A fixture in the music industry since the mid-1990s, Bronfman led WMG during a period of profound tumult, navigating a rough transition from CD to the digital download, and grappling with a generation of younger consumers who don’t always want pay for digital music.

Onstage at D: Dive Into Media this afternoon, Bronfman reflected on the evolution of the music industry, Apple, and the fate of EMI, which is currently being pursued by Universal Music.

“It strikes me as hubris that Universal will buy EMI,” Bronfman told Peter Kafka of AllThingsD. “What it will do is create a super-major that will have far too much power. … I think when Universal goes up over 40 percent market share, I don’t see how reasonable regulators can countenance. It will impact not just labels, but artists and cultural diversity. … Warner is going to fight this tooth and nail, and I hope others will join us.”

As with today’s Neil Young session, the perceived obsolescence of the recording industry was a topic of conversation and, as you might imagine, Bronfman feels labels remain a necessity.

“Commercial success still hasn’t come to an artist that isn’t signed to a record label, he said. “There are very few artists that can succeed without the help of a record label. The role of the record label is still required, it’s still necessary.”

And not just for musicians. Consumers need labels, as well.

“I really do think consumers are busy, and trying to sort through millions and millions of artists to find the ones that they might like just requires far too much work. That’s where the labels come in.”

A few other remarks worth noting …

On mobile:
Mobile is coming. It’s still not really there. It’s on the iPhone because Apple has a content strategy, but it’s not really there on other devices. … I think the mobile platform is a massive opportunity for music. … Think about it. The iPod made music mobile, but today, how many devices do you need to walk around with? You want it on just one. And inevitably that’s going to be the phone.

On Google Music:
Google Music is an oxymoron.

On unbundling:
Any time you can give consumers more of what they want, it’s a good thing. Unbundling the album is a good thing. In the case of music — because it is content that you can slice into songs — doing that is of huge benefit to consumers.

On Apple and iTunes:
Apple from day one believed in music and content. That was the good news. The bad news is that they decided all songs where created equal, and I fought Steve on that. Ultimately, Apple got the better part of that deal. Ultimately, I wish we’d gotten more pricing flexibility.

On Spotify:
We see Spotify as incrementally positive. It’s not slowing down music sales or downloads. We would all love to make more money from Spotify, but Spotify needs to make money, too. But artists should know that it is a real and growing revenue stream.

To recap: Lots of people you know, and lots of people who read sites like this one, think people are already ditching cable TV for some combination of iTunes/Netflix/Hulu and/or pirate sites, etc. But cable providers and cable networks say they don’t see any signs of it.

So onward to today’s numbers from Time Warner Cable, which show the second-biggest cable company in the U.S. losing 129,000 video subscribers — about 1 percent of the 11.9 million base.

If you’re in the “it is totally for real” camp, you can jump on this as proof of your thesis, and that’s what this Business Insider post* does, Grim Reaper art and all.

But in order to get really worked up about Time Warner’s losses, you’d have to ignore contrary data points from other video services that show a boost.

For instance, AT&T and Verizon each added about 200,000 subscribers to their pay-TV offerings in the last quarter. Presumably, many of those 400,000 subscribers were already paying for TV from another provider, so those losses have to show up somewhere.

Time Warner Cable notes that AT&T’s service is available in about 25 percent of Time Warner’s footprint, while Verizon, which it says was “aggressive” about marketing last quarter, is available in about 12 percent of Time Warner’s market.

In any case, until we get numbers from all of the pay TV providers, it’s hard to make any calls about cutting/adding in the last quarter. Comcast, the industry’s biggest provider, won’t report until February 15.

And once we do have all of this quarter’s data, we’re still just going to have this quarter’s data. As we’ve seen over the last year or so, sometimes pay TV user numbers go up, and sometimes they go down. We’ve yet to see a clear trend one way or another.

