Apple's Music Man: Steve Jobs Explains Why It's Better to Own Your Tunes

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Apple's charismatic CEO sat down with NEWSWEEK's Steven Levy--after introducing the Windows version of iTunes and the upgraded iTunes Music Store last week--to discuss the world of digital music.

LEVY: You say that that the online music retail competition will boil down to Apple and Microsoft.

JOBS: Eventually. [But] we're trying to be nice to the Windows world. We turned out one of the best products on Windows that's ever been made. So maybe Microsoft will decide not to [sell music online]. They don't compete with eBay, they don't compete with Amazon, they don't compete with a lot of people. Maybe if we're lucky Apple can be the Amazon or eBay of downloaded music.

You've now got competition in online music stores, and more is coming.

We made this look really easy. But it ain't really easy. Under the hood this is really tough stuff. Some other people have tried, and the results are a little less than you'd like.

With Windows and Pepsi, you're aiming toward a mass market in downloading. But the iPod is premium-priced.

It's the No. 1 player in the world.

Still, $300 to $500 is an obstacle to a lot of people.

No, of course I don't think it's too costly. Fifty million homes have DVD players that cost that kind of money. …