How Apple Does It

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If Jobs, say, ran a hedge fund or an army platoon, that talk would not sound so blunt. But because he looks and acts like such a cool guy--this is the guy who put Lennon and Gandhi on thousands of billboards-- the words are bracing, to say the least. And yet that approach produces shiny, innovative things like the new iPod. Even though it costs the same ($299) as its immediate predecessor, which Apple introduced only 15 months ago, the new iPod has more memory (30 GB as opposed to 20 GB), and it's thinner (0.43 in., as opposed to 0.6 in.). Plus, it plays video. The screen is just 2.5 in. diagonally, but because it's extremely bright and very sharp, it looks bigger than it is. It's the kind of thing you could definitely imagine being unable to live without.

There are other portable video players out there, but none look as nice or are as easy to use as the new iPod. And it works well--seamlessly, as Jobs would say--with the iTunes Music Store, which gives users a quick, legal and reasonably cheap way to buy video content (which so far consists of music videos, some charming Pixar shorts and a few TV shows from ABC, including Lost and Desperate Housewives). That is the kind of integration that Apple's approach makes possible.

Right now, nobody disputes that digital music is the future and that Apple is the gatekeeper. If it becomes the gatekeeper to portable video, well, then, golly. Video is the blood and the lymph and the lingua franca of contemporary culture. Music is important, of course, but the scale is different. In a typical week, a top-selling album may move 300,000 copies. A top-rated TV show can draw an audience of 30 million. Add to that movie trailers, animated shorts, old syndicated shows, DVD-extra-style exclusives, and the entire television industry, which is hungry for new kinds of revenue, is going to have to reorient itself. And maybe a few other industries besides (cough! porn! cough!).

The new iPod's potential is so huge, it inspires even Jobs to a burst of understatement. "There is no market today for portable video," he says. "We're going to sell millions of these to people who want to play their music, and video is going to come along for the ride. Anyone who wants to put out video content will put it out for this. And we'll find out what happens." Yes, we will. We're all coming along for the ride, and we all know who's going to be driving.