None of this will soothe some of you folks, who will tell me that you, or your friends, or someone you know has cut the cord and is loving life. That doesn’t mean that’s not the case — just that statistically, it has yet to register.

Earlier this month I tried to make an analogy between cord-cutters and vegans, but I’m not sure I hit the mark. So this time we’ll let Time Warner Cable CEO Glenn Britt make a similar argument, in his own words, via Seeking Alpha:

I think there are — remember, the average TV in America is on for some very large number of hours a day, with 6, 7, 8 hours a day, whatever the latest number is. And this activity you’re talking about is kind of sporadic, watching no specific programs. So most people watch a lot of TV and they like these packages of linear networks. And the services we’re talking about are not, at this point, a substitute for that. Having said that, there are people who don’t watch TV very much and they’re quite satisfied with just being able to watch a few shows now and then. And we all know one of those people and I think that affects our perception of what’s really going on in terms of the mass market.

*Per my disclosure, I not only like the guys over at Business Insider, but I have a vested interest in their success.

In light of this month’s SOPA/PIPA debate, for instance, it ought to be very interesting to compare and contrast what Viacom CEO Philippe Dauman and YouTube head Salar Kamangar have to say about copyright and piracy. (Not that they were on the same page to begin with.)

But in addition to executives who help distribute media for a living, we also wanted to make sure we heard from content makers at Dive. We’ll have several, but none more famous than Neil Young.

One of the nice things about having a music icon join you onstage is that you don’t need to spend much time introducing him (though it’s easy enough to get the official and unofficial takes; and, courtesy of Kamangar’s YouTube, plenty of audiovisual reminders, which you can see at the bottom of this post).

That’s going to give us more time to have a freewheeling conversation: The man has a 40-plus-year career and is still making music and movies today, so there’s a lot of ground to cover. One digital topic I imagine we’ll certainly touch on: His long-running campaign to fix the way modern music sounds – not the songs themselves, but the way they’re recorded and distributed.

That isn’t the easiest sell, when lots of people seem content to listen to super-compressed iTunes files bleeding out of tiny, tinny, laptop speakers. But perhaps things are changing a bit: Dr. Dre and company sure have sold a lot of sort-of high-end Beats headphones in recent years.

Dive kicks off on the evening of Jan. 30, and we’ll have complete coverage here. If you want to join us in person in Laguna Niguel, Calif., grab a seat.

But just barely: Digital sales accounted for 50.3 percent of all U.S. music purchases last year, according to Nielsen SoundScan.

And if you want to caveat that number, that’s easy to do: For starters, the Nielsen number refers to unit sales, not revenue. So the music company’s books might still show that analog sales make more money for them. And recall stunts like Amazon’s Lady Gaga almost-giveaway last spring, when it sold nearly half a million albums at 99 cents a pop.

Still, the big picture finally resembles the one we’ve been hearing about since Napster showed up in 1999, or at least since Apple started selling music via iTunes in 2003: One day, files would beat discs.

The milestone happens to have occurred in the same year that music sales finally ticked up again. You can pick a couple different metrics to illustrate the rise, but they’re all single-digit increases. The important point is they’re not decreases.

That could simply be a one-off, and perhaps the result of lots of people buying Adele songs — Sony’s new star sold more albums than anyone has done since 2004 — or there could be a larger change afoot. Won’t know about that for a while.

But an industry that hasn’t had good news since the Backstreet Boys were big can afford to be patient.

If you’re in the big-deal camp, then you’ll like a new survey from Deloitte, which finds that a staggering one in five U.S. residents say they have either cut the cord or are thinking about doing it. The breakdown: Nine percent of survey respondents say they’ve recently cut the cord and are getting their shows from Netflix, Hulu, iTunes, etc. And another 11 percent say they might do it. (Click image to enlarge.)

To repeat: The Deloitte survey is asking people about cutting pay TV — Comcast, Verizon, Dish, etc. Not cutting back on certain channels like HBO (that would be cord-shaving) or simply never signing up in the first place (that would be the “cord-nevers” we’ve started to hear about).

