Apple in talks for $3.2bn Beats deal

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They don't need to buy another company if they want streaming. iTunes is already the biggest music store hands down. All they have to do is release 'iTunes streaming' and call it a day.

Apple doesn't care about product cannibalization, as seen with their previous product releases already.

Jimmy Iovine* is a big music producer? Perhaps Beats has better streaming deals with the record labels that apple can incorporate with their ITunes.
 
They don't need to buy another company if they want streaming. iTunes is already the biggest music store hands down. All they have to do is release 'iTunes streaming' and call it a day.

Apple doesn't care about product cannibalization, as seen with their previous product releases already.

If only they'd known how easy it was, I guess.
 
Regardless of what everyone on the internet says - the iPhone is the best phone I've ever had, and I've had HTC, Samsung, LG and Sony with multiple versions of Android.

Beats Solos, however, are the worst headphones I've heard at ANY price. They don't even sound serviceable.
 
I thought audiophiles thought Beats were the Bose of headphones.

They are.

Do people not know beats has a streaming service?

Yes we know.

It's really solid. What an odd thing to just assume about a product you can try free.

Its actually anything but solid.

Beats Music said to be struggling with subscriber count in 'the low six figures'

Just because millions of consumers wear your headphones doesn't mean they're going to use your streaming music service. That's apparently a lesson Beats is learning the hard way. Billboard reports that Beats Music is off to a slow start and has put together disappointing subscription numbers in its first 100 days since launch. The total paid subscriber count is said to be somewhere in the "low six figures" range. And that's after a generous free trial window and a major marketing push. Beats showcased its young streaming music app with a perfectly timed Richard Sherman spot and a pricey Super Bowl ad. But industry insiders tell BIllboard that Beats Music isn't yet taking off like anyone had hoped.
http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling

But ... yeah whatevs. If they wanted a streaming service they had much better choices than beats raggedy assed struggle service. They did this for the hardware/headphones. And those things are genuinely awful.
 
Would've preferred Rdio or Spotify, but sure.

They are.



Yes we know.



Its actually anything but solid.


http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling

But ... yeah whatevs. If they wanted a streaming service they had much better choices than beats raggedy assed struggle service. They did this for the hardware/headphones. And those things are genuinely awful.

Actual reviews of the product say it's generally good.

http://readwrite.com/2014/01/22/beats-music-review#awesm=~oDIe9cLVuVDgxM
http://online.wsj.com/news/articles/SB10001424052702304757004579334600698782982
 
Excited for Apple to enter the music streaming business. If Beats is what they need to buy, so be it.
 
This seems CRAZY to me.


Beats is a branding company, and one hipster away from becoming passé, not a technology company. Is apple genuinely getting on the follower bandwagon instead of leading?


Am I the crazy one?

Apple is also a branding company. Part of the appeal is aluminum computers with machined edges. They even give you a nice sticker with your iPod to show how cool you are. You know those earbuds that hurt your ears and sound like shit but have the unmistakable white cord? They made a few commercials with it. Yeah I think Beats and Apple can be best buds.

Also Beats music is apparently bombing extremely hard. There is no reason for Apple to buy that portion of the company: http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling.
 
Apple is also a branding company. Part of the appeal is aluminum computers with machined edges. They even give you a nice sticker with your iPod to show how cool you are. You know those earbuds that hurt your ears and sound like shit but have the unmistakable white cord? They made a few commercials with it. Yeah I think Beats and Apple can be best buds.

Also Beats music is apparently bombing extremely hard. There is no reason for Apple to buy that portion of the company: http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling.

It's subscriber count doesn't matter, it has all the contracts and infrastructure set up for streaming music and has a unique pitch. They aren't buying them for their subscribers
 
There was talk of Apple wanting/needing to expand their itunes services to competing platforms. Buying Beats, and keeping their streaming service multi-platform would be one way to do it. Then again I remember reading Beats streaming wasn't doing too well. If it's for the headphone/hardware business, any in house Apple gear would sell buckets and have cheaper start up costs.
 
Apple is also a branding company. Part of the appeal is aluminum computers with machined edges. They even give you a nice sticker with your iPod to show how cool you are. You know those earbuds that hurt your ears and sound like shit but have the unmistakable white cord? They made a few commercials with it. Yeah I think Beats and Apple can be best buds.

Does it really bother you that much that people like other things? I'm trying to understand your level of salt here.

If there was a "Samsung to buy Rhapsody!" thread I can't imagine I would enter a thread about two companies that aren't on my radar, let alone be so openly upset about it.

It's subscriber count doesn't matter, it has all the contracts and infrastructure set up for streaming music and has a unique pitch. They aren't buying them for their subscribers

I feel like you're arguing someone who really just came into the thread to remind us how much he hates these things and wasn't really making a point.
 
Apple is also a branding company. Part of the appeal is aluminum computers with machined edges. They even give you a nice sticker with your iPod to show how cool you are. You know those earbuds that hurt your ears and sound like shit but have the unmistakable white cord? They made a few commercials with it. Yeah I think Beats and Apple can be best buds.

Also Beats music is apparently bombing extremely hard. There is no reason for Apple to buy that portion of the company: http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling.

I find it annoying that you focus on userbase and not the actual quality of the software. It is regarded as one of the best streaming services because of the curation and great music discvoery.
 
Why would they need Beats? Streaming service included.

Doesn't iTunes serve that purpose? 3.2billion just to buy your potential competition seems a little too high.
 
I would think Samsung would fit better then Apple anyway. Both plastic garbage propped up by millions in marketing
 
Apple is also a branding company. Part of the appeal is aluminum computers with machined edges. They even give you a nice sticker with your iPod to show how cool you are. You know those earbuds that hurt your ears and sound like shit but have the unmistakable white cord? They made a few commercials with it. Yeah I think Beats and Apple can be best buds.

Also Beats music is apparently bombing extremely hard. There is no reason for Apple to buy that portion of the company: http://www.theverge.com/2014/4/21/5636704/beats-music-is-struggling.


Sure but Apple is also an industrial design giant, and they do make excellent tech. I don't like iTunes, but I love their OSs.
 
This just soooo confusing...the valuation seems wayyy off, just last year HTC sold its remaining 24.84% stake in Beats back to the company for $265 million and now the company is worth $3.2 billion now? Is Beats Audio really that good or am I missing something?
 
I don't like Beats. But launching as a Monster Cable product pretty much got me off to a bad start with them.

I was working commission sales when the first Beats released,and I saw exactly how its desirability was manufactured by the high commissions it gave salespeople and the celebrities paid to wear them in music videos.
 
Super psyched they're not buying Sennheiser. I already avoid mainline Beats products and Apple products, so I'd be happy to stop seeing the "B" logo on devices I might buy.
 
This just soooo confusing...the valuation seems wayyy off, just last year HTC sold its remaining 24.84% stake in Beats back to the company for $265 million and now the company is worth $3.2 billion now? Is Beats Audio really that good or am I missing something?

They have deals with artists for streaming, curating as well as timed exclusive releases on streaming... That's worth more than headphones
 
pretty smart move on Apple's part, and Dre just got paaaaaiiiiidddd

Came in here to say this.
Although I would've added "Overpriced, and inferior to other lesser-priced devices"

Which ones?
The Apple ones, or the Beats ones?

whynotboth.gif

Unsure as to whether you're talking about Apple or Beats, since both have products that fit that description.

glad you finally found something you enjoy

Super psyched they're not buying Sennheiser. I already avoid mainline Beats products and Apple products, so I'd be happy to stop seeing the "B" logo on devices I might buy.

i love all my sennheier's but i'll never understand the elitism amongst electronics enthusiasts
 
Does it really bother you that much that people like other things? I'm trying to understand your level of salt here.

If there was a "Samsung to buy Rhapsody!" thread I can't imagine I would enter a thread about two companies that aren't on my radar, let alone be so openly upset about it.

I don't care if you like it (though both companies' products are often used to as a type of culture or status symbol and therefore users might care if I care). I'm cheekily explaining that both are heavy marketing/design machines and their business models are similar.

I find it annoying that you focus on userbase and not the actual quality of the software. It is regarded as one of the best streaming services because of the curation and great music discvoery.

Apple has fine software themselves, if they needed something else there's no shortage of decent companies that stream music and have a decent interface that would cost much, much less. That division of Beats is worth nothing.
 
I just always assumed iTunes Radio served the same purpose as Pandora, Spotify, etc.

Then again I barely use that stuff so I wouldn't be able to tell the difference.

It's like a Pandora station, but I can't just go listen to like The Downward Spiral at will if I want to like I can with a sub service.
 
Whether this make sense comes down to the deals Beats and Jimmy Iovine negotiated with the labels, which only Beats' lawyers know.

If the deals guarantee Beats Music can keep running after the acquisition, with no additional payouts to the labels or artists, for a certain number of years, then the purchase is literally a goldmine for Apple.

favoritestreamingpayout3.jpg


It would mean Apple would get to launch a Spotify competitor paying stream rates closer to what Spotify and Rdio negotiated as startups with equity deals with the labels, and not what Google and Microsoft negotiated at the left end of the chart. And Apple's Spotify competitor, unlike Beats Music, would have instant insane distribution with credit card numbers already on file.
 
Funny thing is the latest iphone/ipod are pretty decent in terms of sq, Wolfson audio chip from what I remember.
 
I just always assumed iTunes Radio served the same purpose as Pandora, Spotify, etc.

Then again I barely use that stuff so I wouldn't be able to tell the difference.

The problem with it, is that it doesn't service the massive amount of people using Android phones and to a lesser extent Windows Phone. Those OS's aren't going away, that much is clear now. So you either find a way to offer a cross platform option the way Google and MS do for a lot of their services, or you resign yourself to a ever smaller portion of the overall world userbase.

If they just flat out ported iTunes to WP8 or something there would be a shitload of laughs, not because it wasn't smart, but because it would definitely be seen as ceding that these operating systems they barely even like to recognize as competitors are actually relevant. This way though, you buy a name, and a service and since its already cross platform, you just leave it that way, and try to make it popular.

Whether this make sense comes down to the deals Beats and Jimmy Iovine negotiated with the labels, which only Beats' lawyers know.

If the deals guarantee Beats Music can keep running after the acquisition, with no additional payouts to the labels or artists, for a certain number of years, then the purchase is literally a goldmine for Apple.

Even if it was guaranteed for the next decade, and they got rates lower than Amazon, calling it a goldmine is a massive massive MASSIVE overstatement. It would save/make them some money, but a goldmine? No.
 
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