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Apple Announces $3 Billion Beats Acquisition, Jimmy Iovine and Dr. Dre Joining the Company
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3.2 billion was the number the media put out to the public. We all know the media doesnt exaggerate.
It looks like they photoshopped Tim's face onto someone else's head. Maybe he couldn't make the photoshoot.
Can you explain how it's good? Practically any streaming music service ends up playing the same thing after so long. The iTunes Radio/iOS 7 Radio is the biggest offender of this that I've come across.
I made an account with them to link up with my Sonos system (deleted the app right after), so I don't know if it's any different, but the insane amount of sub-genres/playlists is incredibly overwhelming.
Maybe Apple will use Beats to create a downmarket sub-brand. Keep Apple as the premium brand but use Beats brand to better penetrate emerging markets. This downmarket brand could be more colorful, more focused on music. Design coordinated headphones and smartphones/iPods. Maybe use Beats to bring an updated Classic iPod to market that plays high quality music and pare it with audiophile quality headphones.
I don't like this deal but I think I'd hate it less if Apple used it as a way to go downmarket and keep the Apple brand as a premium brand.
You mean not having a streaming service sooner wasnt a HUGE mistake?
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Or the media was exaggerating the price or we dont understand all of the terms....
Its been quite some years since Apple has made as major a move as big as this that leaves me quite as puzzled.
I've read all the reasons put forth for this acquisition, mainly involving streaming and the acquisition of the unique talents of Dr Dre and Jimmy Iovine. (Maybe he'll change it to iOvine now?)
I'm always concerned when a big part of an acquisition has to do with talent from the acquired company. And in this case, I'd like to know more about the forward-looking incentives for Dre and Iovine to make a difference at Apple. From the sound of things, they'll each be walking into Apple with the best part of a billion dollars. I assume Apple has them under an employment contract/non-compete. But if you've already got a billion bucks - how hard are you going to struggle to earn an extra measly ten million or so? I'm also concerned about how major players like Dre and Iovine are going to deal with having an actual boss like Eddy Cue. I'll assume they aren't going to have to fill out time sheets, but still..
Streaming subscriptions: I'll just say that I'm skeptical this will ever be a multi-billion business. I think the pool of people, worldwide, who are willing and able to budget ~ $100 for an annual music subscription is probably relatively small. Maybe Apple has some plan to leverage a Beats subscription to drive iPhone sales, or carrier partnerships. But so far no one has really made streaming music pay - and they've been trying since the days of Zune.
I'm not sure - long term - how the Beats Headphone hardware business will fit in with the Johnny Ive design philosophy. Obviously improving the earbuds that come with iPods and iPhones would be nice. But where then is the incentive to buy better hardware later on?
Lastly, this acquisition comes at an odd point in Apple's music business. iPod sales have been declining for several years now; and iTunes music business has long since been overshadowed by the App store. I guess my takeaway is that Apple is planning on using an upgraded iPhone/iPod/iMac music experience to drive growth in those businesses - rather than simply expecting Beats Hardware and Streaming to become major profit center in their own right.
Apple has a great management team, and Dre and Iovine are highly talented players. I just hope it works out they way they think it is going to.
I've read all the reasons put forth for this acquisition, mainly involving streaming and the acquisition of the unique talents of Dr Dre and Jimmy Iovine. (Maybe he'll change it to iOvine now?)
I'm always concerned when a big part of an acquisition has to do with talent from the acquired company. And in this case, I'd like to know more about the forward-looking incentives for Dre and Iovine to make a difference at Apple. From the sound of things, they'll each be walking into Apple with the best part of a billion dollars. I assume Apple has them under an employment contract/non-compete. But if you've already got a billion bucks - how hard are you going to struggle to earn an extra measly ten million or so? I'm also concerned about how major players like Dre and Iovine are going to deal with having an actual boss like Eddy Cue. I'll assume they aren't going to have to fill out time sheets, but still..
Streaming subscriptions: I'll just say that I'm skeptical this will ever be a multi-billion business. I think the pool of people, worldwide, who are willing and able to budget ~ $100 for an annual music subscription is probably relatively small. Maybe Apple has some plan to leverage a Beats subscription to drive iPhone sales, or carrier partnerships. But so far no one has really made streaming music pay - and they've been trying since the days of Zune.
