Beats Music on iPad and iPhone

The genesis of the Apple + Beats tie-up: Beats Music

With Apple's rumored multi-billion-dollar purchase of Beats still leading to scratching of heads, we might have an idea of what Tim Cook and company are after in the purchase: Beats Music. Of course, there's nothing official about any of it yet. Apple's own streaming iTunes Radio services hasn't taken off as well as Apple or the music industry would have liked, apparently they saw something they liked in Beats Music, something worth a $3.2 billion acquisition.

According to Bloomberg, it's exactly Beats Music that pulled the two together:

Apple became interested in doing a deal with Beats after executives were impressed by Beats Music, the online music streaming service unveiled earlier this year, which was rapidly converting users into paying subscribers, said a person with knowledge of the talks, who asked not to be identified because the discussions are private.

It's worth noting that while Beats might be impressive as a service, it's not yet found success in gaining a mass of users (most reports peg it at well under half a million). Though one could certainly say that being the lynchpin in a $3.2 billion purchase would be considered a success.

The successful half of Beats is their headphones business, which has been booming and profitable for several years. Speculation has mounted about what Apple would do with Beats, as Apple hasn't historically held subsidiary companies after acquisition (the primary exception being FileMaker. Bloomberg isn't clear on the fate of Beats' headphone business, but it seems it will remain a separate entity from Apple, though the parent company will lend some of their famous design expertise to Beats' future products.

Source: Bloomberg

Derek Kessler

Managing Editor of Mobile Nations, Army musician, armchair pundit, and professional ranter.

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There are 2 comments. Add yours.

stevesup says:

Forget where I read this yesterday ... something on affordable luxuries generally. Got me wondering Is Cook recommissioning Apple from "computers for the rest of us" to "the best in tech for the rest of us"?

The first mission statement has held up for thirty years. Altho' Apple dropped the word computers from its name years ago, its mainstay products are still computers ... traditional computers, with storage, processors, and screens.

New tech might not have storage, processors, or screens. Just sensors (nearables) connected to servers (farables) through hubs (hubbles), that is, phones and tablets.

The corollary would be "the best in tech for the rest of us ... us including China." Sounds like China is a big part of Apple-think these days.

Not cheap tech. It's about great tech. The best tech ... for the rest. The purveyors of cheap tech did not and never would create the iPhone, the Mac, or the iPad. Cheap is a good thing too. But cheap doesn't get you great, whereas as great engenders cheap.

Ah. Here's what's in my gut: As we watch the world shift toward inequality and as the wealthy run the show more and more, great, simple, useful, and affordable tech is kinda subversive, yes? The iPhone proves that great does good all around.

kazn3r says:

Being an Audiophile, I'd never buy a pair of Beats, but I can understand if Apple saw Beats Music heading in to a direction where they'd be direct competitors of, let's say, Apple's iTunes Radio.

The only reason Beats are popular is because they marketed and got the "right" people hooked--not to mention the "awe" the provided with the "extra" "bass" they provide through the headphones.
(it's my own fault for being an audiophile, I guess. But everyone is just so...ugh....)

The reason Apple is popular is because they make a great product.