before people copy iPhone? If you zoom out of the whole thing, why does iPod exist, or why Apple is succeding. That is because the Japanese CE companies couldn’t do is software. It is software in the device, mac, and on the store. Software wrapped in beautiful package. Japanese CE companies couldn’t take that leap.

The handset is similar. They know hardware but haven’t been made the software leap. Micorsoft software is of certain caliber. iPhone is software wrapped in beautiful design. I think software is 5 years ahead of anyting we have done. We have spent years doin this, and had an OS that we have worked on that for decade.

Will Mac App run on the phone? We don’t think it is a good idea because there is no mouse.

Why do you call AppleTV a hobby? What every body has tried is that coming from computer market, you think about getting content from your computer to your TV. I am not sure that is what consumers want. More we think about it, they are like peas. We think the content from the Internet is the real play.

Doing Demo of Apple TV live streaming from the web. We wre going to sell 100 millionth TV show this year. The movies and shows are stored on your computer and can be streamed.

What we are going to do today, introduce something we announced in the morning. Incredible things is YouTube. It would be great if they can get YouTube on your living room TV. We worked on them, and we are announcing that YouTube as an add-in to AppleTV, and it is a MENU ITEM. (LOOKS GREAT)

We got this working, and we watched a ton of this stuff. It turned out to be pretty cool. You search from the interface and you can find a lot of things through that. So how are the videos looking better. You get what you get, its amazing how fun these things are.

This is the first additional feature on AppleTV and get internet video. I think this is a good idea, and we are going to see a collection of interesting things. Hobby, because it is provcative. iPod started off like that. It started off small, feeling like this. Its not a set-top box. That’s not how we look at it. We wanted to do it for a few years. We can’t replace the set-top box. You have to go through the cable companies. We didn’t do it, and do a go to market strategy like that. We didn’t have to replace set-top box. We have to be DVD player for the Internet age.

300 million copies of iTunes (or more). They are on Windows computer…. statistically. People like it so much say that it is the best app on windows. Its like giving someone ice water in hell.

The scale of lot of things we are doing is surprising me. I didn’t think we would ship a 100 million iPods. It is a big number of us.

Video on portable devices? I was more skeptical than customers. iPod video proved us wrong, and video has been the #1 or #2 reason why people buy that product. Video is here to stay on protable device.

Over the air downloads? People have tried with music and it has failed. Phone is not a great place to discover an browse large libraries. I think you have to sync it with your PC anyway. Why not just buy on a PC and sync to your phone. People know how to buy music on computers.

Out of battery. Signing off now.

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