I'm not sure - long term - how the Beats Headphone hardware business will fit in with the Johnny Ive design philosophy. Obviously improving the earbuds that come with iPods and iPhones would be nice. But where then is the incentive to buy better hardware later on?
Lastly, this acquisition comes at an odd point in Apple's music business. iPod sales have been declining for several years now; and iTunes music business has long since been overshadowed by the App store. I guess my takeaway is that Apple is planning on using an upgraded iPhone/iPod/iMac music experience to drive growth in those businesses - rather than simply expecting Beats Hardware and Streaming to become major profit center in their own right.
Apple has a great management team, and Dre and Iovine are highly talented players. I just hope it works out they way they think it is going to.
Uhm, that was the point I was trying to make. Neither i NOR YOU know the deal from an in-person, I-was-there perspective. Though there is a lot of written history, both by biographers and by the people themselves, about past deals and what was done, which would suggest that beats and Apple could make a good pair. Anyone can read up on this stuff. It's not top secret.
Uhm, that was actually my point. I see no problem with the beats acquisition and I think it's a step forward for Apple, AND a potential step forward for Beats, who needs to do better with the audio performance of their products. How is that racism?
Did you actually READ my posts? Apparently not. And I demand an apology for being called racist.
It was obvious. Unfortunately for you though, your "sarcasm" was in fact, something you really should be doing.
I hope you are correct and that I am wrong. But I just don't see Beats adding any value to Apple in the long run. I just hope they scrap what Beats has produced so far, add quality to an inferior product and jazz up the design to look more pleasing. The teens who buy Beats products will soon wise up and realize that their impulse purchase of Beats headphones as a fashion statement and cool factor will soon wear off.
Beats electronics has 60% of the headphone market. 60%!!!
Am I to believe that 60% of the people who buy headphones are ghetto? Or is it more likely you are just a misinformed, narrow minded person who will overlook actual facts to your own beliefs?
Yeah, but that's only in U.S. In Europe that is not the case.
Europeans are not also so into Hip Hop music and so bass oriented Beats are horrible for more dynamic sounding traditonal music.
It was obvious. Unfortunately for you though, your "sarcasm" was in fact, something you really should be doing.
So, you still can't distinguish the difference. Ok, no point in continuing.
check out this girl from london using a macbook and beats while making eminem covers:
... and i'm not from europe- only been there once.. but if you're saying europeans aren't into hip hop or especially bass oriented music then i think you're out of touch.
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not sure
I don't think this is truly correct. The numbers thrown around were 59% of the PREMIUM headphone market, which has a market pricing of 150$+ and above. Some historical numbers around overall marketshare were in the 35-40% range and that was all by sales revenue, not volume.
I don't think this is truly correct. The numbers thrown around were 59% of the PREMIUM headphone market, which has a market pricing of 150$+ and above. Some historical numbers around overall marketshare were in the 35-40% range and that was all by sales revenue, not volume.
He's about outta touch as the people on Macrumors claiming only ghetto people buy Beats in ghetto area's they drive through.
When in fact I see all sorts of different types of people wearing Beats head phones. Just like all sorts of people like buy Apple products. They still don't understand that the majority of hip hop purchasers are not from the ghetto and it has a universal appeal.
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This is the garbage that should be driven off this site. When you cannot question this purchase with out being accused of being racists, it's time to pack everything up because the PC morons have won.
Yup, exactly. To go off my last post put the company that beats owned and now apple into the mix (topspin media) and you have some interesting things that can come.
Dub Step & Techno. I'm sure that's pretty big in Europe.
Honestly I bet the majority of people who rip on Beats if given a blind test couldn't tell the difference in Beats vs some other headphone, not enough to say this one is garbage vs this one is good sounding.
Does buying Beats keep HTC or other computers from using BEATS in their devices or is there a license fee that will have to be paid to Apple now.
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Outliers ≠ the norm.
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You understand not EVERYTHING is a question of money, yes?
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Stop projecting.