How the iTunes Store Revolutionized the Music Industry - Book Club #17: "Steve Jobs"

in #blog6 years ago

Steve Jobs wasn’t just a visionary when it came to making revolutionary tech products like the Mac, the iPod and the iPhone, he was also a mastermind of merging technology and creativity by finding the A-list players in both fields and creating an environment where they could work together to make the best possible products.

A famous example of how well this worked out for Jobs can be seen in Toy Story (one of the most well-known movies on the planet which was created by Pixar - a company owned by Jobs). Another great example of Jobs’s ability to merge creativity and technology can be seen in the creation of iTunes and the partnerships and digital music sales that followed shortly after.


Current Book & Quotes From: Steve Jobs by Walter Isaacson

 
 



Revolutionizing the Music Industry - The iTunes Store

The iTunes store sparked a major revolution in the music industry and in the tech product industry. Jobs’s genius ability to merge technology and creativity allowed him to create an unstoppable business model.

The business model would end up focusing on selling digital music, which would drive the sales of iPods. The sales of iPods would then drive the sales of Apple computers which would continue to drive more sales to digital music. I couldn’t dream of a better business model than what Jobs cooked up back in 2002 when he set out to revolutionize the music industry:

“At the beginning of 2002 Apple faced a challenge. The seamless connection between your iPod, iTunes software, and computer made it easy to manage the music you already owned. But to get new music, you had to venture out of this cozy environment and go buy a CD or download the songs online. The latter endeavor usually meant foraying into the murky domains of file-sharing and piracy services. So Jobs wanted to offer iPod users a way to download songs that was simple, safe, and legal.”
“So Jobs set out to create an “iTunes Store” and to persuade the five top record companies to allow digital versions of their songs to be sold there. “I’ve never spent so much of my time trying to convince people to do the right thing for themselves,” he recalled.”

It’s really funny to me that Jobs had to actually spend weeks on end trying to convince the record companies to sell digital versions of their songs. It’s pretty obvious that everything was moving to digital and that consumers were going to buy less and less physical copies of music. This really shows the power of being able to be both creative and technologically inclined - the record companies were more creative than technical and thus, they couldn’t recognize the movement of the market to being focused on digital sales rather than physical sales. Jobs was able to relate to these companies by sharing his creative side and then he was able to bring the technology to the forefront for these executives and really show them what the future would look like.

“Jobs’s proposal was to sell digital songs for 99 cents—a simple and impulsive purchase. The record companies would get 70 cents of that. Jobs insisted that this would be more appealing than the monthly subscription model preferred by the music companies. He believed that people had an emotional connection to the songs they loved. They wanted to own “Sympathy for the Devil” and “Shelter from the Storm,” not just rent them”

Interestingly enough, I feel that we’ve actually reversed the music industry over time. A lot of consumers now prefer the subscription-based model offered by companies such as Spotify, Youtube Red and now Apple Music as well. The technology just wasn’t good enough at the time when Jobs was creating the foundations of the iTunes store to offer a fully streamable subscription option like what’s available today.


Here's the Question of The Day, don't forget to post your answers in the comments!

What 2 industries or areas of expertise do you think you could potentially merge together to create something revolutionary?

Thanks for reading! Don't forget to leave your thoughts below and I look forward to seeing you in the comments!

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Wow!! What a great question @khaleelkazi. Music apps today still amaze me. When I was a teenager we went to the mall to buy music. Kids had no problem paying ten or twenty dollars for a CD and now those CDs are in land fills behind Bemis woods.

Two things we can merge together. A key example is cryto and social media but it's been done.

I'd like to consider myself creative and I know about music but when I get to singing or playing I mess up the time or get distracted. My wife is disciplined in piano and singing and in keeping time but her music has no punch. If we made music together it would be great.

I hope one day that will happen.

@mineopoly

Thanks @mineopoly! I still remember when I used to buy CDs as well. I was very young when I made the switch from CDs to burning songs and sharing them with friends on our big, clunky computers. I remember when I got my first apple computer and it was a game changer - It was an iBook G4 and it was like buying a unicorn - magical!

