Beats Music had 110K subscribers in March with impressive free-to-paid conversion

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  • Reply 21 of 141
    quansterquanster Posts: 34member
    ... but $3.2 billion?

    And how much money did Nest make before it got bought out? 1 billion in sales for 3.2 billion is not expensive. Why are people so stuck on the price. And btw Beats sale is still growing. They have not lost their allure at all.
  • Reply 22 of 141
    solipsismxsolipsismx Posts: 19,566member
    ... but $3.2 billion?

    I don't understand the question. It sounds like you're assuming that because there is an article on Beats Music's paid subscribers growing that it means the rumoured deal must only be about their rental music service. Clearly the bulk of their rumoured revenues and profits are from their HW sales, but Beats Music growing quickly could mean that their service is truly better because of their algorithm which I would like to be brought into iTunes Genius for the music I own.

    quanster wrote: »
    And how much money did Nest make before it got bought out? 1 billion in sales for 3.2 billion is not expensive. Why are people so stuck on the price. And btw Beats sale is still growing. They have not lost their allure at all.

    That's an excellent point. If you look at the revenue and profits and then compare that to how much the purchase price is Beats Music is a steal compared to Nest, Motorola, Occulus, Instagram and many others we've seen. Was Siri or Lala making any profit when Apple bought them? Comparatively Beats looks like the only sane purchase in the bunch.
  • Reply 23 of 141
    But but but what is Dr. Dre's real name? Without it, I have no context to this story! /s
  • Reply 24 of 141
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by quanster View Post





    Yea really. There is that double standard again. White people can drop F bombs with no problem but if it is a black man then he is a thug and etc. If I just became a billionaire, I would drop a couple of F bombs myself.

    I don't care about any F bombs.

     

    I'm not black, but I don't like people who use the N word in every sentence. It doesn't matter to me if it was a KKK member using that word or if it's a rapper, I don't think highly of either.

     

    And people do use that word in public, I hear it all of the time. I find it to be rude and I find the people who use it to be trashy.

  • Reply 25 of 141
    island hermitisland hermit Posts: 6,217member
    Quote:

    Originally Posted by quanster View Post





    And how much money did Nest make before it got bought out? 1 billion in sales for 3.2 billion is not expensive. Why are people so stuck on the price. And btw Beats sale is still growing. They have not lost their allure at all.

     

    Well, I can't see Apple being interested in the headphones at all. I would imagine that division will be spun off as its own company at some point or sold to someone else.

     

    ... and, please, for your sake, don't bring up Nest. If you do that then you'll have to bring up Motorola as well.

  • Reply 26 of 141
    island hermitisland hermit Posts: 6,217member
    Quote:

    Originally Posted by SolipsismX View Post





    I don't understand the question. It sounds like you're assuming that because there is an article on Beats Music's paid subscribers growing that it means the rumoured deal must only be about their rental music service. Clearly the bulk of their rumoured revenues and profits are from their HW sales, but Beats Music growing quickly could mean that their service is truly better because of their algorithm which I would like to be brought into iTunes Genius for the music I own.

    That's an excellent point. If you look at the revenue and profits and then compare that to how much the purchase price is Beats Music is a steal compared to Nest, Motorola, Occulus, Instagram and many others we've seen. Was Siri or Lala making any profit when Apple bought them? Comparatively Beats looks like the only sane purchase in the bunch.

     

     

    Apple isn't interested in the hardware sales. Maybe as a spin off, a flip, but that's about it.

     

    I suppose if Apple was able to get $1 billion or more from the hardware side it would make the streaming business seem a bit more attractive.

     

    By the way, do you think that any Beats contracts will be transferred in the deal? I, for one, don't.

  • Reply 27 of 141
    solipsismxsolipsismx Posts: 19,566member
    apple ][ wrote: »
    I don't care about any F bombs.

    I'm not black, but I don't like people who use the N word in every sentence. It doesn't matter to me if it was a KKK member using that word or if it's a rapper, I don't think highly of either.

    And people do use that word in public, I hear it all of the time. I find it to be rude and I find the people who use it to be trashy.

    1) I don't think KKK members and musicians that perform a certain of genre of music shouldn't be at opposing ends of a scale.

    2) What about the words nincompoop and scallywag? These used to be highly offensive, as were pretty much anything that blasphemous but if someone says "Oh God!" in public it doesn't seem to raise an eyebrow in most circles.

