Apple CEO Steve Jobs rarely speaks at events not hosted by Apple itself. But Tuesday night, less than a week before he’s scheduled to take the keynote stage at Apple’s Worldwide Developers Conference June 7, he sat down for a 90-minute interview with the Wall Street Journal’s Walt Mossberg and Kara Swisher at the D8 conference. In that time, he gave his take on:

- the smartphone market (“[Google] decided to compete with us, so they are.”)

- Apple’s ongoing battle with Adobe (“We succeed by choosing which horses to ride very carefully, technologically.” read: Flash is headed “for the graveyard.”)

- the Gizmodo iPhone leak (“Someone should make a movie out of this.”)

- AT&T’s network issues (“Things in general, when they start to fix them, get worse before they get better. And if you believe that, things should be getting a lot better soon.”

- Apple TV (“The TV industry has a subsidized business model that gives everybody a set top box for free, and that squashes any opportunity for innovation.”)

- iAd advertising platform (Apple will allow other ad networks on iPhones/iPads, but not third-party analytics software like Flurry).

- The origins of the iPad (the concept both predated and inspired the iPhone)

But here’s the takeaway for the music industry: Lower your prices. Addressing a question geared more towards helping the print media business, Jobs revealed his thoughts on how the overall content industry should approach the problem of getting people to pay for content.

“Price it aggressively and go for volume,” he said. “The market right now is set up to be far more responsive to consumer demand for what prices need to be than it was six months ago. Prices may go up in near future, but if consumers want the prices to be less, they will be far more responsive to those signals then they were six months ago.”
Another point to note—Apple’s advertising strategy, which Jobs says is a key way to keep those prices down.

“We’re going into the ad business so we can help developers make money to keeps apps free or low cost,” he said. “We’re not going to make a lot of money.”