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TAYLOR SWIFT HAS APPLE CO. CHANGING ITS TUNE ON ROYALTIES


JUNE 22, 2015 ---In this Aug. 11, 2014 file photo, Taylor Swift attends the world premiere of "The Giver" at the Ziegfeld Theatre in New York. Evan Agostini/Invision/AP, File PALO ALTO, Calif. Taylor Swift has Apple changing its tune.
Hours after the pop superstar criticized the giant tech company in an open letter posted online, Apple announced Sunday that it will pay royalties to artists and record labels for music played during a free, three-month trial of its new streaming music service. "When I woke up this morning and I saw Taylor's note that she had written, it really solidified that we needed to make a change," said Apple senior vice president Eddy Cue in an interview with The Associated Press. Apple had already agreed to share revenue from paid subscriptions to the new Apple Music service, which will cost $10 a month. But Swift said she would withhold her latest album from the service because Apple wasn't planning to pay artists and labels directly for the use of their music during the free, introductory period. "We don't ask you for free iPhones. Please don't ask us to provide you with our music for no compensation," Swift wrote in an open letter posted Sunday on her Tumblr page, under the heading "To Apple, Love Taylor. "  READ MORE...

ALSO: Taylor Swift's Success Story


Taylor Swift Music sensation -She was ranked No. 1 as Forbes magazine's highest paid celebrity under 30 in 2012, beating out Justin Bieber, Rihanna and Lady Gaga with a salary of $57 million. She has also been tapped for four CMA nominations in 2009—"Female Vocalist," "Music Video of the Year," "Best Album" and "Entertainer of the Year"—as well as six American Music Award nominations. The following year, Swift shared some of her fortune to help others. She funded the $4 million Taylor Swift Education Center at the Country Music Hall of Fame in Nashville.
Taylor Swift has been making waves in the country world since she released her first single, "Tim McGraw," in 2006. Three years later, the 19-year-old is a favorite of country and pop fans alike, and she's the only country artist to ever win a MTV Video Music Award. Before Taylor was a singer, she was a poet. She won a national poetry contest when she was only 9 years old, and by the age of 12 she was putting her poems to music. "If you can put words together the right way, and if you put the right rhymes at the end of the right sentences, you can make words bounce of a page. That's always been my favorite thing," she says. "I've made sure that in any situation and with any record label, I'm allowed to write my own music." READ MORE...

ALSO: How Steve Jobs killed free music on the Web


MAY 8, 2015 ---APPLE founder, the late Steve Jobs --If you're happily listening to Spotify or Pandora for free, you might think that music streaming is pretty cool. But Apple is trying to kill free music, and it isn’t the first time. The company has a playbook for this sort of thing, penned by founder Steve Jobs. Apple is reaching out to artists about curating their own channels for its streaming service Beats Music, which is expected to be unveiled in June. Beats will be a streaming service, like Spotify. But unlike its rival, Apple's product is expected to be a subscription-only service. With Beats Music, Apple is trying to insert itself between two groups – consumers and record labels. Consumers have shown, yet again, that there is a huge demand for free music. Record labels and artists want them to pay for it. And now Apple appears to believe that there is money to be made by getting involved. It's a move the company made before, when it launched iTunes and the iPod. READ MORE...

ALSO INVENTION OF THE iTunes: How Steve Jobs Saved the Music Industry


OCTOBER 21, 2011 ---Apple's iTUNE --
As I write this, I am aware that I will undoubtedly take a lot of criticism from fellow music-industry professionals. But it's important to tell the truth and examine the facts dispassionately. And the truth is that Steve Jobs saved the music industry.
In the late 1990s, computer and Internet technology had reached a point that made the transfer of reasonably sized, high-quality MP3 files extremely easy and inexpensive for millions of people. Once that point was reached, the music industry was set on a collision course with modern technology. In 1999, on the heels of the initial success of peer-to-peer file sharing sites like Napster, lawsuits were filed. But lawsuits would not solve the overwhelming issue: Music had become broadly available online, and access was easy—not to mention free. Sure, it was technically illegal, but the new technology was breaking unprecedented legal ground, and a population that was largely uneducated on intellectual-property law ultimately took advantage of this access. You could say that the downloaders were ignorant opportunists. READ MORE...

