An Open Letter to Steve Jobs, CEO Apple, Inc.

Dear Steve,

First off, kudos on getting the stock (AAPL) up to over $100. What you've done with Apple Computers, Inc. truly is a thing of beauty. As an Apple Business Consultant, as well as a MacGeek, I love seeing you do what you do. There really is no better phrase in Macdom than Keynote Speech by Steve Jobs. Thank you for continuing to stretch the boundaries of usable technology, and I hope to have an iPhone in my hand very, very soon.

I wanted to write you, though, while I wear one of my other hats. Steve, I run several Brick and Mortar retail businesses. Yeah, I know. It was just a rumor that we are extinct. It gets worse Steve. Both my locations sell music. At least they used to sell music. We're down as much as 33%. That's a lot of $$$. And honestly, I feel that your iTunes Music Store is completely to blame.

I'm not bitter though. As an Apple fan, I know when I'm beat. Your biz model works. You've sold over a billion $0.99 songs.
How can we, as struggling Brick and Mortar stores, compete with the ability to download CD Quality sound straight to your computer? I know I can't compete with a better product...

Wait, it is a better product, right Steve?

One thing always bothered me about your 99cent tracks. 128kbps AAC file, the format that you use to record the tracks you sell. You see, I've bought your tracks and listened to them. It's nice. Then I've listened to tracks I've burned into my computer at 256kbps AAC file. What I found was that my 256kbps files actually sounded better in my truck sound system, in my home theater system, even in my iPod earbuds. But even worse than that was that both of these files didn't sound as good as the CD being played off the disc. I struggled with this, because these "CD Quality AAC files" you're selling, weren't CD Quality.

Nevertheless, these pseudo-quality CD Quality Tracks have done a number on estabilshing you in the music industry. 100,000,000 iPods don't hurt, either.

Then Steve, you did something I, and many brick and mortar shops, appreciate. You announced a partnership with EMI Music to sell "DRM Free Tracks" for $1.29. Steve, you understand DRM Free better than I will, so I won't revisit it here. But what slipped through many people's view is that you announced at the same time... these more expensive tracks are 256kbps AAC files.

Why I love this, Steve, is that you are acknowledging that your billion+ AAC files at 99cent are not comparable to the CDs we sell in brick and mortar shops. Quite literally, you were never really comparing Apples to Apples (pun intended) were you. Higher priced 256kbps tracks tell me that they are a better audio quality track than 128kbps.

Whether 256kbps AAC files are closer to TRUE CD QUALITY remains to be seen. However, to get closer to CD QUALITY SOUND a user has to spend $12.97 to get the highest quality audio possible for iTunes standards (but it's still NOT uncompressed CD QUALITY). And what makes me smile, is that your acknowledgement is letting brick and mortar shops back in the game.

When you announced the iTunes Music Store the cost of a CD in brick and mortar shops were $17.98. Today the average CD is $13.97. When we were battling your 99cent tracks it was ugly. We were losing our shirts. Music sales are dropping significantly. We can't compete with the $9.99 Album. We were chopping our profits in an attempt to match that $9.99 album. However, if we compare Apples to Apples (once again, pun intended) brick and mortar shops do sell a superior product.. But if the public recognizes that the album you're selling isn't CD Quality, and we're selling CDs at practically the same price point as your "DRM Free" tracks... all of a sudden I think we have a chance to survive.

So Steve, thank you for breathing life into a struggling retail industry. Keep pushing $1.29 256kbps AAC files. May we both find profit for a long time to come.

Comments

[Jon Sampson]

Good point, Jeff. It's something I hadn't really considered (which is big, considering I buy basically ALL my music on iTunes. ...

[Oscar Roque]

Yes sir, couldn't have said it any better! The only thing about iTunes is convinience, but you can't beat a good CD.
Just hope that everyone understands this and supports your (brick & motar) stores.

[David Bach]

Of course, I took this nugget and ran with it—but hey, it's what I do. I remain...unworthy.

[Jeff Reed]

And that's why I love David. He's a lot like me, he calls it like he sees it. Check out his blog response to "An Open Letter to Steve Jobs, CEO Apple, Inc." at the link below:

http://rollandrock.typepad.com/davidbach/2007/05/gospel_music_do.html

[Mike Spear]

Right on. However, I doubt Mr. Jobs has the theft problem that we deal with.