Report Claims Beats Acquisition to Bring "Culturally Aware" Managers to Apple, Manage Subscription Music Transition

jimmy-iovine-crop-324x285Bringing "culturally aware" managers to Apple is a big part of why Apple is interested in acquiring Beats, according to a new report from TechCrunch.

The piece claims that Jimmy Iovine and Dr. Dre are the big prizes at the company, and that it fits with Tim Cook's recent hiring of high-fashion managers like Angela Ahrendts from Burberry, wearable expert Ben Shaffer from Nike, and Paul Deneve from Yves St. Laurent.

Dre and Iovine have design and marketing savvy from Beats that could be significant for the company, which has struggled somewhat with its marketing efforts since Steve Jobs has passed away.

A well-placed source has confirmed rumors that Apple’s acquisition of Beats “is happening” but was close to falling apart multiple times. The source said with “70% certainty” that Apple’s planned multi-billion acquisition of headphone maker Beats will go through. But Apple isn’t buying Beats for the technology, they’re buying the talent.

“They want Jimmy and they want Dre,” said the source. “He’s got fashion and culture completely locked up.”

In a separate TechCrunch piece, a different reporter says Apple is looking to operate Beats as an external streaming music service to avoid cannibalizing its iTunes download business.

Reportedly, it's not that Apple is worried about losing its 30% cut of song downloads, but Apple launching a streaming music service could decimate the more than $1 billion that iTunes generates for record industry revenues.

Because it’s deeply conscious that pumps a lot of blood into the music industry. My source says iTunes execs started deeply considering streaming at least two years ago. They realized a sudden move for iTunes from downloads to streaming could lead to dark days for the record business, reducing musical inventory – and revenue – accordingly.

The piece argues that Apple may be looking to grow its streaming business on the side as iTunes music downloads drop, and that the company is looking to "bridge the download and cloud eras gracefully."

It says Apple executives are looking to strike a deal with record labels that would allow the company to sell a subscription music service for $5 per month, half of what Spotify charges, but with a higher cut of revenues.

Supposedly the acquisition will be announced soon, perhaps during Apple's Worldwide Developers Conference keynote on June 2.

Top Rated Comments

johnnyturbouk Avatar
90 months ago
oh great, loving the way Tim Cooks is piloting Apple to some douche, image obsessed boutique! Damn it, just make magical products and most of us fanboys will be happy :mad:

PS cant wait for the Dr Dre Macbook, featuring the Snoop doggy keyboard - oh please kill me now!
Score: 50 Votes (Like | Disagree)
needfx Avatar
90 months ago
you're acquiring it wrong?
Score: 35 Votes (Like | Disagree)
losthorse Avatar
90 months ago
-- removed by user --
Score: 32 Votes (Like | Disagree)
bungiefan89 Avatar
90 months ago
Apparently, pushing a brand that emphasizes style over substance and getting endorsements from mainstream celebrities qualifies as "culturally aware."

God, this makes me sick. :mad:
Score: 24 Votes (Like | Disagree)
apolloa Avatar
90 months ago
hahaha 'culturally aware' haha, it's like a parent trying to use the internet to be hip with their children hehe.

If there's ONE company that really doesn't need to be 'culturally aware' it's Apple! It's brand is so cool and hip with young people it's crazy.
Score: 23 Votes (Like | Disagree)
Eduardo1971 Avatar
90 months ago
Wow, that is a lot of money for (basically) two people.
Score: 22 Votes (Like | Disagree)

Top Stories

siir apple event april 20

Siri Reveals Apple Event Planned for Tuesday, April 20

Tuesday April 13, 2021 12:04 am PDT by
Siri has apparently prematurely revealed that Apple plans to hold an event on Tuesday, April 20, where the company is expected to reveal brand new iPad Pro models and possibly its long-awaited AirTags trackers. Subscribe to the MacRumors YouTube channel for more videos. Upon being asked "When is the next Apple Event," Siri is currently responding with, "The special event is on Tuesday, April...
apple event spring loaded

Apple's 'Spring Loaded' Event Officially Announced for Tuesday, April 20

Tuesday April 13, 2021 9:04 am PDT by
Following an overnight leak by Siri, Apple today officially announced that it will be holding a special "Spring Loaded" event on Tuesday, April 20 at 10:00 a.m. Pacific Time at the Steve Jobs Theater on the Apple Park campus in Cupertino, California. As with all of Apple's 2020 events, the April 2021 event will be a digital-only gathering with no members of the media invited to attend in...
Google maps feaure green

