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Apple wants Beats for Jimmy Iovine and Dr. Dre, not technology - Page 2

post #41 of 114
Tim and the Apple board are pretty frugal on acquisitions so to spend $3.2B there has to be a long term plan. It's not for headphone hardware, they could have done that in-house and done a better job. Dre and Iovine are talented and have some great music connections. Having them onboard is definitely a plus. I think the longterm strategy is to expand the iTunes ecosphere. Beats has done an amazing job with Beats Radio in a very short time. They cross platforms. What if Apple decides to take iTunes Radio, enhance it's features with Beats, and make it crossplatform? Using the two new executives clout they negotiate a better price scale on music licensing. Heck if they really wanted to go all out they could take iTunes Music Store cross platform. That would be worth $3.2B.
post #42 of 114
Apple will get a lot of value out of this acquisition, which most of it will help pay for the deal itself in a relatively short amount of time.

I'd say the main reason Apple is going this route is make sure they do not get dethroned as the music leader with iTunes. This will help them stay on top and help lead them into the next generation of content with bright minds, wherever that direction may lead to.
post #43 of 114
Cronyism at its worst.
 
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post #44 of 114
Quote:
Originally Posted by mnbob1 View Post

Tim and the Apple board are pretty frugal on acquisitions so to spend $3.2B there has to be a long term plan. It's not for headphone hardware, they could have done that in-house and done a better job. Dre and Iovine are talented and have some great music connections. Having them onboard is definitely a plus. I think the longterm strategy is to expand the iTunes ecosphere. Beats has done an amazing job with Beats Radio in a very short time. They cross platforms. What if Apple decides to take iTunes Radio, enhance it's features with Beats, and make it crossplatform? Using the two new executives clout they negotiate a better price scale on music licensing. Heck if they really wanted to go all out they could take iTunes Music Store cross platform. That would be worth $3.2B.

Into what? Rap? Hip hop? Dino Rock?
How will this enhance Apple's Classical catalogue? Jazz? Country? Blues?
 
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post #45 of 114
$3.2 BILLION for TWO PEOPLE?

LOL, if this is true, Tim Cook is even crazier than he looks.
post #46 of 114
Quote:
Originally Posted by Rogifan View Post

Just wait putting lipstick on the pig will happen soon.

Please don't make me post a pic of Fonzi jumping the shark- please Apple.
 
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post #47 of 114
Uggggggh! APPLE IS NOT GOING TO AQUIRE BEATS!
post #48 of 114
I would wait until I got confirmation from Cook before writing this type of article. No one knows until there is something official.
post #49 of 114
Quote:
Originally Posted by ealvarez View Post

Who is the "well-placed source"?
 

 

Solange?

 
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post #50 of 114
Quote:
Originally Posted by Lord Amhran View Post

Makes sense actually. There's rumors of a revamped AppleTV in which Apple could be looking for content deals in which case Iovine would be invaluable, Dre to a lesser extent.

The only thing that doesn't really make much sense is the price. As well connected as Iovine and Young are, are they really worth $3.2 billion?
I just don't see how hiring a music insider helps your TV/video business. Is the expectation that he music credentials somehow give him access to the studios?

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #51 of 114

I'm wondering what the reaction is going to be at WWDC if they drag these two on stage.   It could go one of three ways.  1.  Cheers, 2.  Boos or 3.  No response.

 

This ought to be interesting.  I think Cook has lost his mind on this one.

post #52 of 114
I call BS. This is just an example of how screwed up the press is. One person reported it, with no sources cited. Everything else is someone else reporting on the original report....not an independent story with its own source.
post #53 of 114

Damn, people are losing their minds over this deal, so let me channel my inner Tim Cook for those of you who have a problem with this deal.  If you don't like this deal, too bad, "#dealwithit you are a nobody." If you are a apple supporter and are disappointed in apple for making this deal "get a life." Last but not least if you are a stock/shareholder and you don't like this deal then "get out of the stock." LMFAO.

post #54 of 114
Google's buying amazing AI (DeepMind), amazing robotics (Boston Dynamics & half a dozen other advanced robotics companies in US and Japan), connected home automation and hardware (Nest) and on the other end, Facebook is buying AI, communications and messaging companies.

What is Cook buying? Urban fashion and bling bling sapphire glass. Oh, and he hired Burberry CEO to run Apple stores with hope she turns them into luxury-like stores.

