This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Steve Jobs Was an Idiot

NEW YORK (TheStreet) -- I love Steve Jobs as much as the next person -- my lengthy article history at TheStreet confirms this. But, I've grown so weary over the last few days that I have no problem going all anti-Steve Jobs on you just to prove a point.

In response to the Apple (AAPL - Get Report)/Beats deal, run-of-the-mill scribes to passport-toting Apple haters continue to pull this Jobs' quote from the archives:

People don't want to buy their music as a subscription. They bought 45s, then they bought LPs, they bought cassettes, they bought 8-tracks, then they bought CDs. They're going to want to buy downloads.

From there we get this type of nuance- and context-lacking analysis from writers:

... so far streaming music has had a difficult time gaining a mainstream audience in the U.S.

No need for a link. We've seen that Jobs' quote and the standard reaction to it many times, particularly this week.

Must Read: 3 Industries the Millennial Generation Is Mauling

First, a lot has changed since Steve Jobs died. And who knows if he was even being forthright when he was alive and saying these things.

Second, in the rush to canonize Jobs (again) we fail to acknowledge that he was wrong! Insofar as "they're going to want to buy downloads" he was right, however he absolutely did not see the future beyond downloads.

You should read the article I wrote last month -- Is Steve Jobs Rolling In His Grave Or Did he Dig One For Apple's iTunes? I wrote it in response to a report that Apple was so concerned with iTunes Radio's slow start that it was considering alternatives, including starting its own on-demand subscription-based streaming service. Here's a key excerpt:

Steve Jobs was alive when Pandora (P) took off. In fact, Pandora exploded ...
Jobs was witness to (Pandora's iPhone-facilitated success). And you mean to tell me he didn't have sight lines somewhere over the next several years to start extricating Apple from the music download business and move it toward a streaming model.
So we can't put this all on Cook. Jobs deserves a considerable portion, if not all of the blame. Maybe Jobs was perfectly happy relying on third party apps to provide the iOS music experience outside of the iTunes Store and your iTunes collection. Maybe he never would have done iTunes Radio. Maybe he didn't see the need for it. We'll likely never achieve certainty with respect to any of this.
But here's what we do know -- Apple did not anticipate the death of the iTunes Steve Jobs built. And now it's almost as far behind the curve as the music industry. And it's displaying an uncharacteristic patheticism as it flails ineptly trying to not merely keep up, but save a business model that simply cannot be saved. We're not buying music anymore. We're buying apps, but we're not buying music. And there's nothing Apple can do to change this.

So Jobs and Apple visioned people buying downloads, but they didn't vision people moving away from downloads to streaming. Apple came way late to streaming, copying Pandora several years after Pandora established itself as Internet radio's clear leader. That's absolutely on Steve Jobs.

Spin forward to the often-regurgitated notion that "so far streaming music has had a difficult time gaining a mainstream audience in the U.S." Let's put some nuance and context around that statement ...

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs