Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple
    • Cloud
    • Mobile

    Beats Acquisition Could Give Apple Needed Features and Younger Appeal

    By
    Michelle Maisto
    -
    May 9, 2014
    Share
    Facebook
    Twitter
    Linkedin

      Apple revolutionized the digital music industry, if not arguably created it, with the iPod and iTunes. That industry has since taken on a life of its own, though, and to keep up, Apple is said to be considering a bit of outside help in the form of a $3.2 billion acquisition of Beats Electronics.

      The Financial Times first reported May 8 that talks between the companies are underway.

      Beats was founded by rapper and hip-hop producer Dr. Dre and music mogul Jimmy Iovine, and has produced headphones Apple sells in its stores and partnered closely with smartphone maker HTC, sharing its audio technology. In January, it launched Beats Music, a $9.99-a-month streaming music service for iOS, Android and Windows Phone devices. It also made an exclusive deal with AT&T, offering up to five family members with AT&T service unlimited music for a total of $14.99 a month.

      In addition to access to 20 million songs, the service features technology that “combines the emotion only a human created playlist can give you with the best personalization technology can deliver,” Beats Music CEO Ian Rogers said in a Jan. 11 statement, introducing the service.

      An acquisition at the reported price would, by a considerable margin, be the most Apple has ever paid for a company—Apple founder Steve Jobs took pride in innovating from scratch, in-house.

      “Beats, a fashion accessory/peripheral plus a music service Dre paid $10 million-$16 million for in 2012? What’s worth the $3.2 billion again? Some algorithm for choosing tunes? The secret sauce that makes Beats’ audio quality discernibly better?” asked Roger Kay, principal analyst with Endpoint Technologies.

      “Apple certainly has the money,” Kay added, “but there are so many more valuable things to spend it on. I don’t get this, and nor does the market, which is busy punishing Apple stock today.”

      At Apple’s Worldwide Developer Conference in San Francisco last June, Apple introduced its own streaming service, iTunes Radio, calling it “the best music player we have ever done.” Competing with Spotify, Pandora, Rdio and others, however, it hasn’t gained an Apple-style degree of traction—which Beats could help change, Ezra Gottheil, a senior analyst with Technology Business Research, told eWEEK.

      “iTunes Radio is great for ‘back list’ songs, because it draws on an enormous database of purchased music,” said Gottheil. “In terms of, ‘If you like this, you will probably like that,’ iTunes Radio is very good at predicting what the user will like among older songs, but it has little insight into new music, which is critical for any streaming service, and critical for Apple’s image.”

      To that last point, Apple’s user demographic tends to be a bit older because its pricing is steep. It’s increasingly being viewed as a vendor of “well-supported, no-hassle devices for older and wealthier buyers,” Gottheil continued. “Beats will help with this in terms of brand, image and a streaming service that is seen as very good at curating new music.”

      A final benefit of the deal, Gottheil added, is that it would stand as evidence of CEO Tim Cook feeling comfortable to do things differently than Steve Jobs did.

      “I think that’s good for Apple,” said Gottheil.

      Follow Michelle Maisto on Twitter.

      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×