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Beats Co-Founders Dr. Dre and Jimmy Iovine Expected to Take on Senior Roles at Apple Following Acquisition
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oh brother, the self-righteousness. Jobs was a deadbeat dad to his daughter for a long time. I guess he shouldn't be as respected as he is either.
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Diddy maybe, but Jay-Z has Beyonce:
You can't figure it out by yourself? There are lots of possibilities and some are explained in this article:
Dre and expecially Levine know how to make deals with the music industry, TV, etc.;
Cool factor to revitalize the ipod brand;
The streaming service.
Is it worth it that much? I don't know. While they certainly were selling a LOT and will start to pay themselves since day 1 (this isn't a stupid 3.2 billion for a thermostat, or 19 billion for a messaging app), I would like to see Apple investing in something else.
This was a 0 risk move. Beats already made billions $, will keep making more, what can go wrong in that department? Nothing.
Still dreaming about Tesla, wolfram alpha, square and selling power.
Beats acquired MOG, which was the best music streaming service, IMO, for about $14 million in 2012.
Apple is paying a lot, presumably for the electronics part of the business, possibly for some intellectual property as well. Not sure the valuation is all that sane, but then a lot of the recent valuations of stuff like Nest and Whatsup are in the insane realm, as well. It's other people's (dumb) money, so as long as the dealers get their fees and management their bonuses, things will be just peachy for the direct participants.
Funny enough, HTC is probably getting a nice return on their $300 million investment in Beats
I hope Apple builds on MOG and makes it even better.
That is what is most concerning about this situation if we can believe these stories.
Beats, a much smaller company than Apple had the initiative and vision to buy MOG for 14M so they could compete with Spotify. Apple on the other hand has done nothing in the space until now where they might buy Beats for billions in order to get to what is now Beats Music.
I own a recording studio and listen on speakers that cost $3k a piece. I also listen on a pair of AKG headphones that cost $150 and sound better than anything Beats will ever brand. Beats preys on the ignorance of their market, just like Apple.
You wouldn't. And because you wouldnt you wouldnt listen to the rap channel.
For starters, it isn't about the headphones at all. It's more about image, deals, influence and to revitalize the "music" arm of Apple.
Second of all, this is a huge profitable company that will pay itself soon.
Then, Tim has been saying in a long time that price is irrelevant if they find a great deal.
This could be another big push for the ipod, with Apple tech and design to make beats headphones way better, and beats image, brand, deals and cachet to make the ipod better.
Looks nice
A comment that, thus far, has been so typical of this thread. Black guy called 'Dr Dre' = Rap...
There is a difference between being an artist and being a producer. Fortunately for Dre, he's had a hand in both across a wide spectrum of music genres.
What you're obviously missing is that "all Apple has to do is create their own subscription service" is apparently easier said than done. Apple has been taking a huge cut from the music industry for a decade+ and record execs are aware of Apple's power when they're the sole gatekeeper. Negotiations with Apple are probably handled differently than any other company so that they don't become Apple's hostage. With this acquisition, Apple gets a robust streaming platform that is already built AND they get Jimmy Iovine and Dr Dre on their side, potentially acting as trusted liaisons between Cupertino and the powers that be in the music business. That is something Spotify, a Swedish based company, cannot provide and that doesn't even factor in that Spotify's streaming agreements don't transfer to an acquiring company or the fact that Beats has also influenced fashion and established a cool factor among millions of American youth.
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Well there's your problem right there. You have all that crap getting in the way of your platinum record music. Oh wait, you don't have a platinum?.... Maybe your equipment isn't that great and/or your ears aren't working too well. I don't hear your songs on the radio? Oh, right, you probably don't like the radio. It's for social conformists, right?
Beats aren't for the studio!! That doesn't mean the quality is horrific. Im not taking a Lexusto a drag-race, but I'll drive it everywhere else, because it's comfortable and it looks good.
There will be beats logo on apple products, otherwise it makes no sense to buy the brand. If they want to target that demographic, I'd imagine the iPod/iphone including "beats" audio profile etc.
This is such a stupid buyout.
If you wanted a streaming service, buy the best streaming service out there, spotify.
If you wanted iovine, head hunt him.
If you wanted headphones, I can't imagine Apple wanting this.
Is this Apple 2014 and beyond? We can't innovate so we're going to buy brands? Steve Jobs bought companies to build his components, not to buy brands.
This is such a stupid buyout.
If you wanted a streaming service, buy the best streaming service out there, spotify.
If you wanted iovine, head hunt him.
If you wanted headphones, I can't imagine Apple wanting this.
Is this Apple 2014 and beyond? We can't innovate so we're going to buy brands? Steve Jobs bought companies to build his components, not to buy brands.
So, after reading all this, I've lost all hope in Apple.
Apple's moving in the "luxury goods" and not technology-heavy direction. They're buying up brands and putting BS artists into senior positions all the while their competitors are buying up technology companies.
