Hey guys, it’s Greg with Apple Explained, and today we’re taking a look at the history
Hey guys, it’s Greg with Apple Explained, and today we’re taking a look at the history

of iTunes. But I want to address something before we begin. Many of you are recommending
of iTunes. But I want to address something before we begin. Many of you are recommending

different video ideas which I really appreciate so keep them coming, but you should know that
different video ideas which I really appreciate so keep them coming, but you should know that

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ado, let’s begin.
ado, let’s begin.

The story of iTunes is full of excitement, disappointment, and even some controversy
The story of iTunes is full of excitement, disappointment, and even some controversy

that all began in 2001. Now at that time, the iPod didn’t exist and playing music
that all began in 2001. Now at that time, the iPod didn’t exist and playing music

from CDs was standard. There were MP3 players, but the industry was still in its infancy
from CDs was standard. There were MP3 players, but the industry was still in its infancy

and wouldn’t explode until a few years after the iPod was released. Most computers were
and wouldn’t explode until a few years after the iPod was released. Most computers were

capable of importing songs from CDs and this created a problem with managing those song
capable of importing songs from CDs and this created a problem with managing those song

files effectively.
files effectively.

The most popular desktop music managers were Real Jukebox, Windows Media Player, and Music
The most popular desktop music managers were Real Jukebox, Windows Media Player, and Music

Match. The problem with these applications was that they were not only unappealing and
Match. The problem with these applications was that they were not only unappealing and

complicated, but they throttled things like encode quality and CD burning speed to encourage
complicated, but they throttled things like encode quality and CD burning speed to encourage

users to pay for the software’s pro version. Apple capitalized on these shortcomings by
users to pay for the software’s pro version. Apple capitalized on these shortcomings by

introducing a free, simple, and powerful digital music jukebox called iTunes.
introducing a free, simple, and powerful digital music jukebox called iTunes.

Now I should mention that iTunes, like Siri, wasn’t made by Apple. It was developed by
Now I should mention that iTunes, like Siri, wasn’t made by Apple. It was developed by

Jeff Robbin and Bill Kincaid who had previously worked as Apple software engineers for the
Jeff Robbin and Bill Kincaid who had previously worked as Apple software engineers for the

Copland project but left Apple when the project was cancelled. They went on to create a media
Copland project but left Apple when the project was cancelled. They went on to create a media

player for the Mac in 1998 called SoundJam MP. The media player caught Apple’s eye
player for the Mac in 1998 called SoundJam MP. The media player caught Apple’s eye

and they later acquired SoundJam MP in 2000. Robbin and Kincaid continued to develop their
and they later acquired SoundJam MP in 2000. Robbin and Kincaid continued to develop their

media player as employees of Apple and simplified it's user interface, added the ability to
media player as employees of Apple and simplified it's user interface, added the ability to

burn CDs, and removed its recording feature and skin support. It was then branded as iTunes
burn CDs, and removed its recording feature and skin support. It was then branded as iTunes

and released to the public in 2001.
and released to the public in 2001.

iTunes was advertised as “the world’s best and easiest to use ‘jukebox’ software”
iTunes was advertised as “the world’s best and easiest to use ‘jukebox’ software”

and it was only available on the Mac. Steve Jobs said “Apple has done what Apple does
and it was only available on the Mac. Steve Jobs said “Apple has done what Apple does

best — make complex applications easy, and make them even more powerful in the process.
best — make complex applications easy, and make them even more powerful in the process.

iTunes is miles ahead of every other jukebox application, and we hope its dramatically
iTunes is miles ahead of every other jukebox application, and we hope its dramatically

simpler user interface will bring even more people into the digital music revolution.”
simpler user interface will bring even more people into the digital music revolution.”

