That July, Sony appointed a veteran of the music industry, Jay Samit,
to create its own iTunes-like service, called Sony Connect,
which would sell songs online and allow them to play on Sony's portable music devices.
"The move was immediately understood as a way to unite the sometimes conflicting electronics and content divisions," the New York Times reported.
"That internal battle was seen by many as the reason Sony,
the inventor of the Walkman and the biggest player in the portable audio market, was being trounced by Apple."
Sony Connect launched in May 2004. It lasted just over three years before Sony shut it down.
Microsoft was willing to license its Windows Media software and digital rights format to other companies,
just as it had licensed out its operating system in the 1980s.
Jobs, on the other hand, would not license out Apple's FairPlay to other device makers; it worked only on an iPod.
Nor would he allow other online stores to sell songs for use on iPods.
A variety of experts said this would eventually cause Apple to lose market share,
as it did in the computer wars of the 1980s.
"If Apple continues to rely on a proprietary architecture,"
the Harvard Business School professor Clayton Christensen told Wired, "the iPod will likely become a niche product."
(Other than in this case, Christensen was one of the world's most insightful business analysts,
and Jobs was deeply influenced by his book The Innovator's Dilemma.)
Bill Gates made the same argument. "There's nothing unique about music," he said. "This story has played out on the PC."