Wired:

Much to the chagrin of the Recording Industry Association of America, internet users quickly caught on to digital music as a free alternative to paying for albums. In fear of declining album sales, record labels filed lawsuit after lawsuit against online services Napster and MP3.com for hosting digital music, as well as Diamond Multimedia, a Korean company that released an MP3 player called the Rio. Clearly, for the recording industry, change wasn’t easy.

In stepped Steve Jobs. The Apple CEO harbored a vision in 2002 of an online music store hosted by Apple that would be easy to use, complete in selection and reliable in performance. These factors, Jobs thought, would be enough to convince customers to pay for something they could otherwise obtain for free illegally. The store, then, would enable record labels to compete with pirates rather than pursue a futile attempt to destroy them.