The fuzz may be about Dr Dre being the first billionaire in the hip-hop industry, but Apple’s acquisition on his Beats by Dre is not about the headphones.
Reports about Apple buying Dr Dre’s headphone and music streaming product came out in the Financial Times Thursday.
However, the real headline is not about the acquisition but about what giant tech company Apple saw in Dr Dre’s product that it decides to buy it for a whopping $3.2 billion.
Apple will buy Beats for its streaming music services. This is to expand Apple’s dominion in the music distribution industry. This deal could easily turn Apple into a recording industry giant. This would let them bring music to their customers without going through the middlemen. However, this is bad news for major record labels like EMI, Universal, Sony and more.
When Apple CEO Tim Cook met with Beats CEO Jimmy Lovine in LA 2013, Cook’s interest was not focused on the stronger bass and the vocal ranges of the headphone, but the Beats app, which was known then as “Project Daisy.”
That app was released to the public back in mid-January and it is getting a lot of positive reviews. The app is not just your regular day-to-day Spotify; it is another music app that can predict the algorithm of your music preferences as of the moment. The app has a lengthy sign up process. If Apple acquires Beats, this process will be compressed into a simple Apple ID registration, while the music preferences algorithm will be amplified.
The Beats app has problems of freezing during streaming and big downloaded files. These can easily be solved by Apple. Which is why, just last week, Beats app got an iPad-friendly update. Apple could also help broaden Beats’ selection library.