US News★Apple Acquires Music Industry "Charisma" in $3 Billion Deal

On May 28, Apple announced it would acquire Beats Electronics, a headphone manufacturer and music streaming service provider, for $3 billion. This marks Apple's largest acquisition to date. As a result of this deal, Beats co-founders Jimmy Iovine and Dr. Dre, who wield significant influence in the music industry, will join Apple.

Beats headphones have gained popularity due to their high fashion appeal and celebrity endorsements. Integration with Apple's already announced "wearable" devices is anticipated. Furthermore, the utilization of Beats' music streaming service is drawing significant attention.

Apple once revolutionized the music market, dominated by CD sales, with iTunes, which allowed song-by-song purchases. However, in recent years, it has been losing market share to unlimited streaming music services. iTunes Radio, launched in September last year as a countermeasure, is reportedly stagnating, failing to curb the momentum of competitors like Pandora and Spotify. Beats Music, led by industry luminaries Iovine and Dre, is a subscription-based streaming service highly regarded for its "curation" feature, which selects tracks based on listener preferences and trends.

Apple CEO Tim Cook stated in a release, "Music is an irreplaceable part of our lives. To continue delivering the world's most innovative products and services, Apple invests and brings together such incredible talent." Iovine added, "Beats was born out of being inspired by Apple's fusion of culture and technology. Deep down, I always knew Beats belonged with Apple."

Source: Ad Age
Apple Acquires Beats for $3 Billion. Here's Why They Should Keep It Ad-Free
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