My iPhone still can't do real-time translation, Siri still sucks when compared to what Google and MS are offering and Maps are still worse than the competition (even a lot more worse if you're not in the US). But T.Diddy doesn't care about that. He is blinging out iPhones and is paying little intention to what you can actually do with these things. I hope that in the future my iPhone won't be just a pretty ornament and a status symbol that can't do much other than look amazing.

Tim Cook = Steve (not Jobs).. but the other Steve… Steve Ballmer.
post #55 of 114
Quote:
Originally Posted by Tulkas View Post


I just don't see how hiring a music insider helps your TV/video business. Is the expectation that he music credentials somehow give him access to the studios?


My understanding is that he's very close to the musical/entertainment industries:

 

https://www.google.com/search?q=jimmy+iovine+relationship+to+music+industry&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

post #56 of 114
Quote:
Originally Posted by Constable Odo View Post

I don't believe they have to be the perfect fit but I'm sure there are some compromises that can be met.  Iovine and Dr. Dre are businessmen and I'm sure they have very good connections to the music business that Apple could use.  They're probably going to be used strictly as advisers and so they probably won't be punching a clock.  They may have a few meetings every so often and come up with ideas.  I honestly don't see how spending $3.2 billion is going to hurt Apple in any way even if the deal doesn't turn out perfectly.  I'm sure Apple will get at least a few billion dollars back from the deal in a year's time.  If Apple does establish some sort of record label I'm sure this deal will be worth every penny.  I'd certainly like to see Apple get into the content business and these two men definitely know how to create content.

So, I think Iovine and Dr. Dre will be good for Apple strictly as advisers and mostly given free reign.  I don't know their individual personalities, but maybe true artists never fit that well into a corporate environment.  These two guys are leaders and are capable of working on their own instead of blindly following orders.  I wouldn't think that Steve Jobs would have fit in a corporate environment because he didn't take crap from anyone and did his own thing.  Steve definitely wouldn't have been considered a team player if that's what you're talking about by fitting into a corporate environment.
The studios don't like Apple and are desperate not to given them more control of their partnerships. Having Iovine and Dre front the discussions doesn't seem like it would do much...it's not like the labels wouldn't know their dealing with Apple and have the same feelings toward them. And paying $3.2B for advisors who could then walk away at any time (or get hit by a bus as someone previously mentioned) doesn't seem very well planned.

As for content, what do they know outside of music? Music is not the next frontier. Video is really the next (last?) content industry Apple hasn't really entered into and taken a leading role or at least hasn't led an explosive growth of (as they did for music and mobile apps and games). What do Dre and Iovine bring for signing better distribution deals with the studios?

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #57 of 114
Quote:
Originally Posted by Lord Amhran View Post


My understanding is that he's very close to the musical/entertainment industries:

https://www.google.com/search?q=jimmy+iovine+relationship+to+music+industry&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Yes, that's why I referred to him as a music insider.

So his connections in music are expected to translate into movies and TV content contracts?

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #58 of 114
This deal is an aqui-hire, but not of just Iovine and Dre. This deal is about aquiring their marketing and product teams. Beats isn't two guys in a garage.
post #59 of 114
I'm quite fed up with these rumours, can't they agree on something beside the 3.2b part?!
post #60 of 114
Quote:
Originally Posted by mnbob1 View Post

Tim and the Apple board are pretty frugal on acquisitions so to spend $3.2B there has to be a long term plan. It's not for headphone hardware, they could have done that in-house and done a better job. Dre and Iovine are talented and have some great music connections. Having them onboard is definitely a plus. I think the longterm strategy is to expand the iTunes ecosphere. Beats has done an amazing job with Beats Radio in a very short time. They cross platforms. What if Apple decides to take iTunes Radio, enhance it's features with Beats, and make it crossplatform? Using the two new executives clout they negotiate a better price scale on music licensing. Heck if they really wanted to go all out they could take iTunes Music Store cross platform. That would be worth $3.2B.
A) the labels would still know they are dealing with apple and still hate apple, whether Iovine and Dre are leading the discussions or not.
B) how much did they accomplish with Beats streaming? Less than 100k paid subscribers? From a technological perspective, what do they bring that Apple couldn't do better for a couple orders of magnitude less money?

