Given the instrumental role that the Apple CEO Steve Jobs has played in shaping the digital entertainment industry, his six month departure from Apple may pose both significant advantages and disadvantages for Hollywood.
Reuters regards him as being a powerful advocate of change in the overall distribution of media, in the face of losing ground to free online content. Jobs has been able to leverage the immense success of the iTunes store to keep a tight lid on the price of digital music, TV, and movies.
Some believe that with Jobs temporarily out of the picture, studio negotiations with Apple may become easier. An unnamed studio executive had expressed his feelings about this situation saying, “There may be some more room for advantageous deal-making between Apple and studios. Steve’s a control freak and tough negotiator, and Apple will lose a lot of bench strength, which may work to studios’ favor.”
While this type of optimism may hold elements of truth, others tend to believe differently. Many feel that Apple has a top notch team to take over negotiations and can still use the wild popularity of iTunes as a major bargaining chip, even with Jobs sidelined. USC business professor, Julia Plotts, remains under the impression that, “Hollywood’s always been Steve Jobs’ pet interest…He branched out into Hollywood and provided studios with a new mechanism to make money in the era of digital content delivery.” Adding, “I’m not sure what does to Apple’s foresight and ability in terms of negotiating with content providers and navigating Hollywood.”
While certainly no one can take away the cunning business practices that Steve Jobs has been known for, it is precisely these practices that have set up Apple to remain strong even when he is not around. By making iTunes what it is today, Jobs has successfully secured Apple’s vested interest in the digital entertainment industry for years to come. And lest we forget about Disney and Pixar.
8 Comments to “Hollywood’s Crippling Dependency on Steve Jobs”
Jobs changed the world of music and music distribution forever. The other companies probably can’t wait until he’s gone.
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I dont think that Apple’s negotiations with any major entertainment house will just completely fail because Steve is gone. iTunes speaks for itself. *Clout*
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Really Chase. So you’re trying to say that iTunes is the best thing out there right now? Do you think it would be anywhere without Apple’s relentless push in selling the iPod and iPhone?
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It is true that Hollywood’s always been Steve Jobs’ pet interest…It is quite difficult to Understand Apple’s terms of negotiating.
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they just want Jobs gone so the deal talks aren’t so harsh. undoubtedly Jobs makes it harder on the music companies. he knows he runs the distribution channel.
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Why in the fuck does anyone care if Jobs isn’t around to make deals anymore. Apple always gets their way and if not, as the case with the new three-tier pricing, it takes YEARS for anybody to convince Apple to change their minds. By that time music will be beamed into our skulls.
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I don’t think it’s necessary for anybody to worry about iTunes struggling for content once Steve Jobs is gone. I am baffled sometimes by how much people think every facet of Apple’s company relies on one person, that person being Steve Jobs. Even to the point of managing negotiations with Hollywood/Music Studios.
Steve Jobs is not at every meeting. The fundamentals are in play. As mentioned above in the comments, it took the studios a very long time to convince Apple to do three-tiered pricing with their content. iTunes is a fundamentally strong and sound business model. It flipped the industry on its head, and there’s no way to tie all of its success directly to Steve Jobs.
The notion that iTunes would be less of a product, or less of an influential asset if Steve Jobs isn’t around is just silly.
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Aviv, I think you’re missing a crucial element here. Not only does Jobs carry the brand’s name on his shoulders, the mere argument that we’re having, about how demanding he is in negotiations, is what will be lost. He is cut-throat, relentless and as some say “the best entrepreneur in the world,” and I am not sure how anyone could feel comfortable about any part of Apple’s business if Steve were to retire.
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