Linked by Thom Holwerda on Wed 28th May 2014 21:19 UTC

Apple, the company that turned digital music into a mainstream phenomenon, said on Wednesday that it was buying Beats Electronics, the rising music brand, for $3 billion, in a move that will help it play catch-up with rivals that offer subscription-based music services.

I still have no idea why Apple is buying these guys. Then again, that's probably why I'm not a billionaire.

Coincidentally, I find it highly entertaining that technically, this is now an Apple product.

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by RJay75 on Thu 29th May 2014 06:13 UTC
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I don't think it has anything to do with their new subscription service. It has everything to do with the Beats brand. They are buying a brand. Beats has taken a market (expensive headphones) and made it into a fashion statement. I know a ton of young people who want Beat's headphones not because of any quality it may have but because it's a fashion statement.

Beats have been integrating with Android phones making a Beats logo'd phone a thing to pair with Beats headphones. Apple isn't about licensing any brand. They want to own and be the brand. This fits in perfectly with a revitalization of the iPod brand. Now you will have iPods with Beats built in and no one else will have Beats. Where will all the people who've invested in $100+ headphones turn to for a compatible music player. iPods and iPhones.

It's a brand that has taken a play out of their play book, turn a commodity item into a fashion statement, and made it a successful business. That they can canabalize another music service is a bonus.

Its all about branding. Say goodbye to HTC Beats branded phones.

$3 Billion to buy a successful urban brand that fits in to the Apple ecosystem of fashion driven hardware. Chump change easy money.

Edited 2014-05-29 06:19 UTC

Reply Score: 4

RE: Easy
by unclefester on Thu 29th May 2014 08:03 in reply to "Easy"
unclefester Member since:

In the long term it will backfire. People will probably stop buying Beats headphones rather than switch to Apple phones.

Reply Parent Score: 3

RE[2]: Easy
by gan17 on Thu 29th May 2014 10:18 in reply to "RE: Easy"
gan17 Member since:

In the long term it will backfire. People will probably stop buying Beats headphones rather than switch to Apple phones.

You shouldn't ever underestimate a first-world teenager's capacity for tackiness. If anything, we'll probably see a number of teens who walk around in Samsung/Beats combos switch to iPhone as soon as Apple pay that Lebron James guy enough to stop using his Galaxy phone.

Edited 2014-05-29 10:18 UTC

Reply Parent Score: 5