Apple confirms $3 billion purchase of Beats
Apple today confirmed it has acquired the Beats Music streaming music service and headphone and speaker manufacturer Beat Electronics for $US3bn.
This means that Beats co-founders Jimmy Iovine and Dr Dre will now work for Apple.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO.
“That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”
Jimmy Iovine, who has been a force in the music industry for decades as well as a partner of Apple and iTunes for more than 10 years said: “I’ve always known in my heart that Beats belonged with Apple.
“The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
The move means Apple will introduce a streaming music service using the existing Beats Music as the basis for the project.
It will likely be rebranded to have closer ties with iTunes but will likely be mentioned as being “powered by Beats Music”.
Beats Music provides an artist-friendly tailored music streaming experience and programmed by a team with more than 300 years cumulative experience in the music industry.
This means a new Apple streaming music service will go up against existing and popular services like Spotify, Rdio and Deezer.
These services promote the fact they have more than 26 million tracks that can be enjoyed by their customers.
iTunes, on the other hand, has more than 37 million tracks in its library and will offer users a wider variety of music to choose from.
“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services.
“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.”
On the hardware side Apple will still operate the profitable Beats Electronics business with the sale of the products to continue through Apple’s stores around the world.