Napster was created by Shawn Fanning, an 18-year-old freshman at Northeastern University in Boston. His software was designed so that he and his friends could share their digital music files. The program was officially launched on June 1, 1999.
Word of the Napster program quickly spread, and music fans---some searching for rare out-of-print recordings and others simply intent on gathering free music---swarmed the website. According to the Globe and Mail article "Thank you, Napster," the software had been downloaded more than 2 million times within 6 months of its launch.
As more music became available online for free through Napster, musicians and record companies expressed anger about their loss of compensation. According to CNET's article "Feds Disagree about Napster Controversy," the Justice Department and the U.S. Copyright Office filed legal proceedings against Napster in July 2000, claiming that the program and its users were engaged in massive copyright infringement. Many high-profile artists, including Metallica, Alanis Morissette, Sarah McLachlan, Blink-182 and Garth Brooks urged fans to reject Napster and purchase music through legitimate retailers.
As reported by CNET, Hank Barry, an executive with Hummer Winblad Venture Partners in San Francisco, invested in $13 million in 2000 in the Napster product. He immediately met with music industry personnel to hammer out a deal to allow Napster to distribute their music. No deal was reached. Napster was bought by Roxio and relaunched in 2003, not as a file-sharing site, but as a retail music distributor.
Napster is recognized as the catalyst that led to the creation of the digital music industry. Steve Jobs of the Apple Corporation, creators of the iPod mp3 player, used the Napster concept to create iTunes, the most successful retail digital music store. Other digital music distributors that later emerged include Rhapsody and Zune. As of 2009, Napster continues to thrive as a legal digital music source.