How can that possibly square with the pay-TV industry’s reported results, which show that overall subscription levels remained basically flat last year? Even if you allow for a significant margin of error, things don’t add up: If the pay-TV business had lost a single percentage point of its customers in the last year, it would be a huge deal.

But Deloitte is reporting that approximately nine million people say they’ve recently stopped paying for TV. That’s the entire population of New York, plus another million or so, vanished. Can’t be.

I’ve asked Deloitte if they’ve got any insight on the gap, but haven’t heard back. But my hunch is that — for now, at least — cord-cutters are like vegans: They’re real, and they’re out there. They’re particularly notable in certain places like New York, the Bay Area and college towns. And they over-index at certain Web gathering places, like this one. But McDonald’s sales are still chugging along.

According to Experian Hitwise, the top search query the week before Christmas that included some variation of the term “gift card” was for “kindle gift card.” Apple’s iTunes gift card was not even close, ranking as the eighth most searched-for term. In between were several more generic combinations, including American Express or Visa, or terms like “cheap gift cards.”

This holiday season, spending on gift cards was expected to hit $27.8 billion, a four-year high, according to a survey conducted by the National Retail Federation.

The plastic versions of cash were the most requested items on people’s wish lists for the fifth year in a row. What was unusual was the increased number of shoppers who were willing to give them, shedding concerns about looking impersonal or lazy.

The average shopper was expected to spend $155.43 on gift cards, the highest amount since 2007.

Experian theorized that the Kindle gift card, in particular, was searched for so heavily because it made a practical companion gift to the record number of e-readers being purchased. It also said that the increase in gift card purchases drove higher traffic to retailers’ Web sites on Christmas Day, with visits up 31 percent year over year.

But what if you got a gift card you don’t want, or one for a restaurant or theater that doesn’t exist in your hometown?

There’s a secondary market for that.

Companies such as PlasticJungle.com, GiftCardRescue.com and CardPool.com will give you up to 90 percent of the voucher’s value — depending on the demand for the card. Likewise, you can also purchase gift cards for below face value on these sites.

Even better, if you didn’t get a Kindle gift card but wanted one, PlasticJungle and GiftCardRescue both have partnerships with Amazon that will give you an extra 5 percent on the value of the unwanted card if you swap it for an Amazon gift card instead of cash.

Whatever you do, experts suggest you don’t put the cards in a drawer and forget about them. The best deals are being offered now, so spend them.

Which app do you recommend for using on the iPad 2 for opening Microsoft Office files (Word, Excel, PowerPoint?)

A:

If you literally just want to open the documents to read them, you don’t need any apps. The iPad comes with built-in viewers for Microsoft Office files. However, for opening, storing and editing the files, I like two products. One is called Quickoffice Pro HD, which costs $20 and handles all three types of files you cite, and more. The other is the tablet version of Apple’s iWork suite, which is sold as three separate apps for $10 each—Pages for word processing, Numbers for spreadsheets and Keynote for presentations.

This also would be a good place to note that there are reports, unconfirmed by the company, that Microsoft is considering releasing an iPad version of Office itself. I have no evidence this will happen.

Q:

Do any of your recommended Ultrabooks run Office?

A:

All Ultrabooks run Microsoft Office. While Ultrabooks are thin and light, they are full-blown Windows laptops running the latest Intel processors, and in my tests, they ran Office very well, just as well as many heavier, thicker laptops I’ve reviewed.

Q:

My son was told by an Apple phone representative that the iCloud service cannot handle our full iTunes library of 6,000 songs, and it will only sync with your hand-held, wireless devices.

A:

That’s inaccurate. ITunes Match handles 25,000 songs and syncs with Macs, PCs (if they’re running iTunes), the iPhone, iPad and iPod touch.

Walt is on vacation and his Personal Technology column will return Jan. 5. Email him at mossberg@wsj.com.

