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May 10, 2014

Apple Acquisition of Beats Almost Makes Music Sense

Apple seeks to compete with Spotify with their recent acquisition of Beats and Beats Music

When seemingly credible rumours surfaced two days ago that Apple was in the final stages of a £1.9 billion (US$3.2 billion) acquisition of headphone maker Beats by Dre, the world scratched its head. Now that a little time has passed, the deal is starting to make sense – sort of.

Since its launch in 2008, Beats has taken the world by storm. The premium headphone maker controls 59 percent of the high-end market and generated £590 million (US$1 billion) in revenue this past year. It also has a small music streaming service with approximately 200,000 subscribers.

The headphones are [...]

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