July 14, 1995: The MP3 file format receives its official name as the new .bit file extension gets changed to .mp3. The technology allows the compression of a standard CD .wav file to one-tenth its original size, courtesy of some smart algorithms. The format will revolutionize the music industry — and put Apple on the road to world dominance with the iPod.
The MP3 enables easy sharing of music tracks online and makes music more portable than ever. Within a few years, Apple’s iPod will become the world’s best-known MP3 player, quickly capitalizing on the new format.