Reception to iTunes was positive, with critics praising the ability to turn audio tracks
Reception to iTunes was positive, with critics praising the ability to turn audio tracks

into MP3 files, play Internet radio broadcasts, burn custom CDs, and transfer MP3 files between
into MP3 files, play Internet radio broadcasts, burn custom CDs, and transfer MP3 files between

a Mac and stand-alone music players. But there were some complaints about Apple removing
a Mac and stand-alone music players. But there were some complaints about Apple removing

features that SoundJam MP used to have. Things like custom skins, additional visualizer plugins,
features that SoundJam MP used to have. Things like custom skins, additional visualizer plugins,

and the ability to record sound from a cassette.
and the ability to record sound from a cassette.

The first update to iTunes came just nine months later and included support for the
The first update to iTunes came just nine months later and included support for the

iPod, improvements to CD burning, and a sound equalizer. Apple referred to this update as
iPod, improvements to CD burning, and a sound equalizer. Apple referred to this update as

iTunes 2 but there wasn’t very much excitement surrounding its release since the upgrade
iTunes 2 but there wasn’t very much excitement surrounding its release since the upgrade

didn’t introduce any groundbreaking features. And the same was true for iTunes 3 the following
didn’t introduce any groundbreaking features. And the same was true for iTunes 3 the following

year which featured smart playlists, the “my rating” column, and support for audiobooks
year which featured smart playlists, the “my rating” column, and support for audiobooks

purchased from audible.com.
purchased from audible.com.

But the real exciting features weren’t included until iTunes 4 in 2003. A new user interface
But the real exciting features weren’t included until iTunes 4 in 2003. A new user interface

was added along with the iTunes Music Store which was the main contributor to iTunes’
was added along with the iTunes Music Store which was the main contributor to iTunes’

tremendous success. Now, you may find it odd that it took four versions of iTunes before
tremendous success. Now, you may find it odd that it took four versions of iTunes before

Apple included a music store, but that’s because creating a legal digital music marketplace
Apple included a music store, but that’s because creating a legal digital music marketplace

had never been done before. Apple was writing the book as they went along and initially
had never been done before. Apple was writing the book as they went along and initially

faced stiff opposition from record labels. But before we get into that, let’s understand
faced stiff opposition from record labels. But before we get into that, let’s understand

how Apple recognized the need for a music store to begin with. Initially, the main purpose
how Apple recognized the need for a music store to begin with. Initially, the main purpose

of iTunes was to simply serve as an easy way to rip songs from CDs, mix them into playlists,
of iTunes was to simply serve as an easy way to rip songs from CDs, mix them into playlists,

and burn those playlists to blank disks. This process marked a paradigm shift in the way
and burn those playlists to blank disks. This process marked a paradigm shift in the way

consumers managed music. They were becoming more comfortable with digital song files and
consumers managed music. They were becoming more comfortable with digital song files and

listening to those songs on their MP3 players or iTunes. No longer were consumers using
listening to those songs on their MP3 players or iTunes. No longer were consumers using

CDs to store and listen to their music. The role of CDs, then, was to simply transport
CDs to store and listen to their music. The role of CDs, then, was to simply transport

music from the record store to your computer. Because after the songs were imported to iTunes,
music from the record store to your computer. Because after the songs were imported to iTunes,

the CD no longer had much of a purpose.
the CD no longer had much of a purpose.

This behavior contributed to the growing need for a digital music marketplace. After all,
This behavior contributed to the growing need for a digital music marketplace. After all,

it’d be much easier to purchase digital music directly to your computer and save time
it’d be much easier to purchase digital music directly to your computer and save time

you would’ve spent driving to a record store and then importing all your songs at home.
you would’ve spent driving to a record store and then importing all your songs at home.

Consumers were also annoyed that buying songs individually wasn’t possible. Some solutions
Consumers were also annoyed that buying songs individually wasn’t possible. Some solutions

to this problem did surface, but they weren’t necessarily legal. File sharing applications
to this problem did surface, but they weren’t necessarily legal. File sharing applications

like Napster and LimeWire became quite popular in the early 2000’s since they allowed users
like Napster and LimeWire became quite popular in the early 2000’s since they allowed users

to download individual MP3 files directly to their computer. But because these services
to download individual MP3 files directly to their computer. But because these services

were illegal, the music industry retaliated by trying to shut them down and they were
were illegal, the music industry retaliated by trying to shut them down and they were

successful, but it took many years.
successful, but it took many years.