ALSO: Seven Ways iTunes Changed the Music Industry


APRIL 25, 2013 ---In less than 10 years, iTunes has become so embedded in people’s everyday lives that it has all but disappeared into the overall fabric of our digital commerce.
It’s hard to remember a time when selling a song by itself for $3.49 was an option, which it was, at least as a proposal, before iTunes came along. Or when people had to buy an entire album in order to get that one hit single. For the industry, many business practices have become the norm – getting 70% of each sale, having proper invoices detailing exactly how many tracks have been sold and the ability to sell music on just about every device with a chip in it. What’s now taken for granted as standard operating procedures had to be carved through months of painful haggling, desperate handwringing and enough cursing to fill a thousand books. Here are seven ways in which iTunes changed the landscape, in the words of the executives in the music business who played a part in making it happen. 1. iTunes created the first legitimate digital music store that competed effectively with piracy. CONTINUE READING TO THE 7th WAY........

ALSO: Apple's Steve Jobs ‘single-handedly’ created the digital music market


OCTOBER 6, 2011 (The day he died) ----Steve Jobs, the founder and former CEO of Apple who died October 6, 2011 at aged 56, has been praised for revolutionising the music industry. Photo: Time Life Pictures/Getty Images/AP/REX E
Apple founder died after cancer battle  On the day of his death, music industry and technology analysts have praised the way Jobs managed to create iTunes in 2003, saying he dragged the record labels into the web age. Mark Mulligan, digital music expert and former senior Forrester analyst, said: “Steve Jobs single-handedly pulled the music industry into the digital age. Until he created iTunes, there was no legal digital music service which was fit for purpose. “When Jobs convinced the record labels to put their collections in his store online – it change everything. Up until that point, if you bought a track online, you could only access it on the PC you had bought it on – something inconceivable nowadays…Without Jobs’s intervention the digital music market would not be where it is today.” In April 2003, just as the third-generation iPod was released, Apple launched iTunes with 200,000 songs. Before iTunes, music executives had failed to be convinced about the success of an online music market. But coupled with Apple's hugely-successful iPod - launched just two years earlier - Steve Jobs proved it was a market worth exploring. THE FULL REPORT


READ FULL MEDIA REPORTS:

Apple changes tune on royalties after Taylor Swift complains


In this Aug. 11, 2014 file photo, Taylor Swift attends the world premiere of "The Giver" at the Ziegfeld Theatre in New York. Evan Agostini/Invision/AP, File PALO ALTO, Calif.

MANILA, JUNE 29, 2015  (PHILSTAR)  By Brandon Bailey (Associated Press) | Updated June 22, 2015 - Taylor Swift has Apple changing its tune.

Hours after the pop superstar criticized the giant tech company in an open letter posted online, Apple announced Sunday that it will pay royalties to artists and record labels for music played during a free, three-month trial of its new streaming music service.

"When I woke up this morning and I saw Taylor's note that she had written, it really solidified that we needed to make a change," said Apple senior vice president Eddy Cue in an interview with The Associated Press.

Apple had already agreed to share revenue from paid subscriptions to the new Apple Music service, which will cost $10 a month. But Swift said she would withhold her latest album from the service because Apple wasn't planning to pay artists and labels directly for the use of their music during the free, introductory period.

"We don't ask you for free iPhones. Please don't ask us to provide you with our music for no compensation," Swift wrote in an open letter posted Sunday on her Tumblr page, under the heading "To Apple, Love Taylor. "

READ MORE...

Apple has maintained that it negotiated revenue-sharing at rates that are slightly higher than the industry standard, to compensate for the three months that it plans to offer its streaming service without charge.

"We had factored that in," Cue said Sunday. But he added, "We had been hearing from artists that this was going to be rough on them, so we are making this change."

Cue declined to say how much Apple will pay in royalties for streaming during the free trial period. H

e said Apple will share 71.5 percent of its revenue from paid subscriptions within the United States and 73 percent from subscriptions outside the country, while other streaming services generally share about 70 percent.

