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Beats Electronics was created in 2006 by Dr. Dre and Jimmy Iovine. They focused on premium speakers and headphones. In 2011, it was estimated they had over 60% of the $100+ speaker market. On August 1, 2014, Apple acquired the company for $3 billion in cash and stock. It was the largest acquisition in Apple’s history.

After being acquired by Apple, Beats Music (a Spotify competitor) was shut down and many of its features found their way into Apple Music. Apple continues to release products under the brand today.

Current Products:

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Google begins displaying “Listen Now” ads for streaming music services (including Beats) in search results

Google appears to be experimenting with new “Listen Now” ads in search results for streaming music services including its own Google Play Music and competitors like Apple’s Beats Music. The Wall Street Journal first noticed the ads and confirmed the new format with Google:

The ads appear in searches on personal computers as well as mobile devices and are performing well for some advertisers, according to one person familiar with the results. Music services previously could have bought similar ads, but the grouping, display and labeling are new. “We’re happy to help users quickly find legitimate sources for their favorite movies, music and more via Google search,” a Google spokesman said.

Google also confirmed to The Wall Street Journal that the music services pay per click just like traditional ads it displays in search. Along with its own Google Play service and Apple’s Beats Music, the Listen Now section is also currently showing ads from Rhapsody and Spotify. 

Google has experimented with other types of links for content in search results including “Watch Now” links for movies and tv that direct users to its Google Play service. It also recently laucnhed app indexing on Androidwhich displays a button for users to quickly launch apps from search results. 

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Apple formally takes ownership of 13 percent of Beats from Vivendi/Universal Music Group

Apple’s $3B acquisition of Beats was never going to be completed overnight, and it’s only today that Apple actually completed its purchase of the 13 percent of the company that was owned by Vivendi/Universal Music Group, the world’s largest record label.

In a one-sentence press release, Vivendi announced that the sale of its shares had been completed for a total of $404M. It was expected that Apple would have acquired all of the Beats shares by the end of September, but based on the formal welcome message, it appears this may complete the sale.

While Wall Street may have been unimpressed by the acquisition, Tim Cook described it as an exciting new chapter in Apple’s history, and Eddy Cue said that the deal would help music grow again.

Apple is in the process of determining which Beats staff will join Apple, and which positions will be eliminated.

Heads rolling at Beats as Apple eliminating redundant positions, Ian Rogers & Trent Reznor to stay on

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As Apple’s acquisition of Beats Electronics and Beats Music nears completion this financial quarter, the Cupertino and Culver City, California-based companies have begun work on transitioning select employees and technology resources from Beats to Apple, according to sources briefed on the transition. Apple executives have visited Beats’ Southern California headquarters this week and last week to offer groups of employees positions at Apple and to notify some members of the Beats staff that they will not be included in the transition.

Many Beats employees in development and creative roles have been offered positions at Apple. Many of these employees will be offered space in Apple’s Cupertino offices, but Apple is said to plan to retain the Los Angeles-area offices, and select engineers on the Beats Music streaming service will continue working out of Southern California. An email from Apple CEO Tim Cook detailed earlier this year that Beats hardware employees would transition to Phil Schiller’s team in Cupertino, so it seems likely that the headphone and speaker makers will make up the majority of the new Cupertino staff…


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Bose files lawsuit against Beats Electronics over noise-cancelling technology patent

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Update: Statement from Bose regarding the complaint below the fold…

Bose has filed a legal complaint against Beats Electronics over the use of noise-cancelling technology used in their headphones, according to CNBC. Apple, of course, announced earlier this year plans to acquire the headphones maker in a $3 billion deal, which it expects to gain regulatory approval for by the end of September.

Re/code reports that Bose has filed a request with the International Trade Commission to ban the sale and import of certain Beats products. The following patents owned by Bose appear to be relevant in the complaint:
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EU regulators plan to decide on Apple’s Beats deal by July 30th

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Before the Apple and Beats marriage can really be official, the two companies must first gain regulatory approval from various governing bodies where the companies conduct business. Apple included the following expectation in its official press release announcing the deal: Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.

