Apple may end Beats Music brand, to keep subscription streaming service active [u]
Apple on Monday denied rumors that it is planning to shut down the Beats Music subscription service, but a new report claims the company is looking into a branding change to more closely align the property with other first-party offerings.
Update: In a statement to Re/code, Apple spokesman Tom Neumayr said the TechCrunch rumor is "not true," but did not offer further comment on the matter. The publication cites sources at Apple as saying branding for Beats Music could change in the future, though the streaming service itself will remain active. The article has been updated to reflect the new information.
Citing five sources at Apple and Beats, TechCrunch reported on Monday that although the exact timetable is unknown, Apple plans to sunset the Beats Music service and brand. People involved in the product are said to have already been moved onto other projects at the company, including iTunes.
If true, the move would be a change from May, when Apple emphasized Beats Music as a key component of its $3 billion purchase of the headphone maker. The Beats Music product received top billing over Beats Electronics in Apple's press release announcing the deal, even though the headphone making side of the business is the brand's most recognizable role.
Observers also believed that the Beats Music service allowed Apple to enter a key subscription market where the iTunes Store and iTunes Radio do not compete. Sales of digital albums have been declining in recent years as customers have migrated to competing services like Spotify and Pandora.
But Beats Music also got off to a slow start, with just 110,000 subscribers as of March. Its performance since being acquired by Apple remains unknown.
Source: Beats Music
The rumor would suggest that Apple's $3 billion buyout of Beats was really about the headphones side of the business, as well as the talent and credibility brought on by the "acqui-hires" of Beats's Jimmy Iovine and Dr. Dre.
Iovine is a longtime music industry executive and was a personal friend of late Apple co-founder Steve Jobs. Both he and Dr. Dre have considerable sway in the industry and could help secure content for Apple's iTunes business.
When it was announced earlier this year, Apple's $3 billion buyout of Beats proved controversial, with critics suggesting that the iPhone maker had overpaid for a company better known for its brand than quality products. But proponents believe the addition of Beats products to Apple's portfolio will help the company earn revenue from a lucrative accessories market where the company did not previously compete.
Update: In a statement to Re/code, Apple spokesman Tom Neumayr said the TechCrunch rumor is "not true," but did not offer further comment on the matter. The publication cites sources at Apple as saying branding for Beats Music could change in the future, though the streaming service itself will remain active. The article has been updated to reflect the new information.
Citing five sources at Apple and Beats, TechCrunch reported on Monday that although the exact timetable is unknown, Apple plans to sunset the Beats Music service and brand. People involved in the product are said to have already been moved onto other projects at the company, including iTunes.
If true, the move would be a change from May, when Apple emphasized Beats Music as a key component of its $3 billion purchase of the headphone maker. The Beats Music product received top billing over Beats Electronics in Apple's press release announcing the deal, even though the headphone making side of the business is the brand's most recognizable role.
Observers also believed that the Beats Music service allowed Apple to enter a key subscription market where the iTunes Store and iTunes Radio do not compete. Sales of digital albums have been declining in recent years as customers have migrated to competing services like Spotify and Pandora.
But Beats Music also got off to a slow start, with just 110,000 subscribers as of March. Its performance since being acquired by Apple remains unknown.
Source: Beats Music
The rumor would suggest that Apple's $3 billion buyout of Beats was really about the headphones side of the business, as well as the talent and credibility brought on by the "acqui-hires" of Beats's Jimmy Iovine and Dr. Dre.
Iovine is a longtime music industry executive and was a personal friend of late Apple co-founder Steve Jobs. Both he and Dr. Dre have considerable sway in the industry and could help secure content for Apple's iTunes business.
When it was announced earlier this year, Apple's $3 billion buyout of Beats proved controversial, with critics suggesting that the iPhone maker had overpaid for a company better known for its brand than quality products. But proponents believe the addition of Beats products to Apple's portfolio will help the company earn revenue from a lucrative accessories market where the company did not previously compete.
Comments
I saw this coming as soon as Apple purchased Beats. To me, it makes no sense what so ever to have 2 services under its belt that basically compete against each other. Why not take that technology (the agreements too if all possible) and merge it into iTunes Radio.
I could see the streaming service surviving ... they'll just call it "iTunes" rather than "Beats".
In other words, they'll shut down the "Beats" brand (at least for streaming... may keep it on the headphones) and roll the actual streaming service into "iTunes".
speculation is fun.
Uh, yeah.
This article has some issues. Apple didn't say they were going to keep beats music around. Tim basically said he thought that Beats got it right. That doesn't mean he wants to keep it around. It means he will take what he likes and wants into an iTunes service where it belongs. Expect human curation coming to an iTunes streaming service. Tim also said that the brand isn't going anywhere soon. But I always took that as the top brand Beats by Dre. So the headphones and sound bars, etc can keep that as a sub brand under Apple.
They don’t have to support it now. The app could be removed from availability and all calls/e-mails from Android users could be ignored.
I find this rumor to be hilarious." src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
I find this rumor to be hilarious." src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
Even more hilarious if it's true.
Even more hilarious if it's true.
Agreed, and I can't say that it would surprise me in the least, if it were true.
Making curation and the subscription service part of iTunes makes sense, as iTunes is a global brand and Beats Music virtually unknown outside the US.
1. This rumor is not true and Apple
continues to push Beats streaming.
2. Apple figured Beats and iTunes side by side is too confusing and fragmented. They decide to move all Beats services/talent/ideas to iTunes, making iTunes a monster kick@** service.
3. Apple trolls android. They pull the service completely.... from android devices.
Personally I've wanted to see option 2 happen. But the name "Beats" holds a lot of weight. Regardless of what iHaters say, the service is growing and will continue to grow. Apple could face a backlash and it wouldn't be an easy transition for subscribers(especially android subscribers). The longer they hold off merging iTunes and Beats the harder it will get.
So long as they work their humanized algorithm into their Genius Mix and iTunes Match I'll be happy.
I was thinking similar things. I doubt that they will shutter it so much as meld it into existing systems.
"If true, the move would be a change from May, when Apple emphasized Beats Music as a key component of its $3 billion purchase of the headphone maker."
May???
Mr. Cook said something to that effect during the Charlie Rose interview...
This is probably the kind of thing where a kernel of truth
has been given the most "newsworthy" spin...gee, wonder why they'd do that?
(oops, was typing - yeah! Waldobushman)