It was from the New York Times [1] they asked Steve about the Kindle reader.
> “It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”
So it seems like he meant books specifically. Still strange considering he then opened iBooks but I guess this was a case of Apple being on the back foot.
> “It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”
[1] - http://bits.blogs.nytimes.com/2008/01/15/the-passion-of-stev...