by Buffy Cranford

Created on: December 14, 2009   Last Updated: March 19, 2010

If the music video killed the radio star, the iPod has demolished the CD industry. With a record-breaking fourth quarter, and top rewards from CNET and Time Magazine for the innovative iPod Touch, Apple continued its rule as the king of digital music distribution in 2009. However, researchers and executives in the music industry have wondered if the Apple and the iPod have changed the music industry for better or for worse.  

Although Apple and its iPod were scrutinized initially, digital downloads were available years before the iPod. Downloadable music gurus experienced a few blissful years of free Napster downloads from 1999 to 2001. In a few short hours you could triple your music collection and create CDs and violate the copyrights of record companies. The entire music industry lost millions of dollars, and the future of album sales was in jeopardy.

Best Buy now owns Napster, but Apple took notice of the power and popularity of downloading music with a few mouse clicks. Always on the brink of inventing a new technology, Apple tapped into the growing popularity of the downloadable music market and delivered the iPod in 2001. Artists and record companies found an avenue for securely selling digital singles and albums, and with its user-friendly interface, Apple and the iTunes store changed the face of the music industry for the better. Although music sharing sites continue to pop up and disgust artists and music retailers, consumers who want legal music downloads flock to the iTunes Music Store with their iPods and MP3 players.

Initially, musicians were weary of the iTunes phenomena, but eventually, artists with Universal, Sony BMG, Warner, and EMI were hitting the iTunes airwaves. Even Kid Rock, who refused to let Apple sell his records a year ago, now has a plethora of singles on iTunes. Full album sales are declining, but consumers are purchasing plenty of singles, music videos, and renting movies to watch on the iPod. For artists, Apple and the iPod may have initially hindered the musical distribution of CDs, but new artists such as Katy Perry have found success in singles purchases. According to Apple, there were over six billion songs sold on iTunes as of January 2009. Even during this tough economic time period, artists found success as consumers purchased singles they could afford rather than dropping $12 to $17 on an entire CD.

Apple was faced with minor competition from Amazon Music Downloads and made some adjustments to the iTunes library

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