The idea of the digital hub quickly came into focus. “I first understood this with the camcorder,” Jobs said. “Using iMovie makes your camcorder ten times more valuable.” Instead of having hundreds of hours of raw footage you would never really sit through, you could edit it on your computer, make elegant dissolves, add music, and roll credits, listing yourself as executive producer. It allowed people to be creative, to express themselves, to make something emotional. “That’s when it hit me that the personal computer was going to morph into something else.”
Jobs had another insight: If the computer served as the hub, it would allow the portable devices to become simpler. A lot of the functions that the devices tried to do, such as editing the video or pictures, they did poorly because they had small screens and could not easily accommodate menus filled with lots of functions. Computers could handle that more easily.
And one more thing . . . What Jobs also saw was that this worked best when everything—the device, computer, software, applications, FireWire—was all tightly integrated. “I became even more of a believer in providing end-to-end solutions,” he recalled.
The beauty of this realization was that there was only one company that was well-positioned to provide such an integrated approach. Microsoft wrote software, Dell and Compaq made hardware, Sony produced a lot of digital devices, Adobe developed a lot of applications. But only Apple did all of these things. “We’re the only company that owns the whole widget—the hardware, the software and the operating system,” he explained to
Apple’s first integrated foray into the digital hub strategy was video. With FireWire, you could get your video onto your Mac, and with iMovie you could edit it into a masterpiece. Then what? You’d want to burn some DVDs so you and your friends could watch it on a TV. “So we spent a lot of time working with the drive manufacturers to get a consumer drive that could burn a DVD,” he said. “We were the first to ever ship that.” As usual Jobs focused on making the product as simple as possible for the user, and this was the key to its success. Mike Evangelist, who worked at Apple on software design, recalled demonstrating to Jobs an early version of the interface. After looking at a bunch of screenshots, Jobs jumped up, grabbed a marker, and drew a simple rectangle on a whiteboard. “Here’s the new application,” he said. “It’s got one window. You drag your video into the window. Then you click the button that says ‘Burn.’ That’s it. That’s what we’re going to make.” Evangelist was dumbfounded, but it led to the simplicity of what became iDVD. Jobs even helped design the “Burn” button icon.
Jobs knew digital photography was also about to explode, so Apple developed ways to make the computer the hub of your photos. But for the first year at least, he took his eye off one really big opportunity. HP and a few others were producing a drive that burned music CDs, but Jobs decreed that Apple should focus on video rather than music. In addition, his angry insistence that the iMac get rid of its tray disk drive and use instead a more elegant slot drive meant that it could not include the first CD burners, which were initially made for the tray format. “We kind of missed the boat on that,” he recalled. “So we needed to catch up real fast.”
The mark of an innovative company is not only that it comes up with new ideas first, but also that it knows how to leapfrog when it finds itself behind.
It didn’t take Jobs long to realize that music was going to be huge. By 2000 people were ripping music onto their computers from CDs, or downloading it from file-sharing services such as Napster, and burning playlists onto their own blank disks. That year the number of blank CDs sold in the United States was 320 million. There were only 281 million people in the country. That meant some people were
Jobs added a CD burner to the iMac, but that wasn’t enough. His goal was to make it simple to transfer music from a CD, manage it on your computer, and then burn playlists. Other companies were already making music-management applications, but they were clunky and complex. One of Jobs’s talents was spotting markets that were filled with second-rate products. He looked at the music apps that were available—including Real Jukebox, Windows Media Player, and one that HP was including with its CD burner—and came to a conclusion: “They were so complicated that only a genius could figure out half of their features.”