iTunes Store Turns 10

On April 28, 2003, Apple launched the iTunes Music Store. In their original press release, they called it 'revolutionary,' in typical PR fashion. As the service reaches its 10th anniversary, it seems they were actually correct. From The Verge: 'At launch, it was Mac-only and offered a relatively tiny catalog: 200,000 songs (it currently has 26 million). But it did have the support of the major record labels of the day: Universal, EMI, Warner, Sony, and BMG. The partnerships were key to helping Apple take control of music distribution — without the songs, the iPod was a nicely designed but empty box. ... Jobs certainly had his challenges. Vidich said he's the one who suggested that iTunes charge 99 cents per track and he remembers Jobs nearly hugged him. At the time, Sony Music execs wanted to charge more than $3 a track, according to Vidich. No doubt a $3 song price would have tied an anchor around iTunes' neck, stifling growth. 99 cents, on the other hand, was below the sub-$1 psychological barrier — and has continued to be an important price point for not only music but the wide swath of 99-cent iOS apps in the store. ... Apple bet that the majority of consumers wouldn't have an issue with its lock-in tactics, and it bet correctly.

http://apple.slashdot.org/story/13/0...store-turns-10