iPod Innovation
Tony Fadell, former employee of General Magic and Phillips, envisioned a brand new MP3 player. Unlike the bulky flash memory-based MP3 players from Rio and other companies, Fadell wanted to deliver a small hard drive-based player that was linked with a content delivery system where users could legally obtain and download music. The first company he pitched it to was Real Networks (in 2000), where the CEO, Rob Glaser, was already in control of a large content delivery system through Real's premium radio and television channels.
Real could no rationalize going through the trouble of releasing an accessory to their already profitable system, so they would be caught off guard when the iTunes Music Store was opened. Fadell also approached Phillips, which also rebuffed him.
