{"id":43,"date":"2005-06-08T09:16:48","date_gmt":"2005-06-08T16:16:48","guid":{"rendered":"http:\/\/lefsetz.com\/wordpress\/index.php\/archives\/2005\/06\/08\/the-switch-to-intel\/"},"modified":"2005-06-08T10:06:38","modified_gmt":"2005-06-08T17:06:38","slug":"the-switch-to-intel","status":"publish","type":"post","link":"https:\/\/lefsetz.com\/wordpress\/2005\/06\/08\/the-switch-to-intel\/","title":{"rendered":"The Switch To Intel"},"content":{"rendered":"<p>It&#8217;s about tomorrow.<\/p>\n<p>Could Apple Computer be any hotter?\u00c2\u00a0 Shouldn&#8217;t it scale down development and <br \/>return value to its shareholders?\u00c2\u00a0 Isn&#8217;t that the goal of a corporation, to <br \/>deliver for shareholders TODAY?<\/p>\n<p>No, the goal of a corporation is to deliver value for shareholders LONG TERM!<\/p>\n<p>Dick Parsons didn&#8217;t believe in the music business.\u00c2\u00a0 Bertelsmann didn&#8217;t <br \/>believe in the music business.\u00c2\u00a0 Howard Stringer doesn&#8217;t believe in the music <br \/>business, otherwise he wouldn&#8217;t have hired Andy Lack.\u00c2\u00a0 EMI is too fucked up to even know what&#8217;s going on.\u00c2\u00a0 And Universal, like its old leader Lew Wasserman, <br \/>believes in CONTROLLING the future, the company believes in utilizing its legal <br \/>department as a profit center.\u00c2\u00a0 Universal is single-handedly holding back the <br \/>future of music.\u00c2\u00a0 First, by bullying its major label counterparts in the early <br \/>twenty first century and now by suing Bertelsmann to get money for that company&#8217;s <br \/>funding of Napster.<\/p>\n<p>Hank Barry badgers me with new ideas to save the music business.\u00c2\u00a0 He can&#8217;t <br \/>understand why the major companies don&#8217;t wake up.\u00c2\u00a0 He wonders what it&#8217;s going to take.\u00c2\u00a0 I tell him Napster proved that the only way to change the <br \/>infrastructure is to STEAL THE MUSIC!<\/p>\n<p>Make no mistake, if it weren&#8217;t for Napster, there&#8217;d not only be no iTunes <br \/>Music Store, but no iPod.\u00c2\u00a0 That little device that&#8217;s your most treasured <br \/>possession, don&#8217;t forget that the RIAA sued to stop its progenitor, the Diamond Rio.<\/p>\n<p>One man in the music business believed in the future.\u00c2\u00a0 Thomas Middelhoff.\u00c2\u00a0 He <br \/>realized, like Steve Jobs, it wasn&#8217;t about TODAY, but TOMORROW!\u00c2\u00a0 It didn&#8217;t <br \/>matter that the major labels made their money on CDs.\u00c2\u00a0 It didn&#8217;t matter that few <br \/>people had broadband connections in 2000.\u00c2\u00a0 In the near future, people would <br \/>want their music as files, and he sought to deliver this.\u00c2\u00a0 And for this, he and <br \/>Hummer Winblad are being sued.\u00c2\u00a0 And that&#8217;s totally fucked up.<\/p>\n<p>The fact that the RIAA has convinced ignorant copyright holders that P2P is <br \/>stealing that must be stopped does not make their pronouncement true.\u00c2\u00a0 You MUST <br \/>trade P2P.\u00c2\u00a0 You MUST protest the heinous behavior of the major label cartel.\u00c2\u00a0 <br \/>You MUST drag the business into the future, because otherwise the cartel is <br \/>going to keep it in the past.<\/p>\n<p>If they don&#8217;t win in the Supreme Court, they&#8217;re going to lobby Congress for <br \/>legislation.\u00c2\u00a0 They&#8217;re going to do all in their power to keep music from the <br \/>public.\u00c2\u00a0 Yes, P2P allows cheap and easy distribution to the masses.\u00c2\u00a0 Allowing <br \/>more people to own more music at a cheaper aliquot price.\u00c2\u00a0 What&#8217;s wrong with <br \/>this?\u00c2\u00a0 NOTHING!\u00c2\u00a0 It&#8217;s just not the paradigm the labels have employed previously.\u00c2\u00a0 <br \/>They&#8217;ll make MORE money if they license P2P, but they&#8217;re afraid.\u00c2\u00a0 As afraid as <br \/>the independent promotion men whose business is threatened by shrinking label <br \/>budgets and Elliott Spitzer.<\/p>\n<p>I don&#8217;t really give a rat&#8217;s ass whether the major labels survive.\u00c2\u00a0 But I DO <br \/>care about spreading the life-fulfilling greatness of music to as many people <br \/>as possible.\u00c2\u00a0 Economies of scale, provided by the Web, allow this.\u00c2\u00a0 It&#8217;s <br \/>happening.\u00c2\u00a0 P2P is burgeoning.\u00c2\u00a0 The major label cartel just refuses to monetize it.\u00c2\u00a0 <br \/>But what worries me is they might institute penalties, restrictions in <br \/>hardware, that will prevent the future from arriving.\u00c2\u00a0 To the detriment of EVERYBODY!<\/p>\n<p>Steve Jobs is throwing the long ball.\u00c2\u00a0 He sees that in a couple of years if <br \/>Apple continues to rely on IBM it&#8217;s fucked.\u00c2\u00a0 For Apple is a relatively small <br \/>customer for Power PC chips.