This story has been splashed all over the music press today, and I'm assuming that there's either more or less to it. But Apple is not clueless enough to pursue it as reported.
Basically, the story is that the labels and Apple are concocting a "cocktail" to entice iTunes customers back into full album purchases by creating a digital experience that recreates or adds to the traditional experience of pouring over an album's liner notes. Somehow this story has been lumped together with reports of Apple's upcoming tablet PC, which is reported to be a larger scale iPhone-style tablet computer.
So let's see if I have this straight: the labels have pinned their hopes on reviving album sales by electronically "enhancing" liner notes? So the reason all those kids only download singles is they just miss the "interative" experience they have with physical CD's and albums? Really?
Now, I'm a big nerd, and I guess the possibilities these digital "enhancements" sounds pretty cool. But I doubt most of the music I listen to will really get very enhanced, and since I'm still reasonably attached to the physical format, I just instead buy, ya know, the actual CD (vinyl sometimes). Often for the same price as digital. But again - I AM A BIG NERD.
See, the problem is that most consumers just don't want the whole album. Nor do they want to spend more time with the ones they have. Taking an hour out of your day to listen to an entire album is a time commitment, time the listener might otherwise spend watching TV, playing video games, watching movies or surfing the web (or spending time with their family, or whatever). I grew up getting ripped off by shitty albums with one good single, and iTunes finally killed that cash cow. Finally, the distribution mechanism fulfills the needs of many listeners. It's not that they're not getting what they want -- they are getting exactly what they want.
There are more music choices out there than ever before, available in a variety of formats. It seems to me that, thanks to the internet, the listening experience is more multi-dimensional than ever before. I suppose packaging that experience into a slick interface might be cool, but it won't save the major labels.