Just four months after social media giant Facebook bought Whatsapp for a massive $19 billion, tech giant Apple has bought the subscription streaming service Beats Music, and Beats Electronics, for $3 billion. Beats, an electronics company, is well known for its high end earphones and music connections.
The announcement was made on the 28th of May and would see its Beats’ co-founders rap star Dr. Dre and Jimmy Iovine join Apple as aim to maintain the Beats brand.
Iovine and Dr. Dre are interesting characters being artists, sound pioneers and successful businessmen.
iTUNES TO TAKE ON SPOTIFY
Apple are looking to regains its ‘beats’ in the music industry as they received stiff competition from other players which caused them to move lower in the pecking order as it lost some of its grip in the music industry.
The idea behind buying Beats is to improve iTunes lineup and take on the opposition. Most listeners have turned to streaming services such as Spotify and Pandora Media and the once popular Apple’s iTunes have only been selling downloadable music.
Beats started its subscription services in January 2014 and has already received approximately 250,000 subscriptions as of now. This is what caught the eyes of Apple who want to bridge the gap between the technology world and Hollywood. But then again, Spotify has about 10 million subscribers.
Is it $3bn well spent? Will the acquisition of beats make Apple ‘cool’ again? Will they crack it in the music industry?