Apple's Beats buyout propelled Dr. Dre to the most profitable year of any musician ever

Posted:
in General Discussion edited December 2014
Apple employee, rapper and producer Dr. Dre made an estimated $620 million before taxes this year, making him not only the top earning musician of 2014, but also the highest paid musician in a single year in history.




The rankings released this week by Forbes show Dr. Dre as far and away the No. 1 earner of 2014, earning more than a half-billion dollars more than the second-place earner, Beyonce. In fact, the top ten earners brought in $1.4 billion in pretax earnings last year, with nearly half of that from Dr. Dre alone.

Of course, the bulk of Dr. Dre's earnings didn't come from recording, performing or producing music, but instead from his entrepreneurial side --?specifically, the $3 billion sale of the company he co-founded, Beats, to Apple in May.

While Forbes didn't break down how much the Beats sale contributed to his 2014 earnings, it did specify that Dr. Dre's particularly lucrative year was "thanks largely to that deal." Apple's buyout of Beats also allowed Dr. Dre to make more in one year than any musician ever has in history.

Others on this year's list were legacy acts The Eagles ($100 million), Bon Jovi ($82 million) and Bruce Springsteen ($81 million). The only acts under age 30 to make the top 10 were Justin Bieber ($80 million) and One Direction ($75 million).

Before the Beats purchase was officially announced, Dr. Dre and performer Tyrese posted a video of themselves in the studio celebrating Dr. Dre as "the first billionaire in hip-hop." After the deal became official, Dr. Dre made a cameo appearance during Apple's Worldwide Developers Conference Keynote in June, participating in a phone call with software chief Craig Federighi.

Some industry watchers believe Dr.Dre and his Beats co-founder Jimmy Iovine were the main targets for Apple in the Beats acquisition. With Iovine's storied background in the music business and Dre's "cool factor," the pair could rejuvenate Apple's iTunes, which is seeing increased pressure from streaming radio services like Pandora and Spotify.
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Comments

  • Reply 1 of 65

    Of course, after taxes is a whole different ballgame.

     

    This very handily illustrates that musicians who rely on music sales for income are not going to do as well as those who are fully involved in every aspect of their career. Practical business knowledge goes a long way in every industry.

  • Reply 2 of 65

    Can't wait to see what he does with it.

     

    Dre is a smart business person and has given a bit back to the community.

  • Reply 3 of 65
    Not sure what "Dre's" title was at Beats. But I doubt it's "musician."

    And Apple didn't pay for his music. They paid for a company machine.

    Kind of an unfair accolade compared to others making their money as musicians.

    Sure he made some money as a producer. But that's not What Apple bought.

    And "Beats technology" is basically one mans preferred EQ setting.

    Hopefully the curation lives up to Cook's expectations and the subscription model is sound
  • Reply 4 of 65

    This is stretching it.  Warren Buffett plays the banjo, where does he rank?

  • Reply 5 of 65
    This (and the Apple Beats deal) is actually a very cool thing. Not only was it a smart business move (Apple got a great, profitable company; Dre got a lot of money and a great partnership), but the fact that Apple (who in the eyes of many is associated with the upper middle class and wealthy) was readily willing to validate the work and reputation of Dr Dre (to the tune of $3.2B) will be seen by many as a meaningful gesture of inclusion and alignment with urban culture (and the, largely lower class, population that is part of it). This is not only a great business move on Apple's part, but will also, I believe, play a small part in folding urban culture into the broader American culture. There is a substantial disparity, and an even bigger perceived disparity, between these two aspects of American culture (which most Americans are blissfully unaware of), which is a substantial contributor to the fact that America is #1 in the world in the rate of child abuse, per capita prison population, and teen pregnancy. Anything that can reduce this disparity (or even the perception of disparity) would do a lot of good,* and I congratulate Apple for making this move, regardless of the intentions. (I realize I sound like a hippy, but I'm really not).

    To preempt the invariable criticism of Dr Dre and rap in general, yes, there are some bad (some very, very bad) aspects of it, some of which Dr Dre participated in, but the way to address it is not to dismissively criticize from a distance, but to engage, and that's exactly what Apple is doing. I intend to follow Apple's example. But for those of you just chomping at the bit to make flippant comments about rap music, please save it for getoffmylawninsider.

    *I believe there's a prolific poster on here (BF) that has in his sig the following quote, which I think applies to the Apple Beats partnership:

    "If the young are not initiated into the village, they will burn it down just to feel its warmth"
  • Reply 6 of 65
    9secondko wrote: »
    Not sure what "Dre's" title was at Beats. But I doubt it's "musician."