Some artists and independent labels had worried they would miss out on opportunities to get a financial return from new music that is released during the three-month trial. Swift said she spoke out on their behalf.

Swift wasn't immediately available for comment on Apple's change of heart. But she posted a reaction on Twitter late Sunday, saying "I am elated and relieved. Thank you for your words of support today. They listened to us."

Cue wouldn't comment on whether she will now make her album "1989" available on Apple Music. But he said he spoke with Swift personally on Sunday. "She was very pleased to see that we would give her a call right away and have a discussion," he said.

Since Apple began selling digital music through its iTunes store in 2001, he added, "We've always loved music and have strived to make sure that artists are getting paid for their work."

Swift had written in her letter that she found Apple's original stance to be "shocking, disappointing, and completely unlike this historically progressive and generous company."

While praising Apple for developing a paid music service that will compensate artists, she added, "We know that this incredible company has the money to pay artists, writers and producers for the 3 month trial period."

The singer and songwriter has been outspoken on the issue of compensating musicians for streaming music. Last year, Swift pulled her catalog of recordings from Spotify after complaining about its use of her music on the free, ad-supported version of its service.


OPRAH.COM

Taylor Swift's Success Story T


Taylor Swift Music sensation -She was ranked No. 1 as Forbes magazine's highest paid celebrity under 30 in 2012, beating out Justin Bieber, Rihanna and Lady Gaga with a salary of $57 million. She has also been tapped for four CMA nominations in 2009—"Female Vocalist," "Music Video of the Year," "Best Album" and "Entertainer of the Year"—as well as six American Music Award nominations. The following year, Swift shared some of her fortune to help others. She funded the $4 million Taylor Swift Education Center at the Country Music Hall of Fame in Nashville.

Taylor Swift has been making waves in the country world since she released her first single, "Tim McGraw," in 2006. Three years later, the 19-year-old is a favorite of country and pop fans alike, and she's the only country artist to ever win a MTV Video Music Award.

Before Taylor was a singer, she was a poet. She won a national poetry contest when she was only 9 years old, and by the age of 12 she was putting her poems to music. "If you can put words together the right way, and if you put the right rhymes at the end of the right sentences, you can make words bounce of a page. That's always been my favorite thing," she says. "I've made sure that in any situation and with any record label, I'm allowed to write my own music."

READ MORE...

At 14, Taylor moved from Pennsylvania to Nashville, where she played her demo CD for anyone who would listen. Her persistence certainly paid off—she was only 16 when "Tim McGraw" first hit the airwaves.

Taylor says her success comes from her determination to realize her dreams. "Being raised by two parents who brought me up with the idea that the world didn't owe me anything really helped," she says. "But I loved music, and so I started writing songs and playing guitar."

Even with all her hard work, Taylor says her career wouldn't be the same without her fans—she even knows some of them by name. "I love my meet-and-greets because I have a lot of girls who come through the line and I've met them six times before," she says. "You feel like you're getting together with your friends because a lot of the people in the crowd are at the age where they'd be my friends if I was in college somewhere right now."

When it comes to friends, Taylor says she surrounds herself with people who can relate to her life. "I have a lot of friends who do what I do. Either they're actresses or singers or things like that," she says. "But my best friend, Abigail, we met when I was 15. First day of school freshman year we sat next to each other in English. She wanted to be a swimmer and go off on a college scholarship for swimming and I wanted to be a singer. Now she's off at Kansas on a swimming scholarship and I'm singing."

Her day-to-day life might be different than when she met Abigail freshman year, but Taylor says she tries to maintain a normal attitude. "Nothing in my life now, as far as activities and the way people perceive me when I walk into a restaurant, is normal," she says. "But it's better [than I imagined it would be]. I always dreamed about what it would be like if I would walk in somewhere and I didn't have to introduce myself to people, they already knew my songs. That's crazy and I love it so much. It's one of the most amazing things that's actually happened to me."

