Speaking at Apple’s music event, CEO Steve Jobs, in his first public appearance since his medical leave of absence, introduces iTunes 9. After noting that iTunes is the largest music store in the world, boasting some 100 million accounts, Jobs rattles off some of the software’s new features. Among them: Genius Mixes and improved synching. The latter enables more specific synching and supports a new way of managing applications for the iPhone and iPod touch with a nice drag-and-drop feature. Very easy to organize and reorganize applications. The crowd really likes this one.

Also included in this update: Home Sharing, which allows songs, movies and TV shows to be shared and copied to up to five home computers. Another very slick feature that allows users to simply drag and drop songs between computers to copy them.

iTunes 9 also features a new store with redesigned music, movie, TV pages and a handy new navigation bar. Beyond this, there’s also support for Twitter and Facebook.

“You know, some of us here are old enough that we actually bought LPs,” says Jobs. “You used to get liner notes, essays and photos, but that stuff left us when we moved to digital music.”

With that, Jobs announces iTunes LP–the official name of the company’s rumored “Cocktail” album bundle. As expected, these iTunes LP bundles will feature additional art, photos and whatnot. Apple is working directly with artists and labels to develop them.

A Doors “LP” is offered up as an example and it includes some videos exclusively recorded for iTunes–Ray Manzarek talking about how Jim Morrison named the Doors (“Not a door-door, man. Like the door in your MIND.”). Surprisingly nice little video, actually. Certainly, it’s likely to appeal to die-hard fans.

Apple (AAPL) is doing something similar with movies–iTunes extras. Movies bundled with additional photos, etc.

Live from Apple’s “Let’s Rock” Event

• iPod Updates, Games, Nano Video Cameras
• iTunes 9, iTunes LP, Home Sharing, Genius Mixes
• Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”
• Event Photos by Adam Tow

According to the FT, the “full-featured” tablet is being prepped to launch alongside a next-generation digital album format Apple (AAPL) is cooking up with the four largest recording companies, one designed to gin up sales of CD-length music.

“Cocktail,” as the project is known, is a new music format that will gather songs, photos, lyrics sheets, video clips and liner notes into a sort of interactive booklet. Said one executive familiar with the effort: “It’s all about re-creating the heyday of the album when you would sit around with your friends looking at the artwork, while you listened to the music.”

…skipping through nine middling-to-lousy songs to reach that one that inspired you to shell out for the album.

Which begs the question: Can that heyday ever be recreated? Now that we’re accustomed to purchasing only the music we want via the thin-margin, 99-cent-song-by-song downloads that iTunes pioneered, can we ever be convinced to pay a premium for bundled music, cluttered up with a bunch of liner notes, wacky band photos and throw away filler songs?

[Image Credit: Apple Insider]

“Imagine your music player talking to you, telling you your song titles, artists and playlist names,” Greg Joswiak, Apple’s vice president of iPod and iPhone Product Marketing said in a statement. “The amazingly small new iPod shuffle takes a revolutionary approach to how you listen to your music by talking to you.”

An interesting feature for those of us that can’t always recall a song name or its author simply by listening to it. Reminds me of HAL in 2001: A Space Odyssey.

“Dave Bowman: Tell me the name of the song, HAL.
HAL: I’m sorry Dave, I’m afraid I can’t do that.
Dave Bowman: What’s the problem?
HAL: I think you know what the problem is just as well as I do….”

As with most Apple (AAPL) products, the design of the device is impressive–sleek and impossibly small. That said, one of its elements may prove off-putting: The new shuffle lacks a click wheel. Its controls have been moved to the earphone cord. Which means it’s incompatible with third-party earphones until someone comes out with an adapter cable that will make it a bit costlier than its $79 price.

• Three new pricing tiers in April: $.99, $.69 and $1.29
• iTunes Plus eight million songs DRM-free today. By the end of this quarter, all songs will be DRM-free in iTunes Plus
• Finally, the iTunes store will be available to iPhone and iPod touch users via Wi-Fi AND 3G networks beginning today.

This is a big step for Apple (AAPL), says Phil Schiller, and a big step for music. And with that, he welcomes Tony Bennett to the stage to close out Apple’s final Macworld. Bennett’s first song: “The Best is Yet to Come,” followed quickly by a second, “I Left My Heart in San Francisco.”

After a few parting words from Schiller, the keynote address ends. No jaw-dropper announcements, no cameo appearance from Jobs, but a good keynote just the same. Schiller did his boss proud, I think.

And 80% would pay for a legal subscription-based music service that would allow them to discover, swap and recommend music.

Which, if true, illustrates the great disparity between the consumer and industry views of digital music. Because according to the Hertfordshire study, consumers–at least those in this particular age group–view digital music on the Internet as a sort of giant mixed tape to be explored and shared. They don’t have much of an emotional connection with it: “Respondents seem to attach a hierarchy of value to different formats of music, with streaming-on-demand the least valuable (though still valued); ownership of digital files somewhere in the middle; and ownership of the original physical CD the most valuable.”

The recording industry, of course, has failed to recognize that hierarchy. When, and if, it does, the study notes, it may finally succeed in monetizing that mixed-tape ethos that’s befuddled it for so long. “Survey responses suggest that respondents would continue to purchase CDs and go to gigs, even if they subscribed to a legitimate peer-to-peer file-sharing service,” the survey adds. “Fans want to support or pay tribute to their favorite artists and ownership of a digital music file does not necessarily do justice to their sense of devotion.”