We've heard rumors about this before, but now the New York Times (via MacRumors) is pretty much coming right out and saying it. Apple was ready to give up their uniform pricing model ($0.99 per song) over a year ago but they wanted not only DRM-free licensing in return, but over-the-air (cellular) iPhone downloads. It seems many, including Apple and the music industry, think that's the Next Big Thing.

Still, things were tense down to the last few moments before the big Macworld 2009 announcement:

All the labels agreed except Sony Music. Its chairman, Mr. Schmidt-Holtz, wanted the pricing to go into effect right after the announcement, while Mr. Jobs wanted a longer time horizon. According to a person briefed on the telephone call, Mr. Schmidt-Holtz and Mr. Jobs had a heated exchange by phone on Christmas Eve. Eventually, Sony gave in and agreed to a longer waiting period.

With Steve Jobs (the smartest man in music?) on leave of absence, however, don't think things will get any easier for the historically out-of-touch music industry. Insiders report that others inside Apple, including iTunes VP Eddy Cue, follow Steve Jobs' line.

Apple and music aside, what does this mean for -- you know -- the end users? How important is downloading music over the cell network to you? Will it make you buy more music? And will some songs being cheaper, and others more expensive, change you buying habits as well?

• Our podcast feed
• Download Directly
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Background Reading

• TiPb at Macworld 2009 Keynote Live Blog!
  • Macworld 2009 Keynote Photos
  • Macworld: New iLife iPhoto 09 Integrates Slide Shows for iPhone
  • Macworld: Apple Announces Keynote Remote App for the iPhone
  • Macworld: Direct Music Downloads for the iPhone via 3G (Updated: and EDGE!)
  • Macworld: iTunes Goes DRM FREE!
• Macworld: SlingPlayer Mobile for iPhone Demo Video
• Macworld Expo Galleries
  • Day 1 Gallery
  • Day 2 Apps and Devs Gallery
  • Day 2 Accessories Gallery
  • Day 2 Redux Gallery
• Leo Laporte-Note Live-to-Post Blog
  • Leo Laporte-Note Gallery
• Macworld 2010 Offering Free Registration
• Will Apple go to CES 2010 Instead?

News

• TiPb Still Predicting iPhone HD: Now with More PowerVR and Quad Core!
• Confirmed-ish: iPhone Product Cycle = June
• Google Shows How To Quickly Archive Gmail on the iPhone
• Apple Approves 3rd Party WebKit Browsers for the iPhone
• Rumor AT&T Reducing Tethering Charge to $10
• MORE iPhone nano rumors: in June, not in the USA.
• Apple Q1 Conference Call Next Wednesday - iPhone Live! to Follow
• Microsoft's Ballmer No Longer Laughing at iPhone
• Palm Pre-Free Zone this Week

Credits

Thanks to the the iPhone Blog Store for sponsoring the podcast, and to everyone who showed up for the live chat, or sent in questions!

Our music comes from the following sources:

• I Called You -- iPhone Remix by Pete Leidy
via Sneakmove iPhone Ringtone Challenge

CLICK HERE TO GO LIVE!

We missed iPhone Live! last week due to the hectic pace imposed by Macworld and CES, so just like last time when yours truly invaded Phone different, this time Phone different is invading iPhone Live!

Join me in joining TiPb's editor-in-chief, Dieter Bohn, and editor-emeritus, Mike Overbo, for a special Macworld-roundup edition of Phone different on iPhone Live tonight at 8pm EST.

And did we mention we'll be giving away one of the custom TiPb branded Element Cases to one lucky live chatter? That's right. Get the details tonight via:

http://www.imore.com/live/

See ya there!

See our live-to-text blog of Leo Laporte's Macworld 2009 address on New Media for all the details, but for the pictures, see just below the break!

Leo Laporte of TWiT fame's Macworld 2009 Keynote. Be sure to check out our photo gallery as well. All the highlights after the break!

