While the deal is an acquihire, Apple reportedly bought Beats because it didn't want to disrupt the music business.
Sources with knowledge of Apple's iTunes strategy said that Apple found it easier to offer a separate music service (Beats Music) while retaining its profiting iTunes business, than damage its existing deals with record labels and artists by turning iTunes into a streaming-only service.
In short, Apple doesn't want to deal with the risks involved in changing its iTunes service. After all, artists and record labels are earning well from downloads every year.
Given the case, Apple could retain iTunes as its milking cow for music downloads while Beats Music, or whatever Apple wishes to call it in the future, will help the company fight rising music streaming services like Spotify and Pandora.
Gene Ryan Briones Gene Ryan Briones (Google+) is a technology journalist with a wide experience in writing about the latest trends in the technology industry, ranging from mobile technology, gadgets and robots, as well as computer hardware and software.
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