    3) The fact that we have a series of phonemes that considered offensive regardless of its usage, meaning or intent is ridiculous to me. How is we can be so irrational as to be filled with negative emotion from having a momentary utterance of a sound resonate off our auditory system, but if someone uses a more subtle term with the now common subtle racism and bigotry (except on the internet of course) we don't bat and eye. Are we really that superficial and ignorant to think the letters that form the word or the sound it makes are the problem as if words can truly be cursed. I didn't think we were living in the dark age.
  • Reply 28 of 141
    solipsismxsolipsismx Posts: 19,566member

    Apple isn't interested in the hardware sales. Maybe as a spin off, a flip, but that's about it.

    I suppose if Apple was able to get $1 billion or more from the hardware side it would make the streaming business seem a bit more attractive.

    By the way, do you think that any Beats contracts will be transferred in the deal? I, for one, don't.

    1) How do you know what Apple is interested in?

    2) So what if they are not buying them for their HW and they spin that off, the point still remains that the HW side is rumoured to making a lot of money and growing. In no way does it mean that the HW side nullifies itself and the rumoured $3.2 billion cost means they have make it all up with Beats Music subscriptions.

    3) Based on the information we've received selling the HW side for $1 billion would make this a bad deal.

    4) Usually music contracts aren't transferable. However, as a new startup with Dre and Iovine at the helm I think if anyone could have pulled off a deal with the labels to allow the contracts to be transferable it's them.
  • Reply 29 of 141
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by SolipsismX View Post



    I didn't think we were living in the dark age.

     

    If you think that it's just a word, then walk up to a bunch of black kids standing around and say that word, and then see what happens. Are you attempting to argue that N..... is no longer offensive?

     

    And I do believe that some people are living in the dark ages.

  • Reply 30 of 141
    island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by SolipsismX View Post





    1) How do you know what Apple is interested in?



    2) So what if they are not buying them for their HW and they spin that off, the point still remains that the HW side is rumoured to making a lot of money and growing. In no way does it mean that the HW side nullifies itself and the rumoured $3.2 billion cost means they have make it all up with Beats Music subscriptions.



    3) Based on the information we've received selling the HW side for $1 billion would make this a bad deal.



    4) Usually music contracts aren't transferable. However, as a new startup with Dre and Iovine at the helm I think if anyone could have pulled off a deal with the labels to allow the contracts to be transferable it's them.

     

    1. How do you know what Apple isn't interested in?

     

    2. I covered that.

     

    3. Exactly.

     

    4. Then the contracts will most likely be re-written. Dealing with Dre and Iovine's money is different than dealing with Apple's money. Anyone in business would be a fool not to want more.

  • Reply 31 of 141
    solipsismxsolipsismx Posts: 19,566member
    apple ][ wrote: »
    If you think that it's just a word, then walk up to a bunch of black kids standing around and say that word, and then see what happens. Are you attempting to argue that N..... is no longer offensive?

    And I do believe that some people are living in the dark ages.

    It is just a word. We give the word meaning. We give a word power. There is nothing innate about six specific letters or phonemes in a row. It's a learn reaction. As previously mentioned the examples I gave now range from mundane to comical but at one time society considered them offensive. All words are invented, despite what [@]drblank[/@] wants to believe. Language (like music) is neither static nor contained.
  • Reply 32 of 141
    island hermitisland hermit Posts: 6,217member
    Quote:

    Originally Posted by Apple ][ View Post

     

     

    If you think that it's just a word, then walk up to a bunch of black kids standing around and say that word, and then see what happens. Are you attempting to argue that N..... is no longer offensive?

     

    And I do believe that some people are living in the dark ages.


     

    Hell, I told someone in their 30s the other day that, "I don't give a shit."... and they got up in my face for swearing at them. Dark ages.

     

    The N word would definitely go the wrong way.

  • Reply 33 of 141
    solipsismxsolipsismx Posts: 19,566member
    1. How do you know what Apple isn't interested in?

    2. I covered that.

    3. Exactly.

    4. Then the contracts will most likely be re-written. Dealing Dre and Iovine's money is different than dealing with Apple's money. Anyone in business would be a fool not to want more.

    1) I'm not making any absolute claims as to what Apple is or interested in. If you wanted to state that as opinion it was easy enough, "In my opinion I don't think Apple is interested in the hardware sales."