Taylor says most of the songs she writes are about boys. But when it comes to dating, she says she's not someone who always needs a boyfriend. "I was 15 when I had my first boyfriend ... but as far as relationships, that's me making an exception," she says. "I'm better single, I think. [My life] is kind of busy, but I feel like if I were to meet the right person, I would make time for it."

For now, she's focusing her efforts on her career and moving into her new condo. "I bought it and I'm really excited because all my friends moved out and went to college last year and I'm getting those phone calls where they're like, 'Still living with Mom and Dad, huh?'" she says. "So now I'm working on moving out. I'm doing all kinds of construction. That's all I talk about now, tiles and paint and stuff. It's really boring."

Published 10/14/2009


BUSINESSINSIDER.COM

Apple has a playbook for killing free music, and it was written by Steve Jobs LUCY ENGLAND MAY 8, 2015, 1:08 PM 7,905 10 FACEBOOK LINKEDIN TWITTER EMAIL PRINT


APPLE co-founder & CEO, the late Steve Jobs Justin Sullivan/GettyImages

If you're happily listening to Spotify or Pandora for free, you might think that music streaming is pretty cool.

But Apple is trying to kill free music, and it isn’t the first time. The company has a playbook for this sort of thing, penned by founder Steve Jobs.

Apple is reaching out to artists about curating their own channels for its streaming service Beats Music, which is expected to be unveiled in June.

Beats will be a streaming service, like Spotify. But unlike its rival, Apple's product is expected to be a subscription-only service.

With Beats Music, Apple is trying to insert itself between two groups – consumers and record labels. Consumers have shown, yet again, that there is a huge demand for free music. Record labels and artists want them to pay for it. And now Apple appears to believe that there is money to be made by getting involved.

It's a move the company made before, when it launched iTunes and the iPod.

READ MORE...


VINYL LONG-PLAYING RECORD

Napster — which let people share and download each other's digital music over the internet — had shown that there was a huge demand for free music, undermining the industry's bottom line.


CDs

CDs had killed vinyl but Napster was threatening to kill CDs. While several music industry copyright lawsuits killed off Napster, copycat sites like Kazaa and Limewire became even bigger and better, and kept free music file-sharing alive.

A quick look back at Apple's history shows how Steve Jobs turned this pirate's paradise into a massive money maker for the company.

The story is interesting because it can be used as a potential playbook for the way Apple might force free music streaming companies out of business — even though they are totally legal.

May 1999: Shawn Fanning launches a peer-to-peer file sharing site focused on music, using his childhood nickname to come up with the brand 'Napster'.

Sean Parker thinks its a fantastic idea, as do the 20 million people using the site by March 2000.


Shawn Fanning, aka NapsterFlickr/Joi

April 2000: Metallica sues Napster for copyright infringement after their new song "I Disappear" was distributed on the site before it was officially released.

October 2000: A&M Records Inc. sues Napster for copyright infringement.

February 2001: An appeals court sides with the record labels, and Napster is ordered to monitor and block access to copyrighted files on its site. A permanent injunction is ordered in March.

March 2001: Free music sharing service Kazaa is launched by Niklas Zennström, Janus Friis, and Priit Kasesalu.

Many other p2p apps were launched while Napster was still in business, and others such as LimeWire and BitTorrent would follow.

July 2001: Napster shuts down... but file sharing didn't die with it.

In response to the rapidly growing demand on Kazaa and Limewire, music labels were issuing multiple lawsuits, and virtually ‘locking’ CDs and online video files using watermarks and other digital rights management (DRM) so they couldn’t be shared like free MP3s.

Instead of trying to quash the demand for digital music altogether, however, Steve Jobs saw an opportunity.

October 2001: Apple lifts the lid on the very first iPod, which had 5GB of storage, begging to be filled. At first, iTunes existed purely as a music management system, and was only available on Mac.

April 2002: Jobs decides that the rise of digital music is inevitable and that labels (and Apple) can make money from it. Apple set out to make digital songs cheap and easy to download — legally — and created a beta version of the iTunes store.

According to Rolling Stone, he reached out to Warner Music Group and was called in to demonstrate the product to Warner Music Group executive Paul Vidich and a small group of Warner Music staff. They were hooked.