Google and Facebook have bought messaging, communication, robotics and artificial intelligence companies (you know, stuff that will be important in the future) and Tim Cook is buying urban brands.
Well, it was fun while it lasted. Apple's now on the same trajectory as Microsoft was in 2000s when Bill Gates left and salesman Ballmer became CEO.
You're hilarious. "Urban brands"...smh. Apple will be just fine without you and will probably please millions of people with a better music consumption experience than the dinosaur that iTunes is now over the next few years as a result of this.
But I don't always have access to a good audio system. That's the point! Sometimes I'm face to face with a random Bluetooth speaker, or a friends car system. With a graphic EQ any subpar audio system can be made to sound acceptable. If you don't want to use it, you don't have to! But right now apple forbids third party access to develop a global EQ. I've already decided if iOS 8 still has no global EQ I'm going right back to android. It is what I miss most. I've had good EQ on my phones since Windows Mobile in 2007, SEVEN YEARS AGO. I had thought that Apple was the darling of audiophiles when I jumped ship to Apple and was pretty shocked at how bad Apple actually does audio compared to Android.
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Oh yea, BTW, as a musician my entire life (violinist) I'd guess that maybe I have a bit of an ear for music.
You mean this Beyonce?
LOL, yeah thats the one. Hey we all take bad pictures sometimes....
Well, you could argue that the model you cited does constitute "superior business acumen" since it worked brilliantly to the point that people in positions to know better describe Beats as "dominating the premium headphone market" (instead the "high-priced headphones market").
*shaking head* (at both what peeps dunno about the physics of current sound production tech and - more - the idea that the "Beats sound" would be an improvement)
About this new Apple you may be right. About all of us. We're way past WWSJD territory now....
I'll bet you the pixels this post occupies...
There's a good chance they're gonna get negative value. Apple runs around industry leading 40% margins (give or take), spend a relatively low %age of rev on R&D and get slammed for selling over-priced goods that aren't always best of class in every respect they claim. Except maybe being "for the colorful."
Beats (according to a cable net news report I saw) charges $200 for headphones with a $14 BOM, some over-equalized bass and pics of celebrities wearing 'em.
Is that the aura they want to cultivate around the company??
In other boutique branding news, "No highs, no lows, it must be Bose."
Yuppers. As I said above.
Dr Dre as a executive of Apple with his colorful street sense language I'm sure will bring many more customers into the Apple ecosystem.
Actually it might. I liked early hip-hop a lot, still listen to lots of trip-hop (e.g., Massive Attack), and while not a hard-core rap fan have lots of friends whose taste I otherwise share who are massively into it.
And Apple's market share in demos targeted by Dre and Beats is well below its overall share in the country, so a market of opportunity for sure.
Interesting that in that link (very well written as in drolly realistic to the point it sounds like real commentary on what's actually [presumably] happening), even the spoofer couldn't bring himself to say Apple was actually after the hardware side, and that he undershot the acquisition price...
They are buying Beats for the streaming music service, to get these two guys to work for Apple and for headphone design and manufacturing facilities. A hope like anything Apple improves the audio quality of the headphones.
One thing I want Apple to do with the headphone is build the iPod into the headphone and elinate the WIRE. I hate wires. Put the flash memory inside the headphone.
Also, I think Apple is going to get into creating "content" Perhaps their own record label? That would be the way to get the best deals in the future
One thing I want Apple to do with the headphone is build the iPod into the headphone and elinate the WIRE. I hate wires. Put the flash memory inside the headphone.
Also, I think Apple is going to get into creating "content" Perhaps their own record label? That would be the way to get the best deals in the future
Okay, ChrisA (and possible others) just suggested the same thing I was thinking. But, I'll go ahead and post my thoughts anyway.
Perhaps Apple is considering getting into the music production business. Bypass the traditional studios and have the artists go directly through Apple and into the iTunes Store. It might not happen immediately (or at all), but maybe they want Jimmy Iovine and Dr. Dre to build that kind of business. In the meantime they get the subscription music service and some new marketing possibilities.
This might be Apple's first step into media production. Following that they could expand into video (movies, episodic content) since they may want to try and break the lock in those areas that is currently being held by the traditional content providers and distributors. In that sense, they would be following Amazon and Netflix, probably their two biggest competitors in the media streaming business.
Perhaps Apple is considering getting into the music production business. Bypass the traditional studios and have the artists go directly through Apple and into the iTunes Store. It might not happen immediately (or at all), but maybe they want Jimmy Iovine and Dr. Dre to build that kind of business. In the meantime they get the subscription music service and some new marketing possibilities.
This might be Apple's first step into media production. Following that they could expand into video (movies, episodic content) since they may want to try and break the lock in those areas that is currently being held by the traditional content providers and distributors. In that sense, they would be following Amazon and Netflix, probably their two biggest competitors in the media streaming business.
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It is (seemingly) a lot of money for what Apple (seemingly) is getting. Mostly I find it odd that apple feels the need for drastic changes to appeal to a younger crowd. Must be that I am older than I care to admit.