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Apple reportedly very close to buying Beats Electronics for $3.2B
Posted on 5/9/14 at 6:28 am
Posted on 5/9/14 at 6:28 am
Posted on 5/9/14 at 8:17 am to The Egg
Two companies that sell standard electronics at inexplicably high markups - a match made in heaven?
Posted on 5/9/14 at 8:32 am to The Egg
I've never understood the fascination with Beats... They are the Bose of headphones
Btw, sounds like its a done deal... There's video of Dre and someone else last night saying "Shits changed, first Billionaire Rapper in the game". Its subsequently been pulled
Btw, sounds like this is a play from Apple to get Beats streaming services, not their headphones. I'm not familiar with their streaming, is it any good?
Btw, sounds like its a done deal... There's video of Dre and someone else last night saying "Shits changed, first Billionaire Rapper in the game". Its subsequently been pulled
Btw, sounds like this is a play from Apple to get Beats streaming services, not their headphones. I'm not familiar with their streaming, is it any good?
Posted on 5/9/14 at 8:55 am to Lsut81
quote:
Btw, sounds like this is a play from Apple to get Beats streaming services, not their headphones. I'm not familiar with their streaming, is it any good?
This... Heard it on squawk box this morning
Posted on 5/9/14 at 9:42 am to Lsut81
quote:
Btw, sounds like this is a play from Apple to get Beats streaming services, not their headphones. I'm not familiar with their streaming, is it any good?
itunes streaming supposedly is a flop.
Posted on 5/9/14 at 9:50 am to Hawkeye95
quote:
itunes streaming supposedly is a flop.
I listened to it for all of about 20 minutes until I realized that if an artist doesn't sell their music on iTunes, iTunes Radio wasn't going to play their music. So the "Garth Brooks" channel I was listening to didn't play a single Garth song.
Went right back to Pandora.
Posted on 5/9/14 at 10:13 am to I Love Bama
quote:
Dumbest purchase ever.
Much cheaper than buying Pandora or Spotify. They want to improve their music distribution. It isn't that ridiculous of a purchase. Only time will tell.
Posted on 5/9/14 at 10:18 am to lsu13lsu
quote:
Spotify
Don't they run negative revenues
Posted on 5/9/14 at 10:22 am to Lsut81
I am not sure how that is possible. Negative gross profit? I could be wrong but not sure.
Posted on 5/9/14 at 10:23 am to lsu13lsu
quote:
am not sure how that is possible. Negative gross profit?
Yeah, don't know why I put revenues...
I believe their balance sheet is in the red
Posted on 5/9/14 at 10:31 am to Lsut81
I am not sure about Spotify but thinking about the business model it was hard for me to imagine them being profitable. It seemed like they were providing a lot for a little. Many start-ups are unprofitable though and become successful.
Posted on 5/9/14 at 12:37 pm to lsu13lsu
quote:quote:
Dumbest purchase ever.
Much cheaper than buying Pandora or Spotify. They want to improve their music distribution. It isn't that ridiculous of a purchase. Only time will tell.
Consumers don't want to own content anymore. We're too fast paced. Consumers want steaming because of perceived value. Companies have realized they can skim and churn the same product continuously. Telecoms and ISPs like it because the data usage keeps them in business.
Since iTunes radio isn't all that great, this gives them a refresh in that area. Companies like Pandora and Spotify and SiriusXm will struggle because of fragmentation and costs. Apple already has those two things under control because of its ecosystem and its already the big boy on the block.
The bigger concept that this will play into is payments. Through iTunes, I purchase or rent my content... and because of the ease of use (people are like electricity. we take the path of least resistance.), I have subscriptions to magazines and Hulu that I wouldn't have had otherwise because of having to set up accounts and controlling my payments and increasing the exposure of my data.
As a company, I don't want to own the content. It presents the same inventory risk as widgets. I want others to own the content. I want to control the user interface and the user experience which Apples vastly succeeds at and skim off of the transactions of others. Same basic principal of the creation of iTunes (and like Mastercard and Visa). They're just trying to be proactive. Then I want to take that data, and market to my users everything else under the sun and skim those transactions too (somewhat like Amazon and Amex).