"It was going to be their storefront, the first thing that consumers saw," Vidich told Rolling Stone in 2013. "I remember thinking, 'This is so simple. It works. It's great.'"

Jobs then moved onto to the other big US labels, such as Universal and Sony.

One of the biggest problems was convincing labels to license their entire collection for digital use, with each song listed separately.

This would undercut the profits labels made from forcing consumers to pay for songs they didn't want when buying an artist's new album.

April 28th, 2003: The iTunes Music Store opens, and sells 1 million downloads in its first week. By allowing labels to retain some digital rights management, Jobs managed to convince them to sell digital versions of songs on iTunes for just 99 cents each.

iTunes made songs cheap and easy enough to obtain that they were finally able to compete with free illegal downloads.

Steve Jobs had proved that people would voluntarily pay for music, if the product they were getting was good enough.


Angus Young, AC/DC. Flickr/Harry Potts. Their music still isn't available on iTunes.

Today: Since then, the music industry has undergone a seismic shift.

Services such as Pandora, Spotify and SoundCloud allow users to stream music for free, using advertising or a premium paid service to raise funds for royalty payouts. But too few users are signing up for paid tiers, preferring to stick to ad-supported streaming.

Meanwhile, sales and revenues from iTunes are falling, as streaming once again teaches consumers that music can be free.

Sales of digital media fell 4% in the second quarter of 2015, and by 5% for the first six months of the 2015 fiscal year, Apple's Q2 results show.

Record labels — and Apple — are not happy.

The Cupertino company needs to update its music business to remain relevant — and once again, it is winning over the record labels by rejecting the dominant free model.

Apple now has a huge amount of experience working with the industry, and there are even reports it is promising labels huge sums for taking their music off free streaming services entirely.

For the second time, Apple is about to insert itself between the record labels and the listeners, trying to offer a music product with a price low enough enough — and a music selection big enough — that consumers will choose the cheap version over the free one.

History shows: Apple has done this once. It can do it again.


WALLSTREETJOURNAL.COM

INVENTION OF THE iTunes: How Steve Jobs Saved the Music Industry By ED NASH October 21, 2011


Apple's iTUNE --Before iTunes, the stealing of MP3 files was rampant and seemingly unstoppable.

As I write this, I am aware that I will undoubtedly take a lot of criticism from fellow music-industry professionals. But it's important to tell the truth and examine the facts dispassionately. And the truth is that Steve Jobs saved the music industry.

In the late 1990s, computer and Internet technology had reached a point that made the transfer of reasonably sized, high-quality MP3 files extremely easy and inexpensive for millions of people. Once that point was reached, the music industry was set on a collision course with modern technology.

In 1999, on the heels of the initial success of peer-to-peer file sharing sites like Napster, lawsuits were filed.

But lawsuits would not solve the overwhelming issue: Music had become broadly available online, and access was easy—not to mention free.

Sure, it was technically illegal, but the new technology was breaking unprecedented legal ground, and a population that was largely uneducated on intellectual-property law ultimately took advantage of this access.

You could say that the downloaders were ignorant opportunists.

READ MORE...

he legal brawls would multiply—record labels, publishers, the Recording Industry Association of America, everyone got in on the fight, suing the file-sharing services, suing the college kids in dorm rooms who were utilizing them, even suing the Internet service providers.

At various points, injunctions were granted, settlements were offered and accepted, but the sharing continued. The stealing of music was rampant and seemingly unstoppable.

As technological advances continued, the innovations that made this "sharing" possible grew in sophistication. The genie would not go back into the bottle. The lawsuits were costly and cumbersome, and they weren't solving the problem. The music industry wasn't coming up with a viable solution either.

That shouldn't be surprising. After all, the music industry was not equipped for—or even conscious of—the idea of selling directly to the public.

The industry was built on the model of creators under contract to labels who push distribution to retailers who ultimately sold product to consumers.

The downloading was bypassing the retailers (and in some cases the labels) and going straight into the hands of the consumers, cutting out the traditional distribution chain that existed with physical product like CDs and cassettes.

The problem was clear, but a solution would require nothing short of a paradigm shift in the industry.

