Apple, Inc., The Electronics And Beats Music

1263 WordsAug 9, 20146 Pages
Apple acquires Beats. Apple, Inc., the electronics giant, has acquired Beats Music and Beats Electronics, the headphones giant, for $3.2 billion. Apple has enough money to buy or build any company they want to from ground up. So, why did Apple acquire Beats Electronics and Beats Music? According to NBC News, Apple CEO Tim Cook told Re/Code that the company "could build about anything that you could dream of," adding that acquiring Beats would give them a "head start" and add "kindred spirits" to company (Wagstaff, 2014). Given the years of musical experience that both Dr. Dre, a well-known legendary artist and music producer and Jimmy Iovine, the Chairman of Interscope Geffen A&M Records have and the energy they have brought to the hip-hop and pop cultures, it is no wonder that Apple would have made the decision to acquire Beats Electronics and Beats Music. In just six years, Dr. Dre and Iovine has sealed the whole consumer market for high-end headphones. Beats also unleashed Beats Music, a streaming music service. The negotiations take place at a critical time: the music market has seen a massive shift towards streaming and away from downloads. U.S. revenue from downloads -- which iTunes dominates -- dropped 1 percent to $2.8 billion in 2013, while streaming music revenue from the likes of Pandora and Spotify soared 39 percent to $1.4 billion, according to the Recording Industry Association of America (CBS News/AP, 2014). Beats Music will allow Apple to compete

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