And perhaps it has. After the feature launched in October, there were a flurry of press releases and reports about increases in downloads and activity, though every report I saw listed percentage increases, not actual numbers.

But here are some, from Bonnier’s Popular Science mag app, in convenient chart form. The jump you see in the second week of October corresponds with the launch of Newsstand:

The chart comes to us courtesy of Mag+, Bonnier’s tablet-publishing software business. And as Mag+ CEO Staffan Ekholm points out, the really promising indicator for Pop Sci isn’t the one-week sales leap of 13 percent — it’s that the the magazine’s growth picked up after that week, with more velocity.

It’s very easy to caveat this report  – the most obvious thing to point out is that Pop Sci is a title that resonates particularly well with the iTunes market. But it’s still nice to see actual sales data, no matter how anecdotal.

The next thing I’d love to see, though I’m not sure how easy it will be to suss out, is how often readers return to Newsstand apps. In my personal experience, I find that I end up visiting the New York Times’ app much less frequently now that it’s stored in the Newsstand. I wish I could pull it out on its own, so it could sit next to stuff I use all the time, like Instapaper and Twitter. If anyone wants to offer up usage stats, you’ve got an open platform here.

They’re less happy than they used to be. But they don’t seem to be going anywhere.

That’s the cautiously optimistic conclusion of a new survey Citigroup commissioned over the past few months. It finds existing subscribers still fairly pleased with the service Reed Hastings is offering: 57 percent say they’re either “extremely satisfied” or “very satisfied.” But Hastings’ good will has certainly eroded a bit: In May, a similar survey found 50 percent of his customers in the “extremely satisfied” category. That number is now down to 18 percent.

As Citi analyst Mark Mahaney points out, the survey is a bit skewed, since Netflix subscribers who were most disappointed with the service’s changes — a price hike, an ill-fated attempt to spin off its DVD business into a separate unit, and the loss of programming deal that gives the company access to Sony and Disney movies — have already bailed.

But a different survey question suggests one reason customers are sticking around with Netflix: They don’t see many other options.

While Amazon has been building up its catalog of streaming video, only 9 percent of Netflix customers said they’ve watched movies or TV shows there. And while 15 percent said they’ve used Hulu, that number is down from 19 percent in May. Apple’s iTunes comes in at 8 percent. (Perhaps the reason only 27 percent of Netflix subscribers say they use Netflix is because they’re distinguishing between apps and the site. But that seems like a fairly precise distinction for a large number of people to make, so who knows.)

The very big picture is that Mahaney still assumes Netflix will keep growing. He figures its DVD-only subscribers will drop by 800,000, to 9.9 million, over the next year. But he thinks streaming subscribers will increase 9.9 million, to 30.9 million, and that the company will add a few million more as it expands in Latin America and the U.K. He also thinks Netflix will become profitable again by the end of 2012.

But none of that is going to help anyone who bought Netflix stock earlier this year, when shares had climbed as high as $300. Mahaney has lowered his price target for NFLX, and is now hoping it climbs back to $80.

If I upload my music collection to Apple’s iTunes Match cloud service, is it deleted from my computer? I ask because I wouldn’t want to lose my music if the service was killed or suffered some massive failure.

A:

No. Any songs that currently are stored on your computer’s hard disk remain there, so even if iTunes Match is discontinued, your music is safe. However, you will gain access from the cloud to additional songs that live on other computers or Apple devices you own, but now are also stored in your iTunes Match account.

Q:

I am considering buying the 10″ Toshiba Thrive tablet you reviewed a while back. It comes in three memory configurations. Other than the amount of internal memory, do the three models have the same internal hardware?

A:

Yes. A glance at the Thrive website suggests that all other key components, such as the screen, the processor, the ports, the sensors and the cameras are the same. For more, see http://bit.ly/vvy2rM.

Q:

I just got an iPad 3G with Verizon. I want an all-in-one printer, but it seems I need a Wi-Fi connection to use a printer. Is something available that would work with my Verizon connection?