• Leo is on stage, using Keynote 09 and the iPhone Keynote remote app!
• Slide 1: End of the world as we know it, but he didn't mean Macworld!
• Best thing about Macworld is meeting like-minded people, has to keep going but may be different
• Media is changing anyway, so maybe this is a good time.
• Not end of Macworld but end of mainstream mass media.
• Already his iPhone is asleep, hope that's not a sign - may be to bleeding edge even for him
• Showing young Leo on slide show, using pseudonym Dan Hayes.
• Wants to explain he knows old way of doing things.
• He's seen the light, and wants to explain how great things will be.
• He gives this speech to old media guys, but he has to lie to them say they can find a way to make it work..
• Started with Dvorak, Ziff Davis called, and when Microsoft made MSNBC, they wanted to compete with a show called The Site.
• Too depressing, doesn't want to show us, but has clip of Dvorak demo'ing 286 PC. Pathetic.
• ZDTV and TechTv gave chance for non-mainstream - different
• Throw out old model, assume audience is intelligent, enthusiastic.
• Was Chinese history major in college, likes history, wants to give us some
• Mass media was coined in 1920 but has always been some. People like to share back to cave paintings back in stone ages.
• Theater was first mass media, 250,000 people could be seated in Rome, great accustics.
• Travelling minstrels could reach people.
• Moveable type/printing press helped but economics were tough, hugely expensive
• Guttenberg is example of kind of shift we're seeing now
• TV didn't replace radio, but Leo thinks we now have a greater shift
• In the beginning, they only printed bibles, just faster, but a generation it took to start doing interesting things - The Price, novels, Luthor's reformation, scientific revolution.
• Newspapers went broader still, country. Movies go international. True mass media as we know it.
• TV reaches huge audiences - 2.5 billion watched World Cup
• Internet blows this all up. Global Audience
• Mass media = monopoly, only richest could afford to publish/distribute
• Because it was expensive, you needed a mass-audience
• If you wanted to broadcast, had to beg someone who owned tower.
• Early days, anyone could paint on cave wall, play a guitar
• 1920s, only a few could decide who got voice -- but now the monopoly is shattering
• High cost meant diversity of voices was mall (last 100 years, not normal)
• Brains are tribal, understand small groups and communities, talking to each other. We prefer conversation
• Monopoly disolving, anyone can publish now.
• On YouTube, anyone does!
• 1 Billion now have distrobution, voice, chance to put content out
• Not like 3 anchors of traditional TV who controlled agenda.
• When Cronkite gave up on Vietnam war, was powerful enough to effect country
• Cost of content also dropping. Before, to be rock star, had to borrow from studio but never got profit back. TV, radio, same.
• Big media can't control content or creators now, but could control editorial
• Doesn't think they'll do a good job, but have to give them something
• Ultimately, will have to become one of us
• Diversity changes, narrow band dissolves, we can all create
• Now we can talk back. Media hates that!
• Leo did well because he was from Talk Radio where people always talked back.
• Generally most try to control too much, hang up, control. Play you as instrument. People who call in are fodder
• But it was closest thing.
• Audience is turning into communiity, monolog is turning into conversation
• Back to early days when audience talked back -- most important thing
• Mac lovers really get this: digital content/Mac empowers creating and distributing
• A thousand flowers bloom
• Let's talk about Money -- someone has to pay you
• One engaged community member is suddenly worth a lot of less-engaged, passive listeners and advertisers are beginning to notice.
• TWiT can succeed because relatively cheap to make, and advertisers prefer intelligent audience they're engaging.
• People listening to mass media are very loosely engaged, skip ads, TiVo.
• Advertisers want people to pay attention. Can't go to audience as pitchman, have to come as member of audience.
• Markets are conversations, not pitching, not tricking to create need where none exists
• Advertisers need to come as equal and offer what you might like, ask you to try it
• Advertisiers are having hard time with this, haven't caught up, only sharp people
• LONG TAIL! Go Dieter!
• Right hand side is best sellers who make a LOT of money. The rest make less. The Thin part can be as much as the best sellers. Amazon knows this, can capitalize on it. Same with Google Ads.
• Is shifting, however. Problem for content creater. Tiny slice is Leo!
• Aggregators make money, put it togther: Podango, Meevio, put a lot of shows together to get long tail. Didn't work.
• Isn't what community wants, is disperate communities now. Lots of us now with thin slices.
• Growing, aggregating by community.
• TWiT downloads 2-3 million shows per month. Group is growing but not by diversity, but by community of common interest.
• TechTV didn't understand this, wanted to broaden to get Long Tail, people who don't like technology
• Leo: are you crazy? Like ESPN doing show for people who hate sports.
• Should use laser focus!
• Old media guys can't get head around it, think there's no money in it.
• TechTV said "Brand is the refuge of the Ignorant", mantra of TechTV.
• Didn't want smart viewers, who choose on quality not tricks.
• Old school might be right, new way is wrong. Now assume you are intelligent, interested.
• NBC boss once came in with 3-piece suit and cowboy boots with Henchmen. Leo and Ziff Davis had 90-page treatment for site.
• Boss said he really liked it, then cancelled as soon as they could. (Same studio as TechTV).
• They believe viewers are cattle, afraid of intelligence. TechTV was to avoid word "educational"