For Apple, having regulatory approval and closing the transaction by the end of fiscal Q4 means it expects everything to be in order by the end of September. According to a Reuters report, regulators in the European Union will announce their decision on the deal by July 30th next month.
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Kanye West complains Apple trades iTunes placement for live appearances instead of paying artists (Video)

Kanye West hasn’t been shy when it comes to expressing his opinions about Apple. Earlier this week he sat down for an interview with AdWeek and noted he thought Samsung’s deal last year with Jay-Z might have influenced Apple to invest in pop culture through its purchase of Beats. Above, Kanye expands on that thought in an interview with Bloomberg during the Cannes Creativity Festival. In the interview, while explaining that he thinks Apple didn’t see the value in investing in pop culture before the Samsung deal with Jay-Z, Kanye drives the point home by noting Apple offered artists “extra space on the iTunes page” instead of paying them to perform at the iTunes Festival.

We already knew that Apple wasn’t paying artists to perform at its iTunes Festival, which arrived in the U.S. for the first time this year during the SXSW festival in Austin, Texas. Kanye previously called out Tim Cook during one of his usual onstage rants earlier this year, but we didn’t know Apple was offering artists prime real estate on the iTunes store in exchange for their performances.

Kanye’s full quote is below:

“It showed, now that Steve has passed… It showed a number one company the importance of connecting with culture. And I know you might of heard about this thing where I was on stage calling Tim Cook out and saying why do you have these guys performing at SXSW and you don’t want to pay them. You just want to give us extra space on the iTunes page and stuff. Meanwhile, Samsung realized, the whole point of what we’re saying, is that no you have to go and pay these guys. And that culture and creativity is worth something. The best thing about the fall of Blackberry and the rise at Apple is the win for creativity…

World Cup players not allowed to wear Beats in stadium during games due to FIFA/Sony deal

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Despite having what some consider the best ad celebrating the World Cup this year, Beats headphones cannot be worn by players in the stadium during the games or media events according to Reuters. The rule is implemented by FIFA, the international governing body over the sport, due to a licensing agreement with Sony which obviously competes with Beats in the headphones space. Despite the apparent ban this year, Beats has still been able to leverage the World Cup as an opportunity to pick up some product endorsements…
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Kanye West rants, credits Samsung and Jay Z with Apple/Beats deal

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Noted marketing and branding genius Kanye West said in an Adweek interview published today that the recent deal between Apple and Beats Electronics only came about because Apple rival Samsung inked a deal with Jay Z. In Kanye’s view, this makes all the sense in the world.

According to West, who is a dedicated Apple fan and dislikes Samsung, the Korean phone maker earned substantial “cultural credibility” with the public when it signed a promotional deal with hip hop artist Jay Z last year. Oh, and that time Kanye joined Jay Z at a Samsung-funded concert a few months ago probably helped, too.


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Beats releases exclusive new Jay Z + Beats by Dre Jungle Remix World Cup ad

[youtube=https://www.youtube.com/watch?v=XVp-JDOUphc]

This ‘Game Before the Game’ commercial is shorter and ‘beats’ the one that Apple CEO Tim Cook said captured the World Cup perfectly. It began airing last night and will only be available on Beats music.

The strategy of Beats releasing music exclusively was a possibility surmised following Apple’ $3 billion purchase of Beats on May 28th which also included Beats co-founder and former Interscope Records Chairman Jimmy Iovine joining Apple. In fact, will.i.am, a Beats co-founder with a stake in the company, said in a recent Billboard interview that he had raised that very possibility a year ago to Iovine.

Less LeBron in this one too.