There would need to be changes in licensing from the major labels, technological implementation, a strong marketing plan and—perhaps most importantly—all delivered at a price that would entice illegal downloaders to pay for music that was already free for the taking.

Steve Jobs presented the answer.

Jobs and Apple introduced the iPod and iTunes software in 2001 to marginal success.

But the real shift came in 2003 with the launch of the iTunes Store. Jobs not only had a vision, he had a plan—a plan that the music industry was initially reluctant to take part in.

Jobs was intent on a singles-based sales structure with optional pricing for full albums. He determined that 99 cents per single song would be the standard price point—a suggestion that rankled many industry traditionalists.

Nonetheless, Jobs eventually negotiated licensing agreements with all of the major labels. Of course in hindsight we see that there were few other options, but to his credit Jobs could already see what was ahead.

In a 2003 interview with Rolling Stone magazine, Jobs spoke openly about the problems that faced the major labels: "When the Internet came along, and Napster came along, they didn't know what to make of it.

A lot of these folks didn't use computers—weren't on e-mail; didn't really know what Napster was for a few years.

They were pretty doggone slow to react. Matter of fact, they still haven't really reacted, in many ways." Jobs recognized the path that technology was taking and the effect it would continue to have on the music industry and, more importantly, on music itself.

He also understood intellectual property, and this may have been the most important piece of the strategy that saved the music industry.

In that same Rolling Stone interview, Jobs said, "If copyright dies, if patents die, if the protection of intellectual property is eroded, then people will stop investing.

That hurts everyone. People need to have the incentive that if they invest and succeed, they can make a fair profit. Otherwise, they'll stop investing. But on another level entirely, it's just wrong to steal. Or, let's put it another way: it is corrosive to one's character to steal. We want to provide a legal alternative."

With iTunes, Jobs not only provided a legal alternative but a more convenient alternative. He understood that people would pay 99 cents a song if it were easier than stealing, and of equal importance he understood that the vehicle—the iTunes application itself—would need to be free.

And so iTunes didn't just carry Jobs's vision to fulfillment, it created a commercial superhighway that connected the artist to the consumer and rescued the industry.

A true innovator gives the market what it wants before the market knows what it wants. Steve Jobs was a true innovator. The music industry is still refining its models for business and is taking a hell of a long time to let the old models go. But music is being consumed more than ever, songs are delivered faster, and there is more variety at our fingertips than ever before.

It is a special time—uncertain, exciting, scary and quite exhilarating in its potential.

I am so thankful that Steve Jobs was a music fan, because he believed that its value was intrinsic when delivered effectively. He showed the music industry how to capture the value that was quickly being eroded by old-world ideals. He developed the technology and then built the marketplace that would allow music creators to communicate value and reap the benefit of their work.

It's not the world I imagined when I first entered this business, but in many ways it's better.

Thank you, Steve Jobs, for saving our industry. We owe you one.

Mr. Nash is president of Altius Management in Nashville, Tenn.


BILLBOARD.COM

Seven Ways iTunes Changed the Music Industry NEWSNEWSDIGITAL AND MOBILE By Alex Pham, Los Angeles and Glenn Peoples, Nashville | April 25, 2013 4:34 PM EDT

In less than 10 years, iTunes has become so embedded in people’s everyday lives that it has all but disappeared into the overall fabric of our digital commerce.

It’s hard to remember a time when selling a song by itself for $3.49 was an option, which it was, at least as a proposal, before iTunes came along. Or when people had to buy an entire album in order to get that one hit single.

For the industry, many business practices have become the norm – getting 70% of each sale, having proper invoices detailing exactly how many tracks have been sold and the ability to sell music on just about every device with a chip in it.

What’s now taken for granted as standard operating procedures had to be carved through months of painful haggling, desperate handwringing and enough cursing to fill a thousand books.

Here are seven ways in which iTunes changed the landscape, in the words of the executives in the music business who played a part in making it happen.

1. iTunes created the first legitimate digital music store that competed effectively with piracy.

READ MORE...

