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We reported earlier this month that Apple intends to buy Beats Electronic and now we’ve gotten confirmation that the deal went down in California. Apple acquired Beats Electronics and it paid $3 billion for it!
Apple Acquired Beats Electronics
Apple confirmed today that it paid $3 billion for Dr. Dre’s company’s Beats Electronics. The company was founded in 2008 by Dre and chairman of Interscope Geffen A&M Records, Jimmy Iovine. Aside from making premium headphones, earphones and speaker, it has patented the popular Beats Audio technology and has one of the most successful streaming music subscription services available on the US marker, Beats Music.
What sets Beats Music apart from other music streaming services is that it has professionally-curated playlists, meaning that there are music professionals who put the lists together, helping you find the music you will love.
Many have wondered why Apple has done this surprising move, but we don’t believe it’s a surprising move at all. Actually, the purchase makes a lot of sense if you look at the statistics of digital downloads. The numbers aren’t in Apple’s favor, as the numbers are declining rapidly. Consumers love streaming services, such as Spotify and Pandora and Apple had to have a piece of that streaming cake.
Apple’s senior vice president of Internet Software and Services, Eddy Cue, explained Apple’s move in an official statement:
“Music is such an important part of Apple’s DNA and always will be. The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”
Apple will keep the Beats brand, and it will operate under the Apple umbrella. The two Beats founders, Dre and Iovine will join Apple.
Jim Cook, CEO of Apple explained why they chose Beats Electronics:
“These guys are really unique. It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find […] We love the subscription service that they built – we think it’s the first one that really got it right.”
Free streaming with iTunes Radio sounds like the bee’s knees, doesn’t it? What are your thoughts on this purchase? Do you think Apple made the right choice? Will Apple and Beats Electronics bring listening to music to a whole new and improved level? Do you have a Beats Music subscription?
