January 9, 2001: iTunes Launches and Saves Music

On January 9, 2001, Apple launched iTunes as a free Mac application to organize digital music. Napster was destroying the music industry through illegal file sharing. Steve Jobs saw an opportunity to make buying music easier than stealing it. Two years later, the iTunes Store proved him right.

Why Record Labels Almost Rejected iTunes

When Steve Jobs approached record labels in 2002, they were terrified of digital downloads. Labels wanted to charge different prices for songs, with hits costing more. Jobs refused, demanding a flat 99 cent price. Warner Music initially refused. Jobs convinced them by showing Napster was already destroying their business for free.

The 99 Cent Strategy That Changed Everything

Jobs chose 99 cents because it felt like impulse purchase pricing. At that price, buying a song was easier than finding a pirated copy. Users could buy just the hits they wanted instead of entire albums. Record labels hated this because albums had subsidized their business. Within three years, iTunes dominated with 70 percent market share.

How iTunes Made Piracy Obsolete

Before iTunes, downloading illegal music from Napster was a nightmare. Files had viruses, wrong titles, and terrible audio quality. iTunes offered perfect quality, correct metadata, and album art in 30 seconds. For 99 cents, users got convenience, safety, and guilt free listening. Piracy seemed like more trouble than it was worth.

The Rip Mix Burn Controversy

Apple advertised iTunes with the slogan Rip, Mix, Burn, encouraging users to create custom CDs. Record labels panicked, believing Apple was promoting piracy. Jobs argued he was describing what people already did legally. The phrase became iconic, representing iTunes as a tool for music lovers and the cool alternative to illegal downloading.

Why Labels Later Regretted the Deal

By 2007, iTunes controlled 70 percent of digital music sales. Record labels regretted giving Apple so much power. They launched competing services like Amazon Music to reduce dependence. But none matched iTunes integration with iPods and iPhones. Jobs had locked labels into his ecosystem.

The Cultural Shift iTunes Created

iTunes killed the album era, making singles dominant again. Artists needed hit songs, not cohesive albums. The shuffle button changed how people listened. iTunes birthed podcast culture by adding support in 2005. It created the blueprint for app stores and streaming services that define modern entertainment.