too expressed surprise that Jobs had been able to convince the music companies to go along with
his store. “This is very strange to me. The music companies’ own operations offer a service that is
truly unfriendly to the user. Somehow they decide to give Apple the ability to do something pretty
good.”
Gates also found it strange that no one else had created a service that allowed people to buy
songs rather than subscribe on a monthly basis. “I am not saying
this strangeness means we
messed up—at least if we did, so did Real and Pressplay and MusicNet and basically everyone
else,” he wrote. “Now that Jobs has done it we need to move fast to get something where the user
interface and Rights are as good. . . . I think we need some plan to prove that, even though Jobs
has us a bit flat footed again, we can move quick and both match and do stuff better.” It was an
astonishing private admission: Microsoft had again been caught flat-footed, and it would again try
to catch up by copying Apple. But like Sony, Microsoft
could never make it happen, even after
Jobs showed the way.
Instead Apple continued to smoke Microsoft in the way that Cole had predicted: It ported the
iTunes software and store to Windows. But that took some internal agonizing. First, Jobs and his
team had to decide whether they wanted the iPod to work with Windows computers. Jobs was
initially opposed. “By keeping the iPod for Mac only, it was driving the sales of Macs even more
than we expected,” he recalled. But lined up against him were all four of his top executives:
Schiller, Rubinstein, Robbin, and Fadell. It was an argument about what the future of Apple
should be. “We felt we should be in the music player business,
not just in the Mac business,” said
Schiller.
Jobs always wanted Apple to create its own unified utopia, a magical walled garden where
hardware and software and peripheral devices worked well together to create a great experience,
and where the success of one product drove sales of all the companions. Now he was facing
pressure to have his hottest new product work with Windows machines, and it went against his
nature. “It was a really big argument for months,” Jobs recalled, “me against everyone else.” At
one point he declared that Windows users would get to use iPods “over my dead body.” But still
his team kept pushing. “This
needs
to get to the PC,” said Fadell.
Finally
Jobs declared, “Until you can prove to me that it will make business sense, I’m not
going to do it.” That was actually his way of backing down. If you put aside emotion and dogma,
it was easy to prove that it made business sense to allow Windows users to buy iPods. Experts
were called in, sales scenarios developed, and everyone concluded this would bring in more
profits. “We developed a spreadsheet,” said Schiller. “Under all scenarios, there was no amount of
cannibalization of Mac sales that would outweigh the sales of iPods.” Jobs was sometimes willing
to
surrender, despite his reputation, but he never won any awards for gracious concession
speeches. “Screw it,” he said at one meeting where they showed him the analysis. “I’m sick of
listening to you assholes. Go do whatever the hell you want.”
That left another question: When Apple allowed the iPod to be compatible with Windows
machines, should it also create a version of iTunes to serve as the music-management software for
those Windows users? As usual, Jobs believed the hardware and software should go together: The
user experience depended on the iPod working in complete sync (so to speak) with iTunes
software on the computer. Schiller was opposed. “I thought that was crazy, since we don’t make
Windows software,” Schiller recalled. “But Steve kept arguing, ‘If we’re going to do it, we should
do it right.’”
Schiller prevailed at first. Apple decided to allow the iPod to
work with Windows by using
software from MusicMatch, an outside company. But the software was so clunky that it proved
Jobs’s point, and Apple embarked on a fast-track effort to produce iTunes for Windows. Jobs
recalled:
To make the iPod work on PCs, we initially partnered with another company that had a jukebox, gave
them the secret sauce to connect to the iPod, and they did a crappy job. That was the worst of all worlds,
because this other company was controlling a big piece of the user experience. So we lived with this
crappy outside jukebox for about six months, and then we finally got iTunes written for Windows. In
the end, you just don’t want someone else to control a big part of the user experience. People may
disagree with me, but I am pretty consistent about that.
Porting iTunes to Windows meant going back to all of the music companies—which had made
deals to be in iTunes based on the assurance that it would be for
only the small universe of
Macintosh users—and negotiate again. Sony was especially resistant. Andy Lack thought it
another example of Jobs changing the terms after a deal was done. It was. But by then the other
labels were happy about how the iTunes Store was working and went along, so Sony was forced to
capitulate.
Jobs announced the launch of iTunes for Windows in October 2003. “Here’s a feature that
people thought we’d never add until this happened,” he said, waving his hand at the giant screen
behind him. “Hell froze over,” proclaimed the slide. The show included iChat appearances and
videos from Mick Jagger, Dr. Dre, and Bono. “It’s a very cool
thing for musicians and music,”
Bono said of the iPod and iTunes. “That’s why I’m here to kiss the corporate ass. I don’t kiss
everybody’s.”
Jobs was never prone to understatement. To the cheers of the crowd, he declared, “iTunes for
Windows is probably the best Windows app ever written.”
Microsoft was not grateful. “They’re pursuing the same strategy that they pursued in the PC
business, controlling both the hardware and software,” Bill Gates told
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