I think whoever came up with this idea understands the online music industry about as well as a cow understands algebra,

[The music services] have been anxious to [expand to Europe]. It's been the labels dragging their feet. The cloud cover is that there are a lot of different licensing authorities and things are fragmented over there. But when it gets to be important, the labels can get people in line.

[The problems facing Hollywood regarding legitimate downloads are in some ways the same ones the music industry has faced. Unfortunately, the movie industry obviously hasn't learned from the mistakes made by the music business. Rather than launch with an all-you-can-eat offering -- the approach the industry's free competitors are winning with -- Hollywood is moving too cautiously and weighing down the few titles it makes available with too many hooks and time restrictions.] The initial usage rules are pretty restrictive, ... A good reason for downloading a movie is to take it on a business trip. The 24-hour limitation makes that a problem.

[The potential for music phones] is similar to camera phones. People didn't think they needed a camera phone, but once they saw it, they liked it. Music in the phone is the wave of the future, but it will start slowly.

I don't think it's a fad. Those who lived without it think, 'Why do we need it?' But I remember when T-shirts were white. People want to make a statement. And ring tones offer that. I think we'll see growth. You hear complaints from record labels about problems in the digital age, but this is a real net positive.

They're making consumers apprehensive. They're concerned that they're buying something that makes their computer crash. This affects all the labels. The average consumer doesn't know it's just Sony, so they become reluctant to buy CDs.