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
Reply

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #61 of 114
Quote:
Originally Posted by island hermit View Post
 

 

Is Ive quitting?

 

Ive is good at hardware, not particularly good at UI design, and is not leading any innovation as far as I've seen or read. He is a designer. He doesn't manage the software or decide what happens on the hardware front with new devices. He just makes whatever is decided elsewhere, pretty.

post #62 of 114
Quote:
Originally Posted by AZREOSpecialist View Post
 

 

Ive is good at hardware, not particularly good at UI design, and is not leading any innovation as far as I've seen or read. He is a designer. He doesn't manage the software or decide what happens on the hardware front with new devices. He just makes whatever is decided elsewhere, pretty.

 

I guess you haven't been paying attention.

na na na na na...
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na na na na na...
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post #63 of 114
Quote:
Originally Posted by AZREOSpecialist View Post

Ive is good at hardware, not particularly good at UI design, and is not leading any innovation as far as I've seen or read. He is a designer. He doesn't manage the software or decide what happens on the hardware front with new devices. He just makes whatever is decided elsewhere, pretty.
So, then you haven't read about Apple over the last 17 years or so nor anything about what Ives does there (especially in the last year and a bit)?

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
Reply

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #64 of 114
Quote:
Originally Posted by Johnny Mozzarella View Post

This deal is an aqui-hire, but not of just Iovine and Dre. This deal is about aquiring their marketing and product teams. Beats isn't two guys in a garage.
pray tell why Apple needs their product team?
post #65 of 114
Quote:
Originally Posted by AZREOSpecialist View Post

Ive is good at hardware, not particularly good at UI design, and is not leading any innovation as far as I've seen or read. He is a designer. He doesn't manage the software or decide what happens on the hardware front with new devices. He just makes whatever is decided elsewhere, pretty.

This is what Steve told Walter Isaacson (p. 364 in his book):
Quote:
"The difference that Jony has made, not only at Apple but in the world, is huge. He is a wickedly intelligent person in all ways. He understands business concepts, marketing concepts. He picks stuff up just like that, click. He understands what we do at our core better than anyone. If I had a spiritual partner at Apple, it’s Jony. Jony and I think up most of the products together and then pull others in and say, “Hey, what do you think about this?” He gets the big picture as well as the most infinitesimal details about each product. And he understands that Apple is a product company. He’s not just a designer. That’s why he works directly for me. He has more operational power than anyone else at Apple except me. There’s no one who can tell him what to do, or to butt out. That’s the way I set it up."
I'm sure some others at Apple might not entirely agree with this quote, but clearly Ive is more than someone who is brought in at the end to make things look pretty.
Edited by Rogifan - 5/22/14 at 5:03pm
post #66 of 114

LOL funniest rumor ever. 

post #67 of 114
Couldn't they have bought them without the company? Oh, wait, maybe after getting them they sell the company to Google or Samsung.
A.k.a. AppleHead on other forums.
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post #68 of 114
Quote:
Originally Posted by Rogifan View Post


I think you forgot this: /s

 

Not sure what that means, but okay.

post #69 of 114
Quote:
Originally Posted by AZREOSpecialist View Post

Not sure what that means, but okay.
See my edited post.
post #70 of 114
Quote:
Originally Posted by Tulkas View Post


Yes, that's why I referred to him as a music insider.

So his connections in music are expected to translate into movies and TV content contracts?

What's hysterical is that the music/movie sales/profits is such a small part of Apple's business model, I think this whole thing is overhyped. Beats may sell a bunch of headphones, but so what?  It's chump change to Apple.  it's like Apple buying a stick of gum.  That's how it should be viewed.

post #71 of 114
Quote:
Originally Posted by AZREOSpecialist View Post

Tim Cook once said that he will never hire a "VP of innovation" because doing so would mean there was a problem at Apple. Well, what do you think he's doing with his recent hires? He is offloading the task of ideation to others and managing the scene.

No. Why do you think that? Who is Apple's VP of innovation? Ahrendts? Browett?

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post #72 of 114

This is what Apple just paid billions for? Watch this video and then tell me, why would Apple pay a dime for this individual?

