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

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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Strategy
by ezraz on Fri 30th May 2014 13:33 UTC
ezraz
Member since:
2012-06-20

I see this as one of those moments where Apple makes it's detractors look accurate.

The reasons Apple did this:

-- get the ignorant teenagers who buy based on brand that think Apple is tired and old while Beats is fresh and new

-- get the low-income people who scoff at a $99 iphone as too expensive but will buy $150 crap headphones without blinking

-- get the hip-hop lovers and dance music lovers - that's who Beats caters too, and they are becoming the majority

All three of those are marketing and brand strategies. Maybe smart business but hard to take from a company who's engineering and product development I admire.


Other reasons they acquired Beats:

-- getting Jimmy Iovine on staff -- he could be one of the smarter guys left in the music business, and Apple is a major player in the music biz these days

-- getting Dr. Dre on staff -- also a genius businessman (make millions on NWA, find a white guy to do it again and make 10x that) and a tastemaker. to think that snoop dogg is going to be welcome on apple campus, pretty cool!

-- having something, anything, to compete against Spotify.


Overall it's just a branding/strategy/staffing sort of move, and doesn't do much for my audio production career or my Apple appreciation career.

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