    And Apple didn't pay for his music. They paid for a company machine.

    Kind of an unfair accolade compared to others making their money as musicians.

    Sure he made some money as a producer. But that's not What Apple bought.

    Dr. Dre is a musician.... and he made a lot of money this year. The most money, in fact.

    I don't see a problem with the way it was worded.

    Jerry Seinfeld is a stand-up comedian. But most of his income comes from the residuals from his old TV show.

    He still ranks as the highest-paid comedian even though most of his money doesn't come from actual stand-up comedy.

    If you have a problem with these definitions... take it up with Forbes :D

    pjohnt wrote: »
    This is stretching it.  Warren Buffett plays the banjo, where does he rank?

    You have to realize what these people are known for.

    Dr. Dre is known for music. And as I said before... Jerry Seinfeld is known for comedy.

    But I don't think Warren Buffett is known for playing the banjo...
  • Reply 7 of 65
    cool factor of apple with this acquisition is off the charts. i look at the pic of the four execs and i think these guys are corporate gods, rather than stodgy old leaders which is what i think when i see a bunch of old white execs from more mundane companies.
  • Reply 8 of 65
    I hate when analyst talk up Dre's cool factor. Not that he is or is not. But the picture of some dick head banker thinking he has any real insight into anything other than his bubble is just, I don't know. A sad kind of funny.
    I pray that didn't even cross apples mind it's just so shallow.
  • Reply 9 of 65
    Dr. Dre is a musician.... and he made a lot of money this year. The most money, in fact.

    I don't see a problem with the way it was worded.

    Jerry Seinfeld is a stand-up comedian. But most of his income comes from the residuals from his old TV show.

    He still ranks as the highest-paid comedian even though most of his money doesn't come from actual stand-up comedy.

    If you have a problem with these definitions... take it up with Forbes :D
    You have to realize what these people are known for.

    Dr. Dre is known for music. And as I said before... Jerry Seinfeld is known for comedy.

    But I don't think Warren Buffett is known for playing the banjo...

    You may not have an issue with a lot of things. Doesn't mean the issue isn't valid.

    Point was Dre's Money wasn't made as a musician. End of story.

    Is he a musician too? Sure.

    But when you make money in one capacity, it's usyslly listed as such.

    Even Dre's "first billionaire in hip/hop" was more accurate since that is his genre, whether earning as a musician, or on the administrative side.
  • Reply 10 of 65
    pjohnt wrote: »
    This is stretching it.  Warren Buffett plays the banjo, where does he rank?

    Exactly.

    I don't know about the truth of that.

    But "dr. Dre" stopped being known as a musician a while back. If album sales were his bread and butter, he'd be a lot leaner today.

    Beats has helped him stay relevant and has brought about a decently designed set of headphones and subscription music service.

    And that's what Apple bought.

    Not heaps of dre songs. Lol
  • Reply 11 of 65
    Quote:

    Originally Posted by PatchyThePirate View Post



    This (and the Apple Beats deal) is actually a very cool thing. Not only was it a smart business move (Apple got a great, profitable company; Dre got a lot of money and a great partnership), but the fact that Apple (who in the eyes of many is associated with the upper middle class and wealthy) was readily willing to validate the work and reputation of Dr Dre (to the tune of $3.2B) will be seen by many as a meaningful gesture of inclusion and alignment with urban culture (and the, largely lower class, population that is part of it). This is not only a great business move on Apple's part, but will also, I believe, play a small part in folding urban culture into the broader American culture. There is a substantial disparity, and an even bigger perceived disparity, between these two aspects of American culture (which most Americans are blissfully unaware of), which is a substantial contributor to the fact that America is #1 in the world in the rate of child abuse, per capita prison population, and teen pregnancy. Anything that can reduce this disparity (or even the perception of disparity) would do a lot of good,* and I congratulate Apple for making this move, regardless of the intentions. (I realize I sound like a hippy, but I'm really not).



    To preempt the invariable criticism of Dr Dre and rap in general, yes, there are some bad (some very, very bad) aspects of it, some of which Dr Dre participated in, but the way to address it is not to dismissively criticize from a distance, but to engage, and that's exactly what Apple is doing. I intend to follow Apple's example. But for those of you just chomping at the bit to make flippant comments about rap music, please save it for getoffmylawninsider.



