Industry news
High5 special: Apple-Beats deal
Apple Inc whipped out its fat wallet last week and finally put all the rumours to bed as it acquired Beats By Dre for $3bn. The music industry was alive with speculation as to how this deal would impact the music industry and streaming.
A winning formula?
Many feel it's a winning formula - with Apple's track record and customer base, it's believed that music streaming will now be picked up by the masses. Some believe this deal will even boost the value of music, and emphasise its importance in the 21st century. Read "Music industry optimistic about Apple-Beats deal" to find out what people like Cortez Bryant, Daniel Glass, Yinka Adegoke, and Doc McGhee think about the deal.
Tim Cook's memo
Apple CEO Tim Cook sent a memo to Apple employees shortly after the announcement was made last week. It draws on the emotional connection people have with music, speaks of Jimmy Iovine's relationship with Apple in setting up the iTunes Music Store, and describes the future of Beats Music and Beats Electronics under the Apple Inc stable. Read "Tim Cook's memo to team Apple on Beats deal".
Jimmy Iovine acquisition
Apple has acquired more than just Beats By Dre - they've also got their hands on one of the entertainment industry's leading experts, Jimmy Iovine, who they hope will help fix the "dying" music industry. Iovine hopes the deal will bridge the gap between Silicon Valley and Hollywood. Read "Apple hopes Beats co-founder's 'ear' can help amid 'dying' music industry" to find out more about what Iovine brings to the Apple-Beats table.
Combining hardware and software
Apple's purchase of Beats By Dre was two-fold - the music streaming service and the electronics division. What does this mean for the music streaming industry? Well, that's also two-sided: Apple will make music streaming mainstream, but they could influence the cost - that is, drive it downward. For streaming companies not also partaking in the hardware pie, a drop in price may spell more debt as they struggle to reach the profit line. Read "Apple's Beats buy is two-sided for music streaming" to find out more about how Apple bases its success on combining its hardware and software entities.
Whay would Steve do?
Does Tim Cook sit up in Apple HQ pondering, 'What would Steve do?', whenever he has to make a big decision for the company? Perhaps... Walter Isaacson, author of the Steve Jobs biography thinks Cook has got it spot on with the Beats deal. He thinks Jobs' love for music and his strong relationship with Jimmy Iovine would have seen him sign the dotted line. Read "Isaacson: Why Steve Jobs would've done Beats deal" to hear out the author's insights.