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Discounted Beats Music gift cards yield 25% off subscription fees, 1 year for $75 or less

From 9to5Toys.com

If Apple’s Beats acquisition prompted you to fire up a free trial of the music service then its probably just about to run out. Luckily, Target is running a promotion on Beats Music gift cards, which you can leverage to sign up for the service at a discounted rate.

For a limited time, you can get 25% off Beats Music $50 and $25 gift cards (and REDcard holders save an additional 5%). Standard Beats Music prices recently dropped to $9.99 per month or $99.99 per year. That means you can get a year of Beats for just $75 if you buy two $50 gift cards and $70 if you use a Target Red Card. This is the first general discount we’ve seen for Beats Music. Please note that these cards cannot be combined with any other subscription offers.

Listen to over 20 million songs on your iPhone, iPad, Sonos speakers, Android devices, and more. Beats Music has quickly become a favorite streaming service amongst music lovers.

Since Apple announced its planned acquisition of Beats, it has pledged its devotion to the Beats Music service. The Android app was just updated this week with several features including the ability to save offline downloads to an external SD card

[youtube https://www.youtube.com/watch?v=0qfdzjmPDr8]

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Beats Music on Android gets first feature update post-Apple acquisition announcement

When Apple announced its $3 billion acquisition of Beats last month, the company said it had no intentions of killing off the Android version of the app, with Tim Cook saying “It’s all about the music.” This evening, Beats announced a hefty update to its streaming app on Android. The update bumps the app to version 1.1 and includes a variety of features and changes that users have been calling for since the initial release. This is the first feature update the app has gotten since Apple announced it will acquired the company.


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WSJ profile describes obsessive Dr. Dre as ‘cultural barometer of what is cool’ like Apple founder Steve Jobs

In a profile of one of Apple’s newest employees, The Wall Street Journal has described hip-hop artist Dr. Dre of Beats Electronics as obsessive in a Steve Jobs kind of way while maintaining a clear instinct for what customers want without relying on market research.

But behind the scenes, Dr. Dre—whose real name is Andre Young —has quietly played an equally powerful role developing and protecting the Beats brand, eschewing market research for gut instinct at every turn. Though his main obsession is perfecting the sound of the company’s signature high-end headphones, the 49-year-old fitness-obsessed music producer weighs in decisively on everything from TV ads and font styles to the wordiness of descriptions on the Beats Music streaming service.

As one colleague says, Dr. Dre serves as Beats’ “cultural barometer” of what is cool.

But Dr. Dre’s process is mysterious, colleagues say: His assessments are usually immediate, personal and articulated sparely. He often dismisses ideas such as posing for clichéd photos in a recording studio as too “corny” or “cheesy.” Or he’ll wave them off with a terse “I’m not feeling that.”

[…]

That could portend friction at his new employer, Apple, which agreed to buy Beats for $3 billion last month. But like Dr. Dre, Apple has also boasted about not doing market research. The company’s late founder, Steve Jobs, made no secret of his belief that consumers don’t really know what they want until someone else shows it to them. Colleagues predict that at Apple Dr. Dre could also cede some decision-making power and become more accommodating.

Dr. Dre has resisted much of the limelight since the Beats acquisition by Apple was announced leaving many of the interviews and spin to his Beats co-founder Jimmy Iovine and Apple’s Eddy Cue. The WSJ noted he declined to be interviewed for the above profile, and that decided exclusivity, too, is reminiscent of Jobs.

Dr. Dre did participate in a WWDC demo earlier this week, though, accepting a phone call from Apple’s SVP of Software Engineering Craig Federighi. Even that bit has parallels with the Steve Jobs days at Apple as Dr. Dre previously cameoed in a demo with the Apple founder.