\u00c2\u00a0 And, IBM can&#8217;t deliver what they need, at the <br \/>price they need it.\u00c2\u00a0 The G4 laptops are getting long in the tooth, Apple can still <br \/>sell them today, but in two years or so, sales will fall off a cliff, when <br \/>Intel processor-based machines run performance circles around them.\u00c2\u00a0 There&#8217;s no <br \/>upgrade path, because IBM&#8217;s Power PC G5 chip runs too hot, and consumes too <br \/>much power.\u00c2\u00a0 SEEING the future, Steve has decided to make a change now.\u00c2\u00a0 Will it <br \/>be successful?\u00c2\u00a0 Maybe not.\u00c2\u00a0 But, the other route is slow death, by shrinkage <br \/>of market share if nothing else.<\/p>\n<p>But you don&#8217;t take such an action willy-nilly.\u00c2\u00a0 You PREPARE!\u00c2\u00a0 Apple&#8217;s got a <br \/>HUGE cash hoard, BILLIONS of dollars.\u00c2\u00a0 This is their buffer, their CUSHION <br \/>against doing that which is expedient in order to survive.\u00c2\u00a0 Warner Music used to <br \/>have essentially no debt, now Thomas H. Lee has laden it with debt so huge the <br \/>company can barely function.\u00c2\u00a0 THIS is the way you prepare for the future??\u00c2\u00a0 <br \/>And Edgar Bronfman, Jr. speaks of new technological opportunities, but I don&#8217;t <br \/>see him embracing any.\u00c2\u00a0 Andy Lack keeps focusing on the disc, which is like Mr. <br \/>Jobs believing in IBM, which has failed to deliver the 3 gigahertz chips it <br \/>promised.\u00c2\u00a0 EMI is overselling Coldplay and the Gorillaz, just to prop up its <br \/>stock price.\u00c2\u00a0 Think different my ass.\u00c2\u00a0 Universal is behind SUING customers <br \/>whereas Apple is all about delivering that which the mainstream customer can&#8217;t even CONCEIVE of yet.\u00c2\u00a0 Like built-in RSS in Safari, and podcasting in iTunes.<\/p>\n<p>The major labels are bullies.\u00c2\u00a0 Not much different from Morris Levy and the <br \/>record men of yore.\u00c2\u00a0 For a business where almost all of the product is produced <br \/>on computers, the executives in control are technologically backward.\u00c2\u00a0 If <br \/>these companies truly believed in music, they would embrace the future, try new <br \/>models before the mainstream marketplace was even ready for them.\u00c2\u00a0 Dazzle <br \/>consumers to the point where they got EXCITED about music.\u00c2\u00a0 But all they can do is <br \/>come up with lame non-singers like Ashlee Simpson.<\/p>\n<p>Steve Jobs realized that it&#8217;s not about quantity, it&#8217;s not about lowest <br \/>common denominator, it&#8217;s about selling no art before its time and having it be so <br \/>good that the public CLAMORS to consume it.\u00c2\u00a0 Can you say &quot;Finding Nemo&quot;?\u00c2\u00a0 And <br \/>&quot;The Incredibles&quot;?<\/p>\n<p>Steve Jobs can be a mercurial prick.\u00c2\u00a0 But it&#8217;s not in service of his ego, but <br \/>the creation of insanely great products.\u00c2\u00a0 If only record execs could say the <br \/>same.<\/p>\n<p>If the above doesn&#8217;t make sense to you, then you&#8217;re just out of the loop.\u00c2\u00a0 <br \/>You&#8217;ve drunk the major label kool-aid, unlike what George Harrison said, you <br \/>can&#8217;t think for yourself.\u00c2\u00a0 Please don&#8217;t make any pronouncements, don&#8217;t line up <br \/>and yell until you know about the new technological world.\u00c2\u00a0 Otherwise, you&#8217;re <br \/>just demonstrating your ignorance.<\/p>\n<p>People aren&#8217;t stealing the music.\u00c2\u00a0 They&#8217;re just demonstrating a better way to <br \/>consume it.\u00c2\u00a0 If you can&#8217;t wrap your head around this concept it&#8217;s only <br \/>because your noggin is too far up your ass. <\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>It&#8217;s about tomorrow. Could Apple Computer be any hotter?\u00c2\u00a0 Shouldn&#8217;t it scale down development and return value to its shareholders?\u00c2\u00a0 Isn&#8217;t that the goal of a corporation, to deliver for shareholders TODAY? No, the goal of a corporation is to deliver value for shareholders LONG TERM! Dick Parsons didn&#8217;t believe in the music business.\u00c2\u00a0 Bertelsmann [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,2],"tags":[],"class_list":["post-43","post","type-post","status-publish","format-standard","hentry","category-apple","category-music-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p96vPs-H","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/43","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/comments?post=43"}],"version-history":[{"count":0,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/43\/revisions"}],"wp:attachment":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/categories?post=43"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/tags?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}