Revolution #3. iTunes = Kaching!
Bundled with iPods, iTunes ended up on the desktop of PC and Mac users across the world. More than the iPod, it was this software that allowed Steve Jobs to sell his idea to the recording industry.
What Jobs realized was that even if an artist only sold ten songs on iTunes, Apple still made money. One-click shopping and 99 cent downloads ensured that fans could fulfill every impulse. Though fewer albums were going platinum, Apple was still getting stupid rich off the percentage cut it takes on every iTunes sale.
Apple went on to sell 300 million iPods and 10 billion tracks via the iTunes Store, leapfrogging Wal-Mart and Best Buy as the world's biggest music retailer. "His stock went from $8 billion to $80 billion and ours went in reverse," said Warner Bros CEO Roger Ames. "Not his fault."
After negotiating with movie studios Apple began offering digital movie and television rentals, locking down yet another market where industry titans had failed.