Apple makes a cameo in Beats’ epic World Cup ad (Video)

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Apple’s iPhone and MacBook both made appearances in Beats’ new headphones ad celebrating the World Cup. Apple, of course, announced that it is buying Beats Electronics for $3 billion last week, a deal it expects to be approved by the end of September, and featured a Beats plug earlier this week at WWDC when Dr. Dre was phoned in to the keynote and Eddy Cue was photographed wearing Beats headphones…
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Apple introduces MFi specs for Lightning cable headphones, support arriving in future iOS update

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We’ve learned Apple has quietly introduced a new specification for manufacturers in its Made-For-iPhone/iPad/iPod (MFi) program that allows them to create headphones that connect to iOS devices using a Lightning connector instead of the usual 3.5mm headphone jack. Apple has not flipped the switch on the audio input support for Lightning cables and existing iOS devices, but it will release a software update in the future that will enable support in devices running iOS 7.1 or later.
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Review: Beats Studio Wireless headphones (and what Apple can improve)

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A few weeks before initial reports that Apple was planning to acquire Beats Electronics, I started AT&T’s three month trial of the Beats Music subscription streaming service.. Given that generous window of time, I felt more comfortable investing my time than I would with a one or two week trial. When news broke that Apple was in final talks to purchase Beats, I was caught off guard and immediately concerned that the subscription service that I was starting to really like would change under Apple’s watch. Since the deal has been made official, Apple has said that Beats Music will continue as it is (across multiple platforms even) as will the headphones line (Beats branded, not Apple branded) for now.

Because I was rather surprised by the appeal of Beats Music and Apple is now endorsing the headphones more than ever (even if only really for their massive profit margins), I got really curious Friday afternoon to try out a pair of Beats headphones first hand so I did just that. I’ve been using the Beats Studio Wireless headphones (Amazon) just about all waking hour of this weekend, and below you can read my thoughts on one of the products included in Apple’s biggest acquisition to date.
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Rdio music streaming service adds push notifications to iOS app

Subscription music streaming service Rdio updated its iPhone and iPad app today with one notable new feature for version 2.5.9: Push Notifications.

The new push notifications feature will allow you to get notified for a number of different activities within the app such as music that’s being shared with you, subscribers to your playlists, new followers, and more. You’ll also be able to select which notifications you’d like to receive if you, for example, only want to know when users share new music with you and not every time someone subscribes to one of your playlists.

The app also includes “various UI improvements and minor bug fixes” in the latest release.

Version 2.5.9 of the Rdio app for iPhone and iPad is available on the App Store now.

What’s New in Version 2.5.9

– Push Notifications. Get notified on your mobile device about the activities of your choice, such as music shared with you, new followers, subscribers to your playlists and more.
– Various UI improvements and minor bug fixes.

Wall Street unimpressed by Beats acquisition: “Not what we want to see”

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Judging by a roundup in The Wall Street Journal, analysts and investors appear not to share the enthusiasm for Beats acquisition express by Tim Cook and Eddy Cue. While Cook said he was “excited […] about this new chapter in our history” and Cue believed that “combining the two companies will help [music] grow again,” Wall Street is more skeptical.

“To see this kind of money spent for a company that gets most of its revenue from hardware business is not what we want to see,” said Dan Niles, chief investment officer of hedge fund AlphaOne Capital Partners …


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Cue praises Beats curated playlists and headphones; Iovine disses Apple’s EarPods

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(Image via Re/code)

It’s typical in any acquisition for both parties to sing the praises of their new partner, and Eddy Cue was certainly playing his part at Re/code’s Code Conference, saying that Beats’ curated playlists were a key strength and would help music grow again. As Mark Gurman reported in his live blog coverage at Code Conference:

Cue said Apple bought Beats because “music is dying. It hasn’t been growing.” He said combining the two companies will help it grow again […]

Cue said what makes Beats good is that it provides users with curated playlists.

He said: “When you bring what Beats has got and what we’ve got it’s not two plus two is four. It’s something much more than that” …


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Cue: The current TV experience “sucks,” billion-dollar Apple TV business will get bigger this year

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Speaking at Code Conference Wednesday night, Apple’s head of online services Eddy Cue took a swipe at the current state of television and presented his take on where the future of that industry lies. According to Cue, Apple TV sales have risen in recent years and over 20 million of the set-top box have been sold to date. Cue says that the device is billion-dollar business now and is expected to continue growing.