    2) It read to me as if you were ignoring that when you answered a comment about the growth of Beats Music in a month with the entire rumoured sale of the company for $3.2 billion.
  • Reply 34 of 141
    pazuzupazuzu Posts: 1,728member
    solipsismx wrote: »
    This rumour is looking better and better everyday.

    Right and so was AOL once to Time Warner.
  • Reply 35 of 141
    pazuzupazuzu Posts: 1,728member
    solipsismx wrote: »
    1) I don't think KKK members and musicians that perform a certain of genre of music shouldn't be at opposing ends of a scale.

    2) What about the words nincompoop and scallywag? These used to be highly offensive, as were pretty much anything that blasphemous but if someone says "Oh God!" in public it doesn't seem to raise an eyebrow in most circles.

    3) The fact that we have a series of phonemes that considered offensive regardless of its usage, meaning or intent is ridiculous to me. How is we can be so irrational as to be filled with negative emotion from having a momentary utterance of a sound resonate off our auditory system, but if someone uses a more subtle term with the now common subtle racism and bigotry (except on the internet of course) we don't bat and eye. Are we really that superficial and ignorant to think the letters that form the word or the sound it makes are the problem as if words can truly be cursed. I didn't think we were living in the dark age.

    Rap ruined the Grammys and it will ruin Apple.
  • Reply 36 of 141
    justp1ayinjustp1ayin Posts: 213member
    apple ][ wrote: »
    If you think that it's just a word, then walk up to a bunch of black kids standing around and say that word, and then see what happens. Are you attempting to argue that N..... is no longer offensive?

    And I do believe that some people are living in the dark ages.

    Depends where you're from. I'm from an urban area and we grew up using the n word 30 times a sentence. I back away from it now cause I'm older, but I can still go up to a group of black kids and say "y'all niggas crazy" and they wouldn't mind. We know we don't mean it in a racist way even though it's a horrible word (one that I hope my kids don't use it as freely as we did)

    Disclaimer: I'm Hispanic.
  • Reply 37 of 141
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by SolipsismX View Post



    It is just a word. We give the word meaning. We give a word power. There is nothing innate about six specific letters or phonemes in a row. It's a learn reaction. As previously mentioned the examples I gave now range from mundane to comical but at one time society considered them offensive. All words are invented, despite what @drblank wants to believe. Language (like music) is neither static nor contained.

     

    Of course words are just made up of letters.

     

    Chances are still very high that you would get your ass kicked if you said the wrong words to certain people, and I doubt that they would be interested in listening to any explanation from you about phonemes or how language is not static or contained.<img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

  • Reply 38 of 141
    thx1138thx1138 Posts: 13member

    Dubious comparison.

     

    dmz

  • Reply 39 of 141
    dm3dm3 Posts: 168member
    Not sure how you can combine the words "impressive" with 110k users. That is 0% compared to iTunes 500 million accounts.
  • Reply 40 of 141
    drblankdrblank Posts: 3,385member
    Quote:

    Originally Posted by SolipsismX View Post



    This rumour is looking better and better everyday.

    110 thousand subscribers? WOW.  impressive.  And at what level is it going to level off and will it be profitable at that point?  No one knows the answer to that one.

     

    I still don't know why Apple couldn't get their own subscription model going without wasting $3.2 Billion to get 110,000 subscribers.  If Apple just turned on this service on their own, which they could have done, they would probably see an even faster adoptance level and they already have 800 Million iTunes account holders to convert, so the conversion rate per customer wouldn't have that $3.2 Billion price tag.  Beats doesn't have $3.2 Billion worth of infrastructure.  I wonder how much actual infrastructure they actually have.  I'm also wondering what value they attached to Beats music vs Beats the headphone company.  I see the headphone division the only money maker out of the two.  The music service wasn't making any money and Beats was looking for additional funding per another recent article I linked. So they are paying to acquire a money losing venture along with a money making venture.     The problem is that selling content really isn't that profitable compared to the costs involved.  Even the iTunes store runs at a low Net Profit margin.  Same with Netflix, their movie rental business doesn't make much in terms of profit margin, so the whole chasing the content sales/rental business is a really tough business model. I think Apple should have saved their money and did their own model without buying out another company to do it.  They could have easily done this themselves.  Maybe all they needed was to hire someone else to run the iTunes business to get a subscription service going if the current person couldn't figure it out.

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