iTunes, iPod, and iTunes Store

By Jennalyn Balanga

What started the project of iTunes

• By 2001, Apple had revived its personal computer was a centerpiece of the digital revolution – wanted to set a new possibility

• Steve Jobs noticed the trend in 2000 where people were downloading music either from CDs or file sharing and burning it onto blank CDs

• Blank CDs- 320 million sold , 281 million ppl in US• Added a CD burner to its Mac but wanted it to

be simple to transfer music or burn music.

How did the project evolved• Did research and observe other music apps – Real, Jukebox,

Windows Media Player…saw it was complicated && thought half of the features were difficult to understand

• Bill Kincaid - former Apple Software Engineer who heard about the portable music player called the “Rio”

• Rio- portable player that played mp3s• From this idea, Jobs wanted to be able to create an interface for

the “Rio”• Asked Jeff Robbin and Dave Heller who are software engineers to

create a way to download music for “Rio” • They created “SoundJam” for “Rio” so it'll run on their Mac. • Soundjam- interface for Rio

• Apple bought Soundjam in July 2000,• But wanted it to be specific whether your

searching for an artist, song, genre, album• So started a project soon to be known as

iTunes by transforming Soundjam into a Apple product

• Revealed iTunes in Jan 2001

iPod

• After the iTunes was launched, the next step was to make a portable music player

• Realized they had an opportunity to design a device that works with their iTunes.

• Ipod was born making Apples not just a computer market but into being the world’s most valuable company

• Job also had passion in his work especially in music

iPod: Project Breakdown

• Jobs began pushing the portable music player in Fall of 2000

• Yet, Jon Rubeinstein didn’t think it was possible because of components weren’t available

• So Jobs waited for few more months to get started on the project

• Rubeinstein found a small LCD screen and a rechargeable lithium-polymer battery

• Problem: finding a disk drive with enough memory to store the music

Fixing the Problem

• By February, Rubeinstein went to their Apple supplier in Japan and at the end of his trip he had a meeting with Toshiba

• At the meeting they announced a new product they had in their labs that was est. to be ready by June.

• It was 1.8 inch drive that held 5GB of storage

• Reported back to Steve Jobs about his new findings while in Japan.

• “I know how to do it now,” Rubinstein told him. “All I need is a $10 million check.” Jobs immediately authorized it.

• Rubenstein negotiated with Toshiba to get the rights of the newly created device. Success.

• Getting the project started, Jobs hired Tony Fadell to the project because of his experience

• Made him the project leader • Fadell hired 20 people for the project to create

a portable music device• Jobs wanted this project to be launched by

Christmas and announce the device by October

• Few months working on the project, Steve Jobs, Tony Fadell, Jonathan Ive(designer engineer) and Phil Schiller had a meeting on what was created so far.

• Steve Jobs wanted to see objects not just slides. • Tony Fadell showed him his 3 models that was

suggested and needed approval on which direction to go

• Phil Schiller showed his model what needed to be added to the device: a trackwheel

• Jonathan Ive thought of the design of the iPod– Thought of the color white..PURE white

Fadell 3 Models

• First model: – Removable memory card for music

• Steve Jobs thought it was complicated

• Second Model: – Dynamic RAM Memory

pro: cheap in costcon: Lose all of the saved songs if battery ran out• Steve Jobs was not pleased

• Third Model– Put together a what a device would look like with a 1.8

inch hard drive• Steve Jobs was happy about this model

Phil Schiller: track wheel

• Thought of how users would go through the song list

• Simplest and easiest way to do so

• Track wheel was different • By turning the wheel, you

can scroll as fast as you can or as slow as you want

• Be able to zip through hundreds of songs instantly

• After the meeting on what directions to go, • The team continually worked on the project• The name “iPod” was proposed by Vinnie

Chieco because Jobs needed a way to introduce the new device

• Several back and forth conversations with Steve Jobs Innovative ideas he came up during the process– Changes in the devices he thought wasn’t right

• Ipod was launched on October 23, 2001

Final Product

• a drive that would hold a thousand songs

• an interface• scroll wheel that would let

you navigate a thousand of songs

• a FireWire/USB connection that could sync a thousand songs in under ten minutes

• a battery that would last through a thousand songs.

New Versions?

• Steve Jobs and his team: Rubinstein, Fadell, and Ive were able to keep up with new versions of the iPod

iPod MiniAnnounced in January 20041st generation: Released February 20, 2004 (4GB)2nd Generation:Released: the following year (4GB &&6GB)Discontinued on September 07, 2005Replaced by iPod Nano

Size: Business Card length

iPod NanoCurrently has 6 Generations

1st Generation: Released Sept 07, 2005(1GB – 4GB) Current: 8GB or 16GBWanted to create a small device that can fit in your pocket

iPod ShuffleIntroduced in January 2005Current 4th model : released September 2010Smallest model in the Apple iPod family

iTunes Store

• CD sales were down 9% in 2002• Jan 2002 Meeting: Paul Vidick of Warner Music,

Bill Raduchel of AOL time Warner wanted Steve Jobs/Apple to work with them/ eventually agreed to working with them

• But ended up spiltting up to complication on deciding on policies and how they should go about it

• So Steve Jobs created an iTunes store

iTunes Store• Steve jobs had to persuade the 5 top record companies to allow digital

versions of their songs to be sold . • Doug Morris head of Universal Music group had a contract but didn’t

continue in the 2007• Proposal was to sell digital songs for 99 cents and companies would

get 70 cents of that • Wanted to not jus sell albums but single songs• At first Music companies wasn’t fond of the idea until Steve Jobs told

them about his iPod and his iTunes store• March 2002 Jobs wanted to have a meeting with Schuler and Vidich

and the head of Warner music , Roger Ames• • Launched April 28, 2003

Window + iTunes

• Windows companies noticed that Apple was beating them in sales

• Steve Jobs thought it was a good business sense to make it available to windows

• Would bring in more profits

• Allow the iPod to work with Windows• Using MusicMatch• Gave them the instructions on how to connect

to the device• Steve Jobs would also need to go back to all

the companies that agreed to put their music in iTunes Store to be notified about the changes

• Steve Jobs had to renegotiate with those companies

• Problems arises when Sony's felt Steve Jobs was changing the terms after it was finalized

• Other companies didn’t mind• iTunes was launched for Windows in October

2003

Final Product

• Own your songs • burn them on CDs• be assured of the download quality, get a

preview of a song before you download it• Use it with your iMovies and iDVDs to “make

the soundtrack of your life.”• Each song: 99 cents

Success of the iTunes Store

• Started with 200,00 tracks• Sold 1 million songs in the 1st 6 days• 70 million songs in the 1yr• By Feb. 2006 sold it 1billionth songs• Became a trusted with user online identities and

payment info• Built a database of people who trusted Apple with

their information• By June 2011, had 225 million users in the database