“Steve [Jobs] created something that made it so easy for people to buy music. He had a complete thought that went from iTunes to the iPod. It made complete sense, and it was something he felt people would be willing to pay for. In the end, he was right. It was all about having the right product.”

Doug Morris, CEO of Sony Music Entertainment and former head of Universal Music Group

2. iTunes + iPod turned digital music into a fashion statement.

“Steve made digital music fashionable. The iPod white silhouette campaign was a perfect representation of that. He turned music into a fashion statement, a wearable fashion statement. He made it sexy.”

Paul Vidich, angel investor and former head of digital at Warner Music Group

3. Digital music became ubiquitous through the combination of iPods and iTunes.

“Apple made music ubiquitous in a way it never was before. And they set music free from large PCs. Earlier MP3 players did that, too, but not like this. That ubiquitousness has driven a consumption of music that is unparalleled in the history of the world.”

Jeff Price, founder of TuneCore and co-founder of spinART Records

4. iTunes leveled the playing field for independent labels and artists.

“Apple was the great equalizer. With iTunes, it was a meritocracy. You couldn’t buy shelf space like you had to with all the other retailers. If you presented great music, iTunes would give you promotional space right alongside the major labels. They made it possible for independent labels and artists to compete with the majors.”

Robb A. McDaniels, Founder & CEO of Isolation Network Inc. and INgrooves

5. The 99-cent download became a standard price.

Steve Jobs “said to us, 'There're two things you have to accept: 99 cents for every single song, and every song has to be sold as a single.' And we went home and swallowed hard because that was tough for us to accept for us as a music industry…. If certain songs were really popular we should be able to set the price at whatever we thought was the right price as opposed to the $1 price. Steve said, 'You know, you've got to keep it simple, you've got to keep it clean.’”

Thomas Hesse, President, Corporate Development and New Businesses, Chief Digital Officer at Bertelsmann. He was Chief Strategy Officer for BMG Music Entertainment when the iTunes Music Store launched

6. The economics of the single rose in importance.

“Some people say Apple unbundled the album. In my mind, it had already been unbundled by piracy. So why not do it in a way in which we get paid? That’s what iTunes really did.”

Doug Morris, CEO of Sony Music Entertainment

7. Labels got paid faster – much faster.

“Physical takes a lot of money to produce. There are a lot of headaches: shipping, tracking, breaking of CDs and vinyl. Back in 2003, … people were still buying CDs. But to get paid on CDs was difficult. There was always a problem getting paid. For a small label like Frenchkiss, we needed that money to come in every quarter. When the physical distributor would say, 'Hey, sorry, these all broke,' or 'The stores lost the CDs' or whatever excuses came up, it would stall our money. As digital started to grow, it allowed [labels] to get paid more promptly.”

Syd Butler, President of Frenchkiss Records


TELEGRAPH.CO.UK

Steve Jobs ‘single-handedly’ created the digital music market By Emma Barnett, Digital Media Editor3:44PM BST 06 Oct 2011


2011 PHOTO ----Steve Jobs, the founder and former CEO of Apple who died October 6, 2011 at aged 56, has been praised for revolutionising the music industry. Photo: Time Life Pictures/Getty Images/AP/REX E

Apple founder died after cancer battle 

On the day of his death, music industry and technology analysts have praised the way Jobs managed to create iTunes in 2003, saying he dragged the record labels into the web age.

Mark Mulligan, digital music expert and former senior Forrester analyst, said: “Steve Jobs single-handedly pulled the music industry into the digital age. Until he created iTunes, there was no legal digital music service which was fit for purpose.

“When Jobs convinced the record labels to put their collections in his store online – it change everything. Up until that point, if you bought a track online, you could only access it on the PC you had bought it on – something inconceivable nowadays…Without Jobs’s intervention the digital music market would not be where it is today.”

In April 2003, just as the third-generation iPod was released, Apple launched iTunes with 200,000 songs.

Before iTunes, music executives had failed to be convinced about the success of an online music market.

But coupled with Apple's hugely-successful iPod - launched just two years earlier - Steve Jobs proved it was a market worth exploring.


Chief News Editor: Sol Jose Vanzi
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