Ahh yes crypto and social media - it's a very promising combination and I already love how it's playing out on the steem blockchain with d.tube, steemit, etc. I'm really excited to see where it takes us!

I love music as well, though I'm definitely not disciplined enough about practicing more often. Playing drums and guitar are 2 things that I really want to get back to doing every day, I miss it but it drives my roommates crazy!

I also hope you make that happen, I'm sure it would be incredible to hear!

Thanks for the encouragement. We are supposed to "make beautiful music together." My friend uses electronic drums with headphones but it is still kind of annoying to his wife so she moved him to the basement. Electric guitars are similar but are not as fun for me as acoustic.

I just learned about Gopax today and I can trade Steem for Korean won directly to my Korean bank account. I can also trade all kinds of crypto there. I think one day they may even have a debit card.

I love your story of the history of apple in your life. I learned basic language on an apple in 1986. They donated a ton of computers to public schools. Today apple offers the best apps for musicians and artists.

If I had some extra money I would buy a recording set up for my youngest son to make music.

Thanks for your reply. Now it's Monday morning in Korea and I have an open class this week for parents and administration:)

Anytime @mineopoly! When I first bought my drum set I considered an electric one, it just doesn't have the same feel for me as a regular drum set even though it is much much quieter (though as you said, not 100% silent).

Wow that's awesome! I haven't heard of Gopax yet, but I'll definitely check it out! I hope one day we can get a direct Steem-USD debit card as well!

Thanks! Apple has had a really large impact on my life growing up because I used so many of their various products to help me in school, art, business and even gaming when I was younger - you could say that it really shaped who I became as a person.

That's great, I hope you can get that set up! I love that you encourage your kids to be creative - from art to music - my parents were also encouraging when it came to being creative, though they weren't all that creative themselves, it really helped me grow as a person and find passion in various projects and activities!

Thanks for the encouragement. We are supposed to "make beautiful music together." My friend uses electronic drums with headphones but it is still kind of annoying to his wife so she moved him to the basement. Electric guitars are similar but are not as fun for me as acoustic.

I just learned about Gopax today and I can trade Steem for Korean won directly to my Korean bank account. I can also trade all kinds of crypto there. I think one day they may even have a debit card.

I love your story of the history of apple in your life. I learned basic language on an apple in 1986. They donated a ton of computers to public schools. Today apple offers the best apps for musicians and artists.

If I had some extra money I would buy a recording set up for my youngest son to make music.

Thanks for your reply. Now it's Monday morning in Korea and I have an open class this week for parents and administration:)

Thanks for the encouragement. We are supposed to "make beautiful music together." My friend uses electronic drums with headphones but it is still kind of annoying to his wife so she moved him to the basement. Electric guitars are similar but are not as fun for me as acoustic.

I just learned about Gopax today and I can trade Steem for Korean won directly to my Korean bank account. I can also trade all kinds of crypto there. I think one day they may even have a debit card.

I love your story of the history of apple in your life. I learned basic language on an apple in 1986. They donated a ton of computers to public schools. Today apple offers the best apps for musicians and artists.

If I had some extra money I would buy a recording set up for my youngest son to make music.

Thanks for your reply. Now it's Monday morning in Korea and I have an open class this week for parents and administration:)

Steve Jobs leapt us into the 21st century, essentially. “It’s pretty obvious that everything was moving to digital and that consumers were going to buy less and less physical copies of music” Exactly, he recognized the problem and created the solution. Adapt or die. That’s why Apple is the giant it is today. Steve hatched and mastered the classic “$0.99” song!! Hahaha

Don’t laugh too hard now, but I’ve thought about this idea before. What if we were to effectively merge drone technology and delivery food? If the technology ever gets there (I believe it already is) we could cut the wait time for food we delivered 2-3x, especially in highly populated areas :)
“What if someone steals the drone?” – Why would they? The person ordering the food already paid for it using a credit card, and/or the company has the address that the drone was sent. Plus could use a tracking chip haha!
If these two merged as beautifully as I think they could, every restaurant/fast food restaurant could enjoy the increased profits while the rest of us can stuff our faces a little faster ;)

I agree, he's absolutely one of the most influential people in the technological explosion that has occurred over the last few decades! Adapt or die - exactly. You can see all the contrasts between Apple and many other tech companies and especially with the record labels. The labels that were unwilling to innovate their way towards digital music lost in the long-run while Apple flourished because it adapted and created the foundations of the future!