Throughout this time, digital music downloads developed a bad reputation since it became
Throughout this time, digital music downloads developed a bad reputation since it became

synonymous with piracy. In 2006 “Weird Al” Yankovic even released a parody single titled
synonymous with piracy. In 2006 “Weird Al” Yankovic even released a parody single titled

“Don’t Download This Song.” Who’s title may seem confusing since downloading
“Don’t Download This Song.” Who’s title may seem confusing since downloading

songs today with Spotify and Apple Music is perfectly legal. But these legal music downloading
songs today with Spotify and Apple Music is perfectly legal. But these legal music downloading

services weren’t available 15 years ago. Steve Jobs had an interesting quote about
services weren’t available 15 years ago. Steve Jobs had an interesting quote about

piracy that summed up the situation quite well, he said “We believe that 80% of the
piracy that summed up the situation quite well, he said “We believe that 80% of the

people stealing stuff don’t want to be, there’s just no legal alternative.  So
people stealing stuff don’t want to be, there’s just no legal alternative.  So

we said, ‘Let’s create a legal alternative to this.’ Everybody wins. Music companies
we said, ‘Let’s create a legal alternative to this.’ Everybody wins. Music companies

win. The artists win. Apple wins. And the user wins, because he gets a better service
win. The artists win. Apple wins. And the user wins, because he gets a better service

and doesn’t have to be a thief.”
and doesn’t have to be a thief.”

But the idea of a digital music marketplace wasn’t popular with music executives at
But the idea of a digital music marketplace wasn’t popular with music executives at

the time. And their concerns weren’t necessarily unfounded: They worried about profit margins.
the time. And their concerns weren’t necessarily unfounded: They worried about profit margins.

Why would anyone buy $15 albums if they could just spend a few dollars handpicking their
Why would anyone buy $15 albums if they could just spend a few dollars handpicking their

favorite songs. They worried about piracy. How would they prevent digital song files
favorite songs. They worried about piracy. How would they prevent digital song files

from being illegally resold and distributed? But most of all they worried about losing
from being illegally resold and distributed? But most of all they worried about losing

control of the retail music marketplace. If everyone buys music from the iTunes store
control of the retail music marketplace. If everyone buys music from the iTunes store

than that gives Apple an unprecedented amount of bargaining power over the record labels.
than that gives Apple an unprecedented amount of bargaining power over the record labels.

Power the record executives weren’t willing to give up.
Power the record executives weren’t willing to give up.

But Steve Jobs knew digital sales was the only way forward for the music industry and
But Steve Jobs knew digital sales was the only way forward for the music industry and

he was successful in persuading labels to at least give it a try. This was partly because
he was successful in persuading labels to at least give it a try. This was partly because

of Apple's limited role in the computer industry: Labels saw the Macintosh market—which represented
of Apple's limited role in the computer industry: Labels saw the Macintosh market—which represented

less than 5 percent of the total U.S. computer market--as a small, relatively safe way to
less than 5 percent of the total U.S. computer market--as a small, relatively safe way to

experiment with Jobs' ideas.
experiment with Jobs' ideas.

The iTunes Music Store offered 200,000 songs at its time of release and allowed customers
The iTunes Music Store offered 200,000 songs at its time of release and allowed customers

to quickly find, purchase and download those songs for just 99 cents each, without subscription
to quickly find, purchase and download those songs for just 99 cents each, without subscription

fees. And customers could burn their songs onto an unlimited number of CDs for personal
fees. And customers could burn their songs onto an unlimited number of CDs for personal

use, listen to songs on an unlimited number of iPods, play songs on up to three Mac computers,
use, listen to songs on an unlimited number of iPods, play songs on up to three Mac computers,

and use songs in applications on the Mac like iMovie and iDVD.
and use songs in applications on the Mac like iMovie and iDVD.