However, the Apple TV isn’t a true TV replacement. Cue took a few moments to point out just how much using TV “sucks” and bemoan the current range of DVR devices. He even went so far as to compare current technology with the VCRs of a bygone era—and he’s not wrong. Cue cited drawbacks such as having to remember to set a recording or trying to manage storage on the recorder as reasons on-demand streaming through the Apple TV is growing in popularity.

That’s not to say he’s especially fond of today’s on-demand systems either, though. Not only did Cue have sharp criticisms for modern recording tech, he even jabbed at the streaming experience on the iPad, noting that the process of authenticating with a cable provider to access streaming content is less-than-ideal. So what’s his solution?


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HP planning ‘aggressive line-up’ of new Beats Audio products through 2015 as Beats’ design firm replaced by Apple

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With Apple officially announcing its plans to acquire Beats Electronics for $3 billion, HP’s partnership with Beats will soon expire and new products with the Beats Audio technology and branding will become a thing of the past. HP tells CNET that it will continue to sell hardware marketed with Beats Audio through the end of next year and it has the rights to make new Beats Audio products this year:


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Declining iTunes sales underline need for Apple to launch a subscription music service

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Declining iTunes sales highlighted by Morgan Stanley’s Katy Huberty and reported by Fortune appear to underline the need for Apple to move beyond sales of music downloads and into the subscription music business. iTunes sales are down 24 percent year-on-year.

While the slack is being picked up by app sales – a trend previously noted by Asymco’s Horace Dediu – that falling blue line reflects the wider shift in consumer behaviour from purchasing downloads to subscribing to streaming services noted last year by Billboard magazine … 
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Report: Apple drops Beats deal to $3B, cites low subscription numbers, due diligence

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Earlier this month, reports emerged claiming that Apple was in negotiations to buy headphone and streaming music company Beats for $3.2 billion, making it Apple’s largest deal in history. According to a new report out of the NY Post, Apple has recently dropped the price its willing to pay for the company to $3 billion. It’s unclear as to what exactly caused Apple to lower its offer, but a report last week broke down a variety of reasons as to why the deal could be delayed. One of the reasons was a vulgar video from Dr. Dre, that apparently “freaked” Apple out. It’s also possible that a leaked report claiming that Beats only had 110,000 paying subscribers made Apple even more skeptical.


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Beats acquisition could be delayed for a variety for reasons, including Dre’s early ‘announcement’ video

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While it was previously reported that the Apple buyout of Beats Electronics was supposed to be announced this week, Billboard has compiled a list of five different reasons the deal isn’t yet finalized according to its own sources.

A few of these potential hold-ups include issues determining Beats’ valuation and issues with finding a place for Dr. Dre and Jimmy Iovine to fit into Apple’s corporate structure. According to one of Billboard’s sources, Apple’s executives were “freaked out” by the video that surfaced a few weeks ago of Dr. Dre and Tyrese Gibson (accidentally) confirmed that a deal was in the works.


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Spotify CEO: I’ve always assumed Apple would offer a streaming service

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If Apple does indeed reach a deal to acquire Beats Electronics and announce it this week as expected, the clock is once again counting down to offer up your take on the whole scenario before it’s actually official. Steve Jobs’ biographer Walter Isaacson got that opportunity earlier this week thanks in part to Dan Lyons of Fake Steve Jobs fame; Isaacson told Lyons he believes the expected $3.2 billion acquisition by Apple is all about creating a world class video service led by Beats’ co-founder Jimmy Iovine.

But when you think about Beats and what the company has to offer for Apple, the subscription music service launched by the company in January earlier this year comes to mind. Spotify, of course, dominates in this space as seen by the company’s announcement today that they now have 10 million paid subscribers and 40 million active users.
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