I'm with you my friend, drone deliveries aren't too far off in my opinion. The only issue that I could see is a scenario where too many companies get access to drone deliveries and then there becomes a problem of "overpopulation" of drones delivering various packages. There would definitely need to be some sort of regulatory body overseeing the usage of drones, especially in highly populated cities.

Haha yeah, it would be a win-win for the companies and for us, Amazon is leading the drone charge, that's for sure!

I have always been blown away that there were mp3s and players years before itunes, but Apple did it right.

I could merge guaranteed minimum income tokens with the government in our country if I ran for office.

Yeah me too, that's just what happens when something revolutionary comes out like iTunes or the internet, it becomes hard to imagine a time before it! That's a really interesting point, I think a minimum income token could be a really interesting idea to implement in a small town or city and see how it works out. There are a few places out there that are starting to test Universal Basic Income, it'd be interesting to see a tokenized component of that!

I am glad you get the concept. With AI and Robotics, it will be required in our society!

I 1000% agree with you! I forget the exact numbers, so take this with a grain of salt, but I thought I heard somewhere that over 50% of all jobs will become automated over the next 40 years.

Makes sense and with further innovation that number may go up!

Wait! Jobs owned pixar!! I did not know that!
So he was the one that started the whole digital music movement... not bad!

What 2 industries or areas of expertise do you think you could potentially merge together to create something revolutionary?

If i told you you would steal my brilliant idea ! I know what you are doing @khaleelkazi xD
I actually don't know, people already did most of the stuff... might need to think about this one for a couple of days...

Yeah he bought it when it was a small company! He was the one to make it well-known and he took it public.

Hahaha you have figured out my secret plans @teutonium!!! xD This question is definitely a thinker, I'm sitting on it myself and continually re-asking myself in my head. It's a really great question and can prompt some real action if you start executing towards your answer!

@khaleelkazi Actually enabled the genius of Jobs to integrate technology and creativity. ITunes is a very wonderful phenomenon. In my opinion, it would be possible to work in digital currencies instead of currencies. This will be a supernatural development in life. And I'm sure this will happen. Your opinion on the idea?

Wish you a good weekend

Restem your post

Oh absolutely digital currency (as in debit and credit cards) is already being used a lot more than cash these days. I think it's inevitable that we'll see larger number of people switch over to using only digital currency

The man who disrupted the Phone industry much respect for him! Your question is the Billion Dollar question lol

Yeah he's truly amazing to read about! It's a question that'll make you think, that's for sure! What do you think your 2 skills might be?

I'm not sure I know I'm good at bringing certain people together to create things and marketing.

That's a great start, I keep asking myself this same question, it's a great one to spend some time thinking about!

I agree, that’s a great start. I’d have to think about the question more as well, it’s a tough question!

He signed up with Black eyed peas for the itunes, dint he?
Your blogs always revise my memories with this book!

I know he signed Bob Dylan and most of the major artists, I don't think they mentioned the black eyed peas in there, but the scope of iTunes was so wide, I'm sure he did! Thanks, I'm glad you like these posts! I love making them and talking about these books!

Amazing post dear. Keep it up, thanks for sharing.

Thanks I'm glad you like the post! What was your favorite part?

you need to be careful when sharing media files through iTunes. Trying to circumvent copyright protection not only makes it harder for musicians and other creators to make a reasonable living from their work, but it can also land you in legal trouble for violation of copyright law.

That being said, there are files that can be shared, and a number of iTunes applications that can help you share playlists with like-minded listeners.

If not reading this biography, maybe many would have been unknown! Thanks for sharing!

I agree! Maybe I should sit down and read this bio soon as well!

You definitely should! I highly recommend it - it's a great read and very insightful! It's long and that's why I've been able to churn out so many amazing lessons from it!

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