• Leo didn't want to talk to stupid people, doesn't care if audience of 5
• TWiT was without apology, Geeky as can be.
• Steve Gibson -- nerdiest fellow he ever met
• Quinty Venty Latte - 5 shot latte before every show.
• So enthusiastic, loves getting down to details. Writes everything in Assembler.
• Leo likes that, kind of guy he wants to put on the air.
• Doesn't want broad, dumb network.
• For many people who run tech, it's foreign language, don't want something on air they themselves don't understand.
• Now he turns down advertisers -- they want engaged audience.
• Doesn't want ads that tick people because audience is too smart.
• Radio now changing -- still doesn't understand but knows he's selling out ads.
• TechTV never got it. Not bitter, but SO many stories.
• TechTV did create this, Kevin Rose/Rev3, Patrick Norton. Unfortunately, runners were still old media, wanted tall part of tail.
• TechTV wanted Apple, Microsoft of Screen Savers. NO! Not vendor spots. Okay, how about Cleavage?! Maybe if you have cleavage, more people will watch.
• TV people listen with sound off, not about content, only looks. Million dollars on Tech Live studio (what put them out of business).
• Kenny Rogers talking about iPod was when it jumped the shark for Leo.
• All of a sudden it became cheap, bandwidth, Skype, 30% audience outside US, 60 counties.
• Bad for advertisers, don't understand multi-national. But are slowly getting it.
• TWiT and similar audiences are now growing and "best sellers" are shrinking.
• Now FAT SHOE
• Getting fatter and fatter, but have to know how to work it and what it means.
• Starts with bloggers, always leeast expensive form. Now music, which is template for mass music.
• Jonathan Coulton is example. Sells out venue. Discovered new way of doing it.
• Builds community, doesn't sell ads, makes money of concerts.
• Promotors now ask for mailing list, website, community, band has to show they can fill seats.
• Pointy part of tail shrinks, less platinum artists, more Jonathan Colton.
• Makes a living, and soon will have platinum artists without record labels.
• Big blogs like HuffPo doing very well aggregating.
• Need large community but not too large -- need that niche.
• Conferences are changes. Now un-conference are most exciting. Everyone can contribute.
• Can be commenter (not Troll, though they unite commenters in defense/anti-body)
• Podcasting is kind of in trouble, reached largest number of listeners, not growing, most don't make money.
• Leo says don't care about money, podcast what you care about, build audince, let chips fall where they may.
• May not make living but time is coming where you can.
• Being on Twitter is creating content -- compelled to participate. Facebook the same, don't just read pages.
• Chat room is a way Leo tries to increase participation, wants to give people as many ways of communicating as possible.
• Knows it's working because when show ends, chat room keeps going.
• Evangelists have roll as well.
• Need to build that fat shoe.
• Content creators need to understand that they're also consumers.
• Consumers whant content where, when, and how they want it.
• TiVo changed TV, podcasts changed when you listent. Play when you want, pause when you want.
• What's missing is immediacy of community.
• Real time web is important.
• Beetles on Ed Sullivan. Everyone could talk about it next day. Lost via asynchronus on-demand consumption.
• But we want it all. That's what makes real-time web exciting.
• That's why Leo streams video, wants you to be real time.
• Bottom line, consumers want content.
• People spending more than ever before. Plenty of connsumption.
• Great news for content creators.
• Economy will make it harder to make money right now, but "good thing" is that it's hastening the end of old media.
• No print versions any more. If you want it -- you'll print it out.
• Forcing capital-intesive media to find new ways.
• Huge talent pools. CNN sorta gets this.
• What will happen for CNN is two things left: aggregate "our" content and editorialize
• Doesn't give CNN monopoly any more.
• You could do knitting or hard drive network -- more narrow is better.
• Deeper the niche the better.
• Problem is, when CNN was created, it was cheap compared to mass media, but now expensive compared to new media. Costs much more.
• Audience sizes for new media are now comparable, but better audience.
• THE TREND IS NOT THE TOOL
• People think its all about twitter, facebook, etc. but the tools will change.
• Friendster failed. Podcasting or blogging may not do well, but those are just tools.
• The way is towards active, highly engaged participants.
• Isn't that what we want?
• When socienty is disrupted, people withdraw. When industrialized, people turned to alcohol. Now mass media caused people to retreat to sitcoms -- same as Gin in London. Can't handle it. Too much.
• But we're now emerging and learning to deal with wash of info, love participating.
• Era of Mass Media was Mass Delusion. Crazy, money and economics of content. 100 years.
• Like JR in shower, just a dream. Now we're waking up.
• Burdon now is to participate. Will be tough times, but not a bad thing. Hasten death of old media, rise of new media.
• What's your role?
• Finding community of common interest is extrenely satisfying.
• Why watch Gilligan when you can create.
• Apple gave us great tools. Feels bad for Windows people but they went to CES...
• Windows people have to beat their head against wall to make 1 movie
• Mac users lucky, can easily express themselves.
• Won't make a million dollars selling out to Yahoo!
• Find personal thing, what expresses you? World is waiting.
• Exciting time!
• So much more fun on Live-Cast and chat room.
• Leo invites us to do this.
• We're now all a part of it.
• On behalf of old media, Leo gives up. Hopes we enjoy new media.
• END.

