The online columnist Robert X Cringely has had a
few columns recently where he has analyzed Apple's iPod, iTunes and related products and, contrary to most analysts, stated that Apple is in the razor selling business as opposed to the razor-blade one. In other words Apple looks at iTunes (and its successors) as ways to sell more apple boxes rather than looking at the boxes as ways to more consumable content.
I was somewhat sceptical of this analysis but evidence to support it emerged yesterday when it was reported that the well known hacker "DVD-Jon" Johansen had produced software to add Apple's Fairplay DRM to arbitrary content. According to Jon and his fellow entrepreneur at DoubleTwist Ventures, Steve Jobs seems to be willing to turn a blind eye to their efforts:
Johansen and Farantzos went down to Cupertino for an audience with King Jobs, but weren’t terribly specific about their new company’s plans (to be fair, at this point, they didn’t quite know what their plans were). Jobs apparently warned that while Apple was not a litigious company, other tech firms might not take kindly to whatever DVD Jon might be up to. Ha!
Johansen doesn’t think what he’s doing is illegal; he’s adding DRM rather than breaking it. He and Farantzos were giddy about the prospect of Apple’s iTV, hoping companies will pay up to get movies on the set-top box when it comes out, after seeing the ill effects of being shut off the iPod. Spurned by Apple? Step right up.
If Apple's business model is selling iPods not pushing iTunes then DVD Jon will be receiving the tacit blessing of Jobs and be left to prosper. If it's the other way around then he may discover just how non-litigious Aplle really is.
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