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
104 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
104 months ago
you're acquiring it wrong?
Score: 35 Votes (Like | Disagree)
losthorse Avatar
104 months ago
-- removed by user --
Score: 32 Votes (Like | Disagree)
bungiefan89 Avatar
104 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
104 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
104 months ago
Wow, that is a lot of money for (basically) two people.
Score: 22 Votes (Like | Disagree)

Popular Stories

anker 563 dock ports

Anker's Latest USB-C Docking Station Brings Triple-Display Support to M1 Macs

Wednesday May 18, 2022 7:06 am PDT by
While Apple's early M1-based Macs can only officially support a single external display, there are ways around the limitation. Anker is launching a new 10-in-1 USB-C docking station today which delivers just that. The Anker 563 USB-C dock includes two HDMI ports and a DisplayPort port, and it leverages DisplayLink to carry multiple video signals over a single connection. Given that this hub...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
apple data auction iphone privacy ad

Apple Highlights iPhone's Latest Privacy Features in New 'Data Auction' Ad

Wednesday May 18, 2022 9:00 am PDT by
Apple today shared a new ad highlighting iPhone privacy features like App Tracking Transparency and Mail Privacy Protection that are designed to give users more transparency and control when it comes to their personal data being collected. The ad revolves around a young woman named Ellie who discovers that her personal data is being sold at an auction house, with bids being placed on her...
apple ar headset concept 2

Apple's AR/VR Headset Nearing Completion as Board Gets Demo

Thursday May 19, 2022 9:52 am PDT by
Apple last week demonstrated its upcoming AR/VR headset to Apple board members, indicating that the device is in an advanced stage of development and could see a debut in the not too distant future, reports Bloomberg. Apple has also ramped up development of the software that runs on the headset, with that software expected to be called "RealityOS," or rOS for short. Render via designer Ian ...