A:

There are some iPad apps that claim to print over 3G. Just go to the app store, search on “print,” and study the descriptions.

But it doesn’t matter, because every iPad, including those like yours that come with 3G, also includes Wi-Fi, and can print to compatible printers. The Verizon 3G is an added, alternate connection capability—not a replacement for Wi-Fi. Just make sure when you buy your printer that it’s compatible with Apple’s AirPrint technology. More information is at http://bit.ly/r2A5VG.

A new start-up, Openspace, is launching a physical store where consumers can visit and discover the latest mobile applications.

“If your iPhone has a problem, you take it to Apple. If your Android tablet has a problem, you take it to Verizon, AT&T or Best Buy,” said Openspace founder Robert Reich. “But if you have a question about which camera app would be great for taking pictures this weekend on the slopes, where can you turn?”

To help solve that problem, Openspace opened its first physical storefront last week in Boulder, Colo. Open six days a week, the store is staffed by “App Gurus” who make recommendations and try to eliminate “app-rehension.” (Their joke, not mine.)

Previously, Reich founded Boulder-based OneRiot, which uses social data to make mobile advertising more targeted. The company was acquired by Wal-Mart in September.

Openspace is just getting off the ground, so all the details haven’t been nailed down — like how the operation will make money. But in the next year it hopes to partner with developers to take a percentage of sales that result from applications promoted in the store.

Consumers can also do things the old-fashioned way and visit the company’s Web site to get recommendations. On the site, the company categorizes applications by interests — many of which won’t be found on iTunes — including such nontraditional subjects as Occupy Wall Street, zombies or “games a 10-year-old girl will enjoy.”

Developers often complain about how difficult it is for their applications to be discovered, and frequently pay for advertising or third-party promotion. So it’s possible that a physical app store could be one more way to get the word out.

Whether Openspace will be able to make enough money off referrals to offset the high costs of real estate and full-time staff will be the bigger question.

Yet here comes one more, via Rara.com. The U.K.-based company launches in 18 countries today, selling a streaming music service to an audience that either hasn’t heard of streaming music services or is baffled by the existing ones.

The basics: Rara is run by Rob Lewis, the founder of Omnifone, which powers music services for the likes of Sony and Research In Motion — as well as Rara. For $5 a month, users get unlimited, ad-free streaming music delivered via the Web; for $10, users get to take their music on the go, via an Android app (an Apple app is coming, Lewis says).

In other words, it’s exactly the same model offered by the likes of Rhapsody, and very similar to the one offered by Spotify. Except Spotify offers a free, ad-supported service as well.

So why bother launching another competitor? Lewis argues that:

• Existing music services are more complicated than they should be.
• Most people don’t use the legal music services that are out there.

True on both counts. Figuring out how to sync music across devices, or how to cache songs on your phone, can be difficult even for people who pay attention to this stuff for a living (cough).

And there are perhaps five million people worldwide paying a monthly fee for music. Which is many more than there were a few years ago, but a tiny number in the grand scheme of music listeners.

And, so … what? Lewis argues that Rara offers an incredibly easy interface, with plenty of preprogrammed stations for people who like music but don’t want to work for it. I haven’t used it myself, so I can’t argue with him on those counts. But I’m not sure about the notion that there are lots of people who would pay for streaming music, but don’t because it’s too complicated. I figure most people don’t pay for streaming music because they’re satisfied with the free options they have.

In any case, we get to find out now. Rara is launching with an assist from Hewlett-Packard, which is embedding links to the service on some of its PCs. It’s also offering a three-month trial for 99 cents a month.

Loosely modeled on the iTunes App store for the iPhone, iPad and iPod touch, Apple created the store last year as a reliable place to get Mac software. It follows the same 70-30 revenue split, where software makers share 30 percent of their sale with Apple, unless the app is free.

