Napster Is Released.

In the 1990’s, as the technology surrounding the Internet and the World Wide Web became more sophisticated and accessible, the possibilities of the digital exchange of music expanded. The MP3 format, first devised in 1987, could compress a song into a small digital file with little noticeable decline in sound quality. As the Internet became more popular, many people in the music and technology industries were keenly aware of the potential not only for shopping for music online but also for downloading MP3 files from online sources. However, the mainstream recording industry—the five major record labels, EMI, Sony, BMG, Universal, and Warner Bros.—were slow to seize this opportunity, and many early online music sites and programs, such as MP3.com and LiquidAudio.com, were difficult to use and had only limited success.