Steve Jobs' Days At Pixar Helped Him Negotiate Deals For iCloud

Steve Jobs

Photo: Dan Frommer, Business Insider

Steve Jobs’ experience working with Hollywood as co-founder of Pixar provided key insights that helped Apple forge deals for iCloud, which could see his company dominate the music streaming space.According to CNN, Jobs’ understanding of the content creation side of the business may have been essential when negotiating the Match deal, which lets users stream any song file they own, legal or not, to multiple devices without first uploading it.

“One of the things I learned at Pixar is the technology industries and the content industries do not understand each other,” said Jobs in an interview at the AllThingsD Conference in 2003. He noted that neither side understood the creative nature of the others’ work.

Jobs used his insights into both sides to convince the major labels to licence their content to the iTunes store, which eventually led to Apple becoming the largest distributor of music in the U.S.

The company displayed the same savvy in negotiating the licensing for Match. Both Amazon and Google launched music streaming offerings this year, and both drew ire from the music labels for going it alone.

Apple took the time to hash out the licensing agreements necessary for Match, and the result is a streaming offering that is massively more usable than the competitions’ for people with large music collections.

The most amazing thing about Match is that Apple effectively convinced the music labels to grant amnesty to all the users who have illegal music in their collection. Those songs, along with songs ripped from owned CDs, will stream just like tracks purchased in the iTunes store or elsewhere.

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