iTunes was widely used among Mac users but it didn’t explode in popularity until it
iTunes was widely used among Mac users but it didn’t explode in popularity until it

was released for Windows in October 2003. In just three and a half days after it’s
was released for Windows in October 2003. In just three and a half days after it’s

release, iTunes for Windows was downloaded over a million times and secured iTunes position
release, iTunes for Windows was downloaded over a million times and secured iTunes position

as the number one digital music marketplace in the world. Digital music sales eventually
as the number one digital music marketplace in the world. Digital music sales eventually

exceeded CDs but it’s important to point out that overall music sales began to decline
exceeded CDs but it’s important to point out that overall music sales began to decline

in 2004 and it was due to one factor in particular: The shift from digital music purchases to
in 2004 and it was due to one factor in particular: The shift from digital music purchases to

streaming services like Pandora and YouTube who offered free music streaming with varying
streaming services like Pandora and YouTube who offered free music streaming with varying

feature restrictions and ads that could be removed with a monthly subscription.
feature restrictions and ads that could be removed with a monthly subscription.

iTunes remained successful during this transitional period and received annual updates, but Apple
iTunes remained successful during this transitional period and received annual updates, but Apple

saw the writing on the wall and tried competing with streaming services like Pandora by introducing
saw the writing on the wall and tried competing with streaming services like Pandora by introducing

iTunes Radio in 2013. It experienced mild success but was never able to dominate its
iTunes Radio in 2013. It experienced mild success but was never able to dominate its

competition like the iTunes Music Store had. To make matters worse, a Swedish company called
competition like the iTunes Music Store had. To make matters worse, a Swedish company called

Spotify brought their music streaming service to the US in 2011 and was gaining incredible
Spotify brought their music streaming service to the US in 2011 and was gaining incredible

traction with consumers. Spotify offered on demand music streaming in addition to radio
traction with consumers. Spotify offered on demand music streaming in addition to radio

services and it was supported by ads which made the service free. Although users could
services and it was supported by ads which made the service free. Although users could

pay a $9.99 monthly subscription fee to remove ads and other restrictions.
pay a $9.99 monthly subscription fee to remove ads and other restrictions.

As popularity of Spotify exploded, it marked another paradigm shift in the way consumers
As popularity of Spotify exploded, it marked another paradigm shift in the way consumers

managed their music. Buying songs digitally and syncing them to various devices became
managed their music. Buying songs digitally and syncing them to various devices became

antiquated since consumers could simply download an app and stream any song they’d like from
antiquated since consumers could simply download an app and stream any song they’d like from

any device. Other music streaming services were created to compete with Spotify like
any device. Other music streaming services were created to compete with Spotify like

Tidal and Beats Music, but these services were only able to put a small dent in Spotify’s
Tidal and Beats Music, but these services were only able to put a small dent in Spotify’s

on-demand music streaming marketshare. In 2014 Apple acquired Beats Electronics in a
on-demand music streaming marketshare. In 2014 Apple acquired Beats Electronics in a

$3 billion deal, and brought on its executives Jimmy Iovine and Dr. Dre to help develop Apple’s
$3 billion deal, and brought on its executives Jimmy Iovine and Dr. Dre to help develop Apple’s

own music streaming service called Apple Music which was released in 2015.
own music streaming service called Apple Music which was released in 2015.

Apple Music was integrated with iTunes 12, a controversial decision since iTunes was
Apple Music was integrated with iTunes 12, a controversial decision since iTunes was

already quite bloated and resource-heavy even without the addition of Apple Music. Many
already quite bloated and resource-heavy even without the addition of Apple Music. Many

users felt that, because iTunes needed to be trimmed down, establishing Apple Music
users felt that, because iTunes needed to be trimmed down, establishing Apple Music

as a separate app would be a smarter choice.
as a separate app would be a smarter choice.

