Menu
Matt Damon is Jason Bourne Again

Matt Damon is Jason Bourne Again

Miss America 2015 is Miss New York Kira Kazantsev

Miss America 2015 is Miss New York Kira Kazantsev

Official handset image shows new Windows Phone with 'Windows' branding

Official handset image shows new Windows Phone with 'Windows' branding

Iggy Azalea Sex Tape Controversy Heats Up

Iggy Azalea Sex Tape Controversy Heats Up

Paris Hilton just bought the Cutest and Smallest Dog

Paris Hilton just bought the Cutest and Smallest Dog

Apple Beats Deal Is About Sharing Music

May 9 2014, 6:00am CDT | by

Apple Beats Deal Is About Sharing Music
 
 

YouTube Videos Comments

Full Story

Apple Beats Deal Is About Sharing Music

If the news reports are correct, Andre Young could become a very rich man. Mr. Young is, of course, known as rapper and record producer Dr. Dre, who six years ago co-founded Beats Electronics, now the reported subject of a $3.2 billion purchase by Apple Inc. If true, it would be Apple’s largest acquisition to date, and one that immediately sparked speculation about what Apple would really gain from the purchase. The Financial Times reports the sale could be announced as early as next week.

First, Beats markets a premium line of consumer headphones, earphones and speakers. But more importantly for Apple, the company holds patents on certain software technology, and operates a subscription streaming music service that could help Apple’s iTunes service expand in reach and quality.

The Apple retail stores have been selling the Beats headphones with the “b” logo almost since their invention, and have scored substantial space on the stores’ wall shelving. In fact, according to the privately-held Beats, it has a 51 percent share of the $1 billion premium headphone market (over $100). Beats COO Luke Wood has even claimed the company created the market for premium headphones back in 2008. Some of Beats over-the-ear models are priced at $450, while earphones are priced down to $90.

Beyond the headphones and earbuds, Beats has partnered with Chrysler to offer its technology across select models, including the Fiat line. The company describes it as “a high-definition music experience the way the artist intended.” The technology could dovetail nicely with Apple’s just-introduced CarPlay product and their future plans to become more active in the automotive marketplace.

However, the biggest asset of Beats would be the company’s streaming music service, which offers a much more thorough—and successful—social experience than iTunes. It’s advertised as “The right music for right now,” using a very simple interface crafted especially for the mobile experience. Using the Beats iOS app, the user simply creates a “sentence” explaining where they are, what they’re feeling and who they’re with. Beats then creates a playlist of the appropriate music. There are also additional paths to finding music, including by genre, artist playlist and curator. Once your music is playing, there are additional options to follow artists and explore their work, share playlists and comment on music.

And lastly, and quite frankly, there’s no streaming music service so close to the “the scene” than Beats. Incorporating the Beats technology into iTunes could generate a entirely new list of subscribers for the service, which now has over 800 million accounts.

Interestingly, the Beats music app is available for Android and Windows smartphones, and in a version for desktop computers. It’s not clear if Apple would maintain the apps for the other smartphone brands once the purchase is finalized.

The company has had an on-again, off-again relationship with various investors and funding partners over the years. However, given the size of the reported purchase and Apple’s corporate seriousness, Beats’ financials and ownership must be in-the-clear enough for Apple to act. And Apple’s executives must be thorougly convinced of how Beats’ products will improve iTunes—and their bottom line.

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Apple releases Tool to Remove Free U2 Album
Apple releases Tool to Remove Free U2 Album
This is hilarious. Apple's free gift to all iTunes users was almost a complete PR disaster as many users did not want that present.
 
 
Galaxy Note 4 Screen is the World&#039;s Best
Galaxy Note 4 Screen is the World's Best
Samsung does not have to poke fun at the iPhone 6 to make them look good. Samsung managed to bring with the Galaxy Note 4 the best smartphone screen ever available.
 
 
Walmart Black Friday
Walmart Black Friday
WalMart is easily the largest retailer in the country when it comes to Black Friday, or any time of the year to be honest. Year after year Wal Mart sets new records for their sales as people cram into stores across the...
 
 
Matt Damon is Jason Bourne Again
Matt Damon is Jason Bourne Again
Hollywood can be full of surprises sometimes. Matt Damon is coming back again to play Jason Bourne.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.