 

post #73 of 114
I think this deal would be fantastic and would prove that Tim Cook really understands where his business is going. For Apple to continue to sustain it's high profits, brand appeal is just as important or maybe even more important than product (differences in product capability will dwindle over time). There will need to be multiple brands and multiple distribution channels. Like it or not, this may mean embracing cultural trends that are not popular with some in its traditional base. Note that Apple did not grow to its current size by limiting itself to its traditional base, and music was a core driving force. As to comments regarding the quality of the Beats products, remember that Apple currently sells these products in its stores today. An interesting rationale for the deal can be found over at TechCrunch (Apple Wants Beats Music Because Transitioning iTunes To Streaming Could Kill Download Sales).
post #74 of 114
Quote:
Originally Posted by drblank View Post

What's hysterical is that the music/movie sales/profits is such a small part of Apple's business model, I think this whole thing is overhyped. Beats may sell a bunch of headphones, but so what?  It's chump change to Apple.  it's like Apple buying a stick of gum.  That's how it should be viewed.
Sure it's chump change for them but doesn't mean it's a good move. I suppose at worst it's a distraction and might become an embarrassment.

When I first read these rumours I thought Beats would be Apple's Nest or Motorola, getting suckered into overpaying. But the new rumours make it sound more like Apple's own Alicia Keys.

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
Reply

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
Reply
post #75 of 114
You may think that this video will conjure negative reactions in people who think as you do, and this type of language is certainly not my style. However, this gentleman has built up a net worth of hundreds of millions of dollars through legitimate business dealings. That should say something about his business acumen, connections, and his potential value to Apple.
post #76 of 114
This is getting to sound more and more stupid.

$3.2b for 2 guys who has no loyalty to anyone except themselves.

How will Apple get them to stay if one day they decided to leave and with all the Bs these guys are set for life without work.
post #77 of 114
Quote:
Originally Posted by Tulkas View Post


Sure it's chump change for them but doesn't mean it's a good move. I suppose at worst it's a distraction and might become an embarrassment.

When I first read these rumours I thought Beats would be Apple's Nest or Motorola, getting suckered into overpaying. But the new rumours make it sound more like Apple's own Alicia Keys.

 

I don't know what to say. If anything, it's certainly getting a lot of free publicity.

 

I think that the headphone market is saturated with a LOT of companies making a lot of products.  I personally don't wear headphones and I only listen to ear buds only on rare occasions when I'm somewhere with my iPad and I want to listen to movies, watch YouTube or maybe a song or two, but most of my listening to music is done on a regular stereo which is what i personally prefer.

 

The big problem I see in the content sales/subscription/rental is that it's VERY low profit margin and Apple has to be VERY careful as to not have too much of their Net Profit pie with too much low margin business as it destroys the company's overall profit margin.  I think if Apple split off the iTunes Store into a separate company, it would show people how little profit margin it actually makes and how the rest of the company's profit margins would increase a couple of points.

 

Maybe that's something up their sleeve.  Who knows.

post #78 of 114
Quote:
Originally Posted by Constable Odo View Post
 

 

So, I think Iovine and Dr. Dre will be good for Apple strictly as advisers and mostly given free reign.  I don't know their individual personalities, but maybe true artists never fit that well into a corporate environment.  These two guys are leaders and are capable of working on their own instead of blindly following orders.  I wouldn't think that Steve Jobs would have fit in a corporate environment because he didn't take crap from anyone and did his own thing.  Steve definitely wouldn't have been considered a team player if that's what you're talking about by fitting into a corporate environment.

Yes, but they could hire them as advisors for much cheaper. Hell, 100 million per year for ten years EACH would be cheaper.

post #79 of 114
Quote:
Originally Posted by Proximityeffect View Post
 

Yes, but they could hire them as advisors for much cheaper. Hell, 100 million per year for ten years EACH would be cheaper.

 

In order to hire them, they have to buy Beats.  That's the scam.

post #80 of 114

WTF is a "special adviser"? What sort of "special advice" will such a person offer that's so much more "special" than the advice that thousands of highly talented and creative people at Apple give every day (and are expected to)? If said "special advice' is only "special" because it's "different,"  isn't there the temptation to offer something "different" only to justify and validate one's expense? And could such "different" "special advice" lead Apple astray from the core values and accomplishments that have been the foundation of its current success with its users?

 

I'm not buying it. Hiring somebody to be a burr under the saddle is only going to piss off the horse.


Edited by Kibitzer - 5/22/14 at 7:11pm

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