Google Maps App for iOS Finally Updated After Four Months

Monday April 12, 2021 10:03 am PDT by
Following the completed rollout of App Privacy labels for its App Store apps, Google today updated the Google Maps app for the first time in four months. Apple in December began requiring all new app submissions and app updates to include App Privacy labels, detailing the data that is collected by the app so consumers know what they're sharing. Google didn't begin implementing App Privacy ...
pixel watch prosser leak

Google Pixel Watch Allegedly Leaks with Circular Design, Rumored to Launch in October

Monday April 12, 2021 2:49 am PDT by
Renders of Google's first smartwatch, codenamed "Rohan," have been shared by Jon Prosser, showing that Google plans to adopt a circular design for its flagship wearable watch. Prosser shared the renders in an episode of his YouTube show "Front Page Tech," in which he claims they were made based on marketing material he had seen from a source within Google. The renders show that the Pixel...
apple event hashflag

Twitter Hashflag for April 20 Apple Event Goes Live

Tuesday April 13, 2021 2:21 pm PDT by
Following the overnight Siri leak and subsequent announcement that Apple will hold a media event on Tuesday, April 20, a new Twitter hashflag has appeared to help provide visibility for the event on the platform. For the last several recent events, Apple has utilized hashflags, which are little icons next to hashtags on Twitter, as a way to market its events. The company first started the...
macos catalina serial number

Apple Preparing Rollout of New Randomized Product Serial Numbers Ahead of 'Spring Loaded' Event

Wednesday April 14, 2021 2:08 am PDT by
Apple is advising its authorized premium resellers and dealers to prepare for new products with 10 and 12 digital serial numbers, days ahead of when it's expected to reveal a slew of new products. MacRumors previously reported that Apple plans to switch to randomized serial numbers for future products starting in early 2021. The company now seems to be preparing for that roll-out, telling...
iphone12cameras

Kuo: 2022 iPhones to Feature 48-Megapixel Camera, 8K Video, and 6.1 and 6.7" Sizes With No 5.4" Mini Option

Tuesday April 13, 2021 10:45 pm PDT by
The upcoming 2022 iPhone lineup will feature two 6.1-inch devices and two 6.7-inch devices, with no mini-sized 5.4-inch iPhone, well-respected Apple analyst Ming-Chi Kuo said in a note to investors that was seen by MacRumors. Two of the iPhones will be high-end models and two of the iPhones will be lower-end models, similar to the current iPhone 12 lineup. Apple introduced the 5.4-inch...
AppleTV and HomePod Feature

Bloomberg: Apple Working on New Apple TV With Integrated HomePod Speaker and FaceTime Camera

Monday April 12, 2021 3:32 am PDT by
Apple is working on a combined Apple TV with HomePod speaker that has a camera for video calls through a connected television set, according to Bloomberg's Mark Gurman. From the report: The company is working on a product that would combine an Apple TV set-top box with a HomePod speaker and include a camera for video conferencing through a connected TV and other smart-home functions,...
epic iap feature 3

Tim Cook Says App Store Would Become a 'Flea Market' if Third-Party Payment Systems Were Allowed

Monday April 12, 2021 9:41 am PDT by
In a recent interview with the Toronto Star, Apple CEO Tim Cook spoke about a wide variety of topics, ranging from App Tracking Transparency to Apple's ongoing legal battle over App Store policies with Fortnite creator Epic Games. Notably, Cook said that Epic Games' desire for Apple to let developers offer their own payment systems in apps "would make the App Store a flea market":At the...
tim cook toronto star

Tim Cook Says Apple is 'Not Against Digital Advertising' Ahead of iOS 14.5 Launch With App Tracking Transparency

Monday April 12, 2021 8:00 am PDT by
Starting with iOS 14.5, iPadOS 14.5, and tvOS 14.5, Apple will be requiring apps to receive a user's permission to track their activity for targeted advertising purposes, as part of a privacy measure known as App Tracking Transparency. Ahead of App Tracking Transparency being enforced, Apple CEO Tim Cook has participated in a privacy-focused interview with the Toronto Star, telling the...