Unlike the iOS App store, the Mac App store isn’t the only place to get Mac software. You can still find good Mac software from sites like MacUpdate.com which has been a go-to for Mac fans for years; it is still buzzing along, referring users to software and generating 100,000 downloads a day.

Still, the Mac App store is now the biggest online software store in the world.

Apple’s statement is below:

CUPERTINO, Calif.–(BUSINESS WIRE)– Apple today announced that over 100 million apps have been downloaded from the Mac App Store™ in less than one year. With thousands of free and paid apps, the Mac App Store brings the App Store experience to the Mac so you can find great new apps, buy them using your iTunes account, and download and install them in just one step. Apple revolutionized the app industry with the App Store, which now has more than 500,000 apps and where customers have downloaded more than 18 billion apps and continue to download more than 1 billion apps per month.

“In just three years the App Store changed how people get mobile apps, and now the Mac App Store is changing the traditional PC software industry,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “With more than 100 million downloads in less than a year, the Mac App Store is the largest and fastest growing PC software store in the world.”

“With Autodesk products in both the App Store and Mac App Store, we can reach hundreds of millions of Apple users around the world,” said Amar Hanspal, senior vice president of Platform Solutions and Emerging Business at Autodesk. “With our free AutoCAD WS and the more powerful professional drafting tools of AutoCAD LT, we’re using the Mac App Store to deliver new products and reach a growing base of new Mac customers.”

“The Mac App Store has unparalleled reach and has completely transformed our distribution and development cycle,” said Saulius Dailide of the Pixelmator Team. “Offering Pixelmator 2.0 exclusively on the Mac App Store allows us to streamline updates to our image editing software and stay ahead of the competition.”

“In less than one year we’ve shifted the distribution of djay for Mac exclusively to the Mac App Store,” said Karim Morsy, CEO of algoriddim. “With just a few clicks, djay for Mac is available to customers in 123 countries worldwide. We could never have that reach through traditional channels.”

The Mac App Store offers thousands of apps in Education, Games, Graphics & Design, Lifestyle, Productivity, Utilities and other categories. Users can browse new and noteworthy apps, find out what’s hot, see staff favorites, search categories and look up top charts for paid and free apps, as well as user ratings and reviews. The Mac App Store is included with Mac OS X Lion and is available as a software update for any Mac running Mac OS X Snow Leopard. For more information visit, www.apple.com/mac/app-store.

Mac developers set the prices for their apps, keep 70 percent of the sales revenue, are not charged for free apps and do not have to pay hosting, marketing or credit card fees. To find out more about developing for the Mac App Store visit, developer.apple.com/programs/mac.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.

I bought it Saturday night, watched it on the plane Sunday, and laughed out loud, a bunch. You should do it, and there’s a good chance you have — techland loved this story this weekend. Also, again: It’s very funny.

But What Does It All Mean? Not a ton. It’s an evolutionary step, relevant to a select group of people who make entertainment. With one interesting twist.

The part that isn’t new here is Louis C.K. using the Web and doing it on his own. We’ve seen a bunch of that over the years, mostly from entertainers who have already become famous (or at least semi-famous) with the help of mainstream media. Prince and Radiohead sold their own music only after they sold lots of songs for big music labels. Adam Carolla leapt/got pushed from TV and radio gigs into podcasting.

The new twist here is the way his experiment changes video “windows” — which determine when shows and movies show up on different outlets. By going direct-to-fan first, C.K. doesn’t shut off his chance to end up working the Big Media Companies he says he doesn’t want to work with. He’s just making them wait. So the people who really love him can get it right away, and he can capture almost all of that value in the transaction.

We’ll call it the Louis C.K. Window.

It can run for a week, or a month, or however long he’d like to be the sole outlet for his show. But then, if he wants to get more money for his product and reach a different audience, C.K. can sell the program to HBO or Showtime or Netflix for a “pay-TV window.” And then, eventually, to the likes of Comedy Central or FX. At some point, he can retail discs and downloads via Amazon and iTunes, etc.