The great folks at Smule were kind enough to show Ocarina the way it was meant to be played. Personally, I can barely manage anything more than an asthmatic wheeze and a dying note or too...

How are you doing with Ocarina? What can you play?

TiPb typed our iPhone-loving fingers off yesterday, the first day of Macworld Expo 2009. If you missed any of our coverage, here are the links below. Now we're off to day 2, so check back soon 'cause we'll be bringing you the best and the brightest iPhone apps and accessories we can find on the show floor. We'll also try to Twitter as much as we can in between posts via @theiphoneblog and @reneritchie

• TiPb at Macworld 2009 Keynote Live Blog!
• Macworld: SlingPlayer Mobile for iPhone Demo Video
• Macworld: Exhibition Day 1 Photo Gallery
• Macworld: New iLife iPhoto 09 Integrates Slide Shows for iPhone
• Macworld: Apple Announces Keynote Remote App for the iPhone
• Macworld 2009 Keynote Photos
• Macworld: Direct Music Downloads for the iPhone via 3G (Updated: and EDGE!)
• Macworld: iTunes Goes DRM FREE!

We'll do a more thorough Macworld 2009 show floor walking tour, but here are some quick shots we grabbed after the keynote. Enjoy the gallery, after the break!

Apple has posted a streaming Quicktime video of Phil Schiller's Macworld 2009 Keynote, covering iLife 09, iWork 09, the unibody 17" MacBook, and iTunes Plus -- and more importantly for us, iPhone 2G/3G music downloads, the Keynote Remote App, and iPhoto slide export for the iPhone.

If Apple stays true to form, the event should also show up in their iTunes Podcast Keynote Feed some time soon-ish. Meanwhile, watch it now, and let us know what you think!

Not only did Apple introduce a new version of their flagship iLife 09 (see our MASSIVE Live Blog!), Phil Schiller demonstrated an awesome new feature for iPhone and iPod touch users: direct export of slide shows to iTunes!

Along with some truly gorgeous templates and amazing transitions, the ability to make them mobile -- so you can easily take them to show family and friends -- is killer for iPhone and iPod touch owners.

iPhoto 09, and the rest of iLife including the equally tremendous upgrade to iMovie, ships in late January free on new Macs, $79 for a single user, $99 for a family pack.

MUST HAVE IT NOW!

Keynote users rejoice! As part of his Macworld Keynote today (see our MASSIVE Live Blog!), Phil Schiller announced a Keynote Remote App for the iPhone! Connect via WiFi and Boom! In portrait view you see your slide and notes. Rotate to landscape mode and you get current and next slide.

Where does the control come in? Where else! Swipe to switch slides!

The App (if approved, and not using any sneaky API's - haha!) will cost $0.99 and looks all shades of awesome.

You saw the epic liveblog, now see the photos.

We have the deets in photo on the new 17" MacBook with the ridiculously large 8 hours of battery life, the fact that iTunes is going 100% DRM-Free, the new iLife with GarageBand Music Lessons, iMovie's stunning upgrades, and iPhoto's geo-tagging and face-recognition, and also the new iWork with Keynote -- which now has an iPhone-based remote for switching slides and reading your notes.

Um, yeah, this was a huge Macworld for Mac people -- and the iTunes DRM news and the Keynote news were incredibly great upgrades for iPhone owners.

Makes you weep that Apple will never go to a Macworld again, don't it?

During his Macworld Keynote (see our MASSIVE Live blog!), Phil Schiller today announced the death of the iPhone (and iPod Touch) WiFi Music Store -- and the birth of the WiFi and 3G Music Store!

Yup, iPhone 3G users can now browser and directly download music over the data network for anywhere, anytime access to new music.

UPDATE: Daring Fireball says downloads work over 2G/EDGE as well!

It seems to already be working, and working in multiple countries (including Canada! Yay!)

Have you downloaded any music directly to your iPhone yet? How did it work for you?

