How Music Helped Apple Become the Most Valuable Company in the World
Overview
Podcast Episode titled "How Music Helped Apple Become the Most Valuable Company in the World" by Dan Runcie.
Discusses Apple's influence and role in the music industry from iPods to AirPods.
Guest: Zack O'Malley Greenburg.
Key Highlights
Steve Jobs' Comeback and Music's Role
In 1997, Steve Jobs returned to Apple with the company in financial distress.
Goals: Improve software and simplify product lines.
Launched Mac OS X and acquired SoundJam MP, which became iTunes in 2001.
iTunes paved the way for the iPod, which debuted the same year.
iPod initially skeptical, but successful when launched for PC users in 2003 along with the iTunes Music Store.
Music as a Loss Leader
Music industry struggled due to the internet; Apple offered a solution.
iTunes unbundled albums to sell individual songs, initially resisted by the music industry.
Transition to music as a loss leader: iPod sales outpaced iTunes Music Store sales.
iTunes and music drove sales of Apple hardware like iPods and iPhones.
Goldman Sachs 2023 report: Apple Music has 102 million subscribers; generates significant revenue, but less than AirPod sales.
U2's Partnership with Apple
U2 sought to integrate with Apple's brand without cash in exchange for being in iPod commercials and proposed stock compensation, which was denied by Jobs.
Special red and black U2 iPod was eventually launched.
U2's "Songs of Innocence" album distributed freely in 2014 was a PR blunder, where the album appeared on all iPhones without consent; referred to by Tim Cook as an experimental misstep.
Additional Topics Discussed
Steve Jobs' aversion to music streaming.
Transition through Beats Music to Apple Music.
iPod's influence as a foundation for iPhone development.
Apple's ongoing influence in the music industry.
Conclusion
Apple's strategic use of music to drive sales and influence technology adoption.
The complex relationship between tech companies and the music industry.
Presenter
Dan Runcie, Founder of Trapital, provides insights into how music intersects with business and technology.
Call to Action
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