The Louis C.K. Window is the most gratifying, because it’s cool, and because he’ll keep almost every penny his fans spend to see him. But it’s also likely to expose him to the smallest number of people.

Let’s say, for argument’s sake, that a million people pony up for the concert — basically, that is, everyone who watches his (great) show on News Corp.’s FX channel. (News Corp. owns this site, too.)

That’s a wildly optimistic estimate, and it will still be a fraction of the people that HBO, which has some 28 million subscribers, can reach. You can fault Big Media for a lot of things, but it remains pretty good at rounding up Big Audiences.

But that’s the great thing about the Louis C.K. Window. It lets Louis C.K. — and a relatively small group of people with big ambitions, and ardent fans — have it both ways.

“Yellow Submarine” is just what it sounds like — an illustrated version of the band’s 1968 movie, which is both trippy and kid-friendly (so British!). The book was first published in 2004, but the new version features interactive goodies like song samples and bits from the animated movie.

It’s a bunch of fun and will work on both iPads and iPhones, but you’re really better off enjoying this one on the former.

If you wanted to be churlish, you could note that the free book also serves as a promotion for a compilation album based on songs featured in the book.

Less churlish: Worth noting, yet again, that a year-plus exclusive is unheard of in digital music. Apple says it has sold 10 million songs and 1.8 million albums during that time; still love to know what they paid for that privilege.

The Macintosh TV

A new iMac with integrated TV functionality.

That’s the latest speculation from Wedge Partners analyst Brian Blair, who believes there will be a step between the Apple TV and the Apple Television.

“We believe Apple’s redesign of the iMac in the first half of 2012 will likely usher in some … TV capability into the iMac offering first, effectively taking the high end and larger screens of the iMac line and pushing it toward the TV market by integrating Apple TV and iCloud features into a slimmer all-in-one PC,” Blair writes. “Apple could effectively start with what they already have on the manufacturing line and slowly push their offering from 27 inches and scale up from there to 32 inches and then move on to the 42, 50 and 55 inch market.”

Blair figures these new iMacs would behave like Apple TVs, streaming movies, TV shows, photo slideshows and more to newer Wi-Fi-enabled televisions and providing them access to content stored on iCloud as well.

It’s not an outrageous idea, particularly as an interim step on the way to a true television set. Or as a good reason for consumers to abandon their current TV sets in favor of iMacs. This would be particularly compelling if Apple was able to persuade the cable companies to stream their content though the Apple TV interface. Add to that AirPlay mirroring on the iPhone, iPad, and iPod touch, voice navigation via Siri, and integrate it all into a 42-inch or better screen, and and you’ve got a pretty good reason to watch TV in your office. Or mount your PC on the living room wall.

Of course, Apple has been down this road before, first with the ill-starred Macintosh TV and then with its Front Row media center program, which was abandoned with the launch of Lion.

The company may not be interested in traveling down it again, particularly these days, when it seems so focused on disruptive changes. If Apple hews to that strategy for its HDTV, there will be no interim step. Just a single big announcement intended to upend the industry as we know it and send the competition scrambling.

A press release from the European Commission doesn’t provide much detail into the probe, which will look at Apple along with Lagardère Publishing’s Hachette Livre, News Corp.’s HarperCollins, CBS’s Simon & Schuster, Pearson’s Penguin and Germany’s Verlagsgruppe Georg von Holtzbrinck (News Corp. also owns this Web site).

The EU says it will “investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition.”

It also says it will look at the “agency” pricing agreements that Apple pushed through when it introduced the iPad back in 2010. Those deals allow publishers to set the retail price of their books, and give retailers like Apple’s iTunes a set percentage of the transaction.

The previous wholesale model, championed by Amazon, allowed retailers to set the price of books. After a series of high-profile negotiations, Amazon has moved to the agency model as well; the e-commerce giant still dominates the e-book market.