Apple is After Beats' Streaming Music, Not the Headphones

When it was first reported that Apple is in the process of purchasing Beats from Dr. Dre for billions of dollars, the response to it was mixed and a lot of people used the sale as an excuse to bash the signature headphones. The executives at Apple aren’t stupid, though. They’re well aware of the mixed reception that the headphones have gotten from the audiophile community. According to a recent article by Forbes, it’s the Beats Music streaming service that they’re after.

That isn’t to say that Apple is abandoning the headphones, but they’re supposedly impressed with how many free trial members Beats has been turning into paid subscribers. that conversion rate is awfully appealing and they likely want to build upon that success, dominating the streaming music market in the same way they’ve dominated the downloadable music market with iTunes. The iTunes Radio service, which is their foray into subscription music streaming, doesn’t seem to be working out like they’d hoped.

Considering the popularity of services like Spotify and Grooveshark, snatching up Beats seems like a really smart move for Apple. One of the questions now is whether or not they’re going to muck with the branding or just run Beats as its own entity like they’ve done with FileMaker. In either case, we’re likely to see iTunes Radio phased out as Apple no longer has any use for it.

It was silly for people to jump the gun and criticize the acquisition based only on what we could see from the outside. Apple CEO Tim Cook clearly sees something in Beats that nobody else does and now his vision is becoming a little clearer. Whether that vision is worth $3.2 billion remains to be seen.


via TechCrunch

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