Summary

In 2002, internet piracy ran rampant due to programs such as Napster and Kazaa, causing CD sales to drop by 9%. To remedy this, record companies like AOL Time Warner, and Sony went to Jobs for help. Jobs explained that people were pirating music because there was no easy alternative to buy music online. Jobs suggested an online music store. However, Sony and AOL Time Warner disagreed, and developed their own subscription based music sites (meaning that the consumer did not own the music). These websites did not do well because they were clunky and not very intuitive.

Jobs later suggested that Apple launch a music store for the record companies and stated that it was a trial run since Macintosh only controlled 5% of the PC market. There was much negotiation as originally the companies objected to the idea that consumers could buy...