In October 2001, the music industry was riven by piracy and had no idea how to solve it. Enter Steve Jobs, whose new device created a digital music market – and made Apple into a titan
In 2001, the record business was in freefall due to digital piracy, and the best way out of this accelerating crisis came in the shape of a white device the size of a deck of cards. The iPod, launched 20 years ago this week, was also how Apple’s Steve Jobs was able to prey on a failing business in order to avenge his own past failures – exiled between 1985 and 1997 from the company he co-founded – by turning Apple into the most profitable company in history.
Before the iPod lifeline arrived in October 2001, record labels were in full panic mode. In its annual report for 2001, record company trade body IFPI called it “a turbulent” year, blaming filesharing and CD burning for a revenue slump. Jay Berman was chief exective of IFPI at the time and calls the scale of filesharing then “a crisis of momentous proportions” for record labels. “It really was,” he says, “a foreign invasion.”