But Apple felt differently baked Apple Music right into iTunes. Apple promoted the service
But Apple felt differently baked Apple Music right into iTunes. Apple promoted the service

heavily with various ad campaigns to get it off to a strong start. Reception to Apple
heavily with various ad campaigns to get it off to a strong start. Reception to Apple

Music was mixed, many criticized the user interface for being messy and unintuitive,
Music was mixed, many criticized the user interface for being messy and unintuitive,

while others praised it’s quality playlist curation. In iOS 10, the Music app received
while others praised it’s quality playlist curation. In iOS 10, the Music app received

an updated user interface with less clutter, improved navigation, and a larger emphasis
an updated user interface with less clutter, improved navigation, and a larger emphasis

on users' libraries, but issues with the service persisted. One of Apple Music's features is
on users' libraries, but issues with the service persisted. One of Apple Music's features is

something called iTunes Match, which allows you to upload existing music you already own
something called iTunes Match, which allows you to upload existing music you already own

to your iCloud Music Library so you can share those songs with your other devices. Unfortunately
to your iCloud Music Library so you can share those songs with your other devices. Unfortunately

this featured caused significant issues for some users, like duplicate songs, missing
this featured caused significant issues for some users, like duplicate songs, missing

tracks, and synchronization problems. There were also reports of user-uploaded music being
tracks, and synchronization problems. There were also reports of user-uploaded music being

replaced by versions locked with digital rights management, an issue Apple later fixed.
replaced by versions locked with digital rights management, an issue Apple later fixed.

Despite these hiccups, Apple Music experienced rapid growth after its launch, passing the
Despite these hiccups, Apple Music experienced rapid growth after its launch, passing the

milestone of 10 million subscribers after just six months and 40 million as of April
milestone of 10 million subscribers after just six months and 40 million as of April

2018.
2018.

Today, Apple Music is Spotify’s biggest competitor. And because Apple Music is gaining
Today, Apple Music is Spotify’s biggest competitor. And because Apple Music is gaining

subscribers at a faster rate than Spotify, it’s set to surpass Spotify for the number
subscribers at a faster rate than Spotify, it’s set to surpass Spotify for the number

one spot in summer 2018.
one spot in summer 2018.

Now even though streaming is the most popular way to listen to music, Apple continues to
Now even though streaming is the most popular way to listen to music, Apple continues to

sell music from the iTunes Store, although sales have been declining since 2012. Rumors
sell music from the iTunes Store, although sales have been declining since 2012. Rumors

have been circulating about whether or not Apple will close the iTunes Store in the near
have been circulating about whether or not Apple will close the iTunes Store in the near

future. And although Apple hasn’t made any official announcements on the subject, an
future. And although Apple hasn’t made any official announcements on the subject, an

anonymous source close to Apple said, “keeping the iTunes Store running forever isn’t really
anonymous source close to Apple said, “keeping the iTunes Store running forever isn’t really

on the table anymore. They plan on riding the iTunes Music Store out for the next 3-4
on the table anymore. They plan on riding the iTunes Music Store out for the next 3-4

years, maybe longer. If Jobs was alive, he would have killed it.”
years, maybe longer. If Jobs was alive, he would have killed it.”

The end of the iTunes Music Store may be inevitable, but I don’t see it happening anytime soon.
The end of the iTunes Music Store may be inevitable, but I don’t see it happening anytime soon.

After all, the iTunes Store offers more than just music and as long as customers are buying,
After all, the iTunes Store offers more than just music and as long as customers are buying,

it wouldn’t make much sense to shut it down.
it wouldn’t make much sense to shut it down.

But what do you guys think? Should Apple end the iTunes Music Store in order to focus their
But what do you guys think? Should Apple end the iTunes Music Store in order to focus their

energy on Apple Music? Or is there still a good reason to keep the declining digital
energy on Apple Music? Or is there still a good reason to keep the declining digital

media marketplace alive? Let me know what you think. And if you want to vote for next
media marketplace alive? Let me know what you think. And if you want to vote for next

week’s video topic, don’t forget to subscribe. Thanks for watching, and I’ll see you next
week’s video topic, don’t forget to subscribe. Thanks for watching, and I’ll see you next

time.
time.