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 Time.
"We can take full responsibility for the user experience. We can do things that the other guys can't do."
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 alot 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.