Phil Schiller, during his Macworld Keynote (see our MASSIVE live blog!) today, announced -- as rumored -- that iTunes is going DRM-Free! 8 million songs will be available in higher-quality 256-bit, DRM-free iTunes Plus format immediately, the remaining 2 million or so songs following by the end of the quarter.

In order to wrestle this concession from Big Music, however, Apple had to give them a concession of their own: variable pricing. Apple had long resisted this policy, preferring the unified $0.99 model (a brief flirtation with $1.29 iTunes Plus pricing not withstanding). Today, however, Schiller announced a 3 tiered structure:

• $0.79 for older, catalog songs
• $0.99 for mid-tier
• $1.29 for premium (hot new singles?)

Upgrading will cost $0.30 per song, $060 per music videos, and whole albums for 30% of the album price.

So, is it working for you yet? And are you upgrading? Or just buying new song?

We're all finished folks! Gallery of the images we took during the keynote coming soon, meanwhile restart the liveblog above for Rene's incredible play-by-play, it's practially a transcript of the entire event. Don't be fooled by my (Dieter's) name next to the updates, it was all Rene's lightning-fingers giving you the updates.

Update: We've added a bootload of photos of the 2009 Macworld Keynote. Go take a peek!

While the recent coverage of Steve Jobs and his health has ranged from the respectful to downright tabloid blogism, Apple and their CEO have remained their usual utterly-silent selves. Until now. In one of his rare open letters -- and the first ever on personal matters -- Steve Jobs says:

I’ve decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow.

The letter does not directly say he dropped out of Macworld for health reasons, and therefore technically should not vindicate some of the more disturbing speculation we've seen lately. Jobs concludes by reaffirming his goal of always putting Apple first, and hopes the Apple community supports him in his recovery. Apple's Board of Directors put out a simultaneous release re-stating their support as well.

For TiPb's part, we hope everyone joins us in wishing Steve Jobs a quick and complete recovery, and a healthy and happy 2009.

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This week, Rene manfully takes Mike's place in the podcast as we talk about our MacWorld predictions.

News

• MacWorld
  • No Steve
  • iTablet
  • Apple Media Server
  • Mac Mini
  • iPhone Nano
    • Case-based rumors
    • Color Pics Fake
    • If it happened
• iPhone 3G Unlock
• Speaking of Holiday Gifts, App Store Boomlet
• MobileMe Fixed Up
• New MultiTouch Patents Point to Cut and Paste
• iPhone Pro: Do. Not. Want.
• Et Tu, Twitter?
• State of the Apps
• AT&T Outage
• Round Robin

How To

• Have you seen our sweet howto index?
• Have you seen our sweet forum review index?

Store

Community

Thanks to Paul and Shaun for contacting us!

• eek, iPhone cable tears
• recommending products to apple they generally frown on that

Credits

Thanks to the the iPhone Blog Store for sponsoring the podcast.

Our music comes from the following sources:

• I Called You -- iPhone Remix by Pete Leidy
via Sneakmove iPhone Ringtone Challenge
• Relaxation Spa Treatment by Dan the Automator via Wired 12.11: Sample the Future
• Wataridori 2 by Cornelius via Wired 12.11: Sample the Future
• DC 3000 by Thievery Corporation via Wired 12.11: Sample the Future

Preparations are being made, packing and unpacking is being done -- and from these pics posted by SetteB.it (via Giz) we can see Apple is mounting their last ever Macworld booth (aka Apple Store Mobile). 2007 was the iPhone. 2008 was the MacBook Air and Time Capsule. 2009 will be... whatever's lurking beneath those pantone black curtains?

iPhone nano? Media server? New Nvidia-powered iMacs and Mac Minis? Netbooks? iTablets? Steve Jobs with a full-on puppeteering kit for the new, animatronic iPhil?

We'll find out in a couple days, and TiPb will be there live to cover it!

Meanwhile, looks like January 4, 2010 will be the kickoff time next year. And as for the theme? Check it out, after the jump...

Next week is the first big Apple show of the year, and it's also Apple's last Macworld appearance, and the first not to be keynoted by Steve Jobs since his triumphant return to the company he founded.

But while his Steveness may not be there, Dieter and I (and maybe some of our writers) will be, bringing you our usual coverage of the Schiller-note (how weird does that look?!) and the show floor.

And if you happen to be there as well, please make it a point to say hello. If you're curious what we're up to, you can follow us on Twitter: @backlon and @reneritchie, or email us via news@theiphoneblog.com.

(If our blogging schedule looks a little wonky next week, please forgive us in advance, we expect things may be a little hectic).

We look forward to seeing everyone there, and reporting back for everyone at home, especially if we get to see a new iPhone firmware or... hardware SKU?

Anyone care to make any predictions in advance?