Apple Reportedly Wants Beats Music but is Likely Going to Keep Beats Hardware Alive
A recent released report has said the alleged $3.2 billion bid for Beats Electronics by Apple was provoked by the impressive Beats Music subscription service. The company will also be helping ‘improve the quality of design’ in upcoming and future Beats headphones. It was said that Apple’s interest in the company was sparked because they were annoyed by the rate at which Beats Music was transforming free users to paid subscribers. And according to Bloomberg, the multi-billion dollar deal was made possible due to the already close relationship between Jimmy Iovine, Beats CEO, and Apple executives.
Apple’s sales of digital music downloads has been suffering due to the increasing popularity of music subscription services. The company’s own iTunes Radio streaming service was supposed to boost sales of individual tracks, but has been portrayed as ‘underwhelming’ due to the poor results with only 1%-2% of listeners making actual purchases.
Iovine will likely obtain a senior position at Apple as a result of the deal and who former Myspace executive Jason Hirschhorn called one of “Apple’s first friends in the music business.” Iovine is very well connected in the music industry and helped launch the iPod and iTunes alongside previous Apple CEO Steve Jobs. Apple’s interest in Beats was first publicized last week. The largest deal in Apple history is rumored to be officially announced as soon as this week. So be on the lookout!