    *I believe there's a prolific poster on here (BF) that has in his sig the following quote, which I think applies to the Apple Beats partnership:



    "If the young are not initiated into the village, they will burn it down just to feel its warmth"

    You think that Apple, by purchasing Beats by Dre and selling headphones will:

     

    1.) Lower child abuse in the USA

    2.) Lower the per capita prison population in the USA

    3.) Lower teen pregnancy in the USA

     

    Did I read that right? Are you serious?

     

    Why not solve world hunger, and world peace?  

     

    Oh and I am pretty sure Beats by Dre sold by Apple will cure cancer too.

  • Reply 12 of 65
    Quote:
    Originally Posted by TechLover View Post

     

    You think that Apple, by purchasing Beats by Dre and selling headphones will:

     

    1.) Lower child abuse in the USA

    2.) Lower the per capita prison population in the USA

    3.) Lower teen pregnancy in the USA

     

    Did I read that right? Are you serious?

     

    Why not solve world hunger, and world peace?  

     

    Oh and I am pretty sure Beats by Dre sold by Apple will cure cancer too.




    I heard they changed it officially to "Beats by Dr. Dre"...

  • Reply 13 of 65
    9secondko wrote: »
    Dre's Money wasn't made as a musician. End of story.

    And Seinfeld's money wasn't made as a comedian. He made his money from a TV show that ended 16 years ago.

    But Forbes ranks both of those guys as the highest-paid in their fields.

    Like I said... take it up with Forbes. They made the list that you disagree with.
  • Reply 14 of 65
    Quote:

    Originally Posted by SpamSandwich View Post

     
    Quote:
    Originally Posted by TechLover View Post

     

    You think that Apple, by purchasing Beats by Dre and selling headphones will:

     

    1.) Lower child abuse in the USA

    2.) Lower the per capita prison population in the USA

    3.) Lower teen pregnancy in the USA

     

    Did I read that right? Are you serious?

     

    Why not solve world hunger, and world peace?  

     

    Oh and I am pretty sure Beats by Dre sold by Apple will cure cancer too.




    I heard they changed it officially to "Beats by Dr. Dre"...


    Until they officially change the URL I am sticking with Beats by Dre ;)

     

    http://www.beatsbydre.com/  (beatsbydrdre.com redirects)

     

    All kidding aside looking at the apple website they are really pushing the Dr. part aren't they?

     

    Dr.'s without borders by Dre seems like an obvious partnership.

  • Reply 15 of 65
    Quote:

    Originally Posted by TechLover View Post

     

    Until they officially change the URL I am sticking with Beats by Dre ;)

     

    http://www.beatsbydre.com/  (beatsbydrdre.com redirects)

     

    All kidding aside looking at the apple website they are really pushing the Dr. part aren't they?

     

    Dr.'s without borders by Dre seems like an obvious partnership.




    I'd like to know where he got his doctoral degree, personally.

  • Reply 16 of 65

    I'd like to know where he got his doctoral degree, personally.

    Same place as Dr. Phil.
  • Reply 17 of 65

    This is the world we live in today.

     

    We've had the Age of Dinosaurs (allegedly).

     

    We've had the Age of Enlightenment.

     

    And now: 

     

    The Age of Thuggery.

     

    You could almost say we've come full circle.

  • Reply 18 of 65
    Quote:

    Originally Posted by AppleinsiderFrm View Post



    I hate when analyst talk up Dre's cool factor. Not that he is or is not. But the picture of some dick head banker thinking he has any real insight into anything other than his bubble is just, I don't know. A sad kind of funny.

    I pray that didn't even cross apples mind it's just so shallow.

     

    "Because something is happening here

    But you don’t know what it is

    Do you, Mister Jones?"

  • Reply 19 of 65
    Quote:

    Originally Posted by 9secondko View Post



    Not sure what "Dre's" title was at Beats. But I doubt it's "musician."



    And Apple didn't pay for his music. They paid for a company machine.



    Kind of an unfair accolade compared to others making their money as musicians.



    Sure he made some money as a producer. But that's not What Apple bought.



    And "Beats technology" is basically one mans preferred EQ setting.



    Hopefully the curation lives up to Cook's expectations and the subscription model is sound



    What musician only makes money making music?

  • Reply 20 of 65
    Quote:

    Originally Posted by AppleinsiderFrm View Post



    I hate when analyst talk up Dre's cool factor. Not that he is or is not. But the picture of some dick head banker thinking he has any real insight into anything other than his bubble is just, I don't know. A sad kind of funny.

    I pray that didn't even cross apples mind it's just so shallow.



    so you're just going to act like you forgot about Dre?

     

    -a dickhead Banker

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