The actual headphones portion of this deal goes back to wearables and Apple's path into this area. Imagine having your phone in your pocket with wireless bluetooth headphones controlled by your new watch that has Siri telling you that your heartbeat now matches the song's beat. With those three things, you'd never have to take your phone out of your pocket and it plays back into the original iPod marketing with all of the ads paying up the white earbuds.
Worth $3B? No. Does it make sense? Sure.
That's just my take.
Posted on 5/9/14 at 2:23 pm to Hand
Posted on 5/9/14 at 2:28 pm to AlexLSU
quote:
Apparently spotify is valued at $4billion
But nothing about their profitability...
Posted on 5/9/14 at 3:16 pm to Lsut81
quote:
But nothing about their profitability..
I read an article last year that had their revenue around $500-600 million but posting an $80 million net loss. The entire market for streaming music is puzzling to me. Too much competition, and I believe spotify is basically free if you use it on your PC? I don't use it, but tried it months ago and could listen to anything on my laptop. Only revenue-generating component I could find was the mobile site, but why would I pay for that shite when I can illegally download music or use something like Youtube's playlists? Does Spotify at least generate substantial ad revenue? I'm sure Pandora makes a killing there.
I don't get the $4billion value tag at all.
Posted on 5/9/14 at 3:24 pm to AlexLSU
quote:
The entire market for streaming music is puzzling to me.
Me too... Aside from Pandora occasionally, I don't use any streaming services.
I'm either listening to Sirius or my iPod in my car
Posted on 5/9/14 at 7:19 pm to Lsut81
There have been a lot of comments on financial media today about Apple buying "cool factor". That's a lot of moolah for cool, although with the death of Steve Jobs the cool factor has diminished considerably. Jimmy Iovine is indeed a cool guy with connections to artists.
You just can't take "the high school marching band" out of a guy, no matter how hard ya try. Apple needs "something" right now and and it looks we have reached "peaked cool".
Just s couple of days ago, I read a report that Dr. Dre was in negotiations to buy Gisele and Tom Brady's California house. After the video, all the pieces of the puzzle are falling in place. Reportedly, Dr. Dre does not want any of the the Brady's furniture in the sale.
You just can't take "the high school marching band" out of a guy, no matter how hard ya try. Apple needs "something" right now and and it looks we have reached "peaked cool".
Just s couple of days ago, I read a report that Dr. Dre was in negotiations to buy Gisele and Tom Brady's California house. After the video, all the pieces of the puzzle are falling in place. Reportedly, Dr. Dre does not want any of the the Brady's furniture in the sale.
Posted on 5/9/14 at 7:43 pm to NOTORlOUSD
quote:
Two companies that sell standard electronics at inexplicably high markups - a match made in heaven?
Yep. Don't understand why people pay twice the price for something. But, a lot of people do it.
Posted on 5/9/14 at 10:11 pm to kywildcatfanone
If more people realized how simple, similar and yet totally different Songza was, they'd snatch it up.
Very impressed with Songza, but I listen to iradio almost exclusively. Willie Nelson and Outlaw Countrh are outstanding. The Electronic/EDM Top 50 is also excellent.
Apple is missing something being late to the streaming game. What I would be far more worried about if I were them is the number of Grammy-level producers and sound engineers who absolutely hate how they're dumbing down their Pro Tools. Lots of folks howling about how they're moving their professional tools away from professionals.
Very impressed with Songza, but I listen to iradio almost exclusively. Willie Nelson and Outlaw Countrh are outstanding. The Electronic/EDM Top 50 is also excellent.
Apple is missing something being late to the streaming game. What I would be far more worried about if I were them is the number of Grammy-level producers and sound engineers who absolutely hate how they're dumbing down their Pro Tools. Lots of folks howling about how they're moving their professional tools away from professionals.
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