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Apple Confirms Its $3 Billion Deal for Beats Electronics

nytimes.com

281–290 of 351 posts

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#281
post #263

Earlier quoted context omitted.

What demographic is this? Beats headphones are not inexpensive

Cheaply made beats phone will happen and it'll sell more units than you can imagine. It'll have to be cheaper than the iPhone, not by much. I didn't say beats headphones were cheap now did I? Keep up.

How can beats sell a phone cheaper than its headphones?

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#282

The meat of this deal isn't likely the streaming service. Beats Music had only 111,000 subscribers as of March [1]. Compare that to Spotify's 10 million paying subscribers, 30 million non-paying users, and $4 billion valuation. The deal's financial logic is driven by Beats's $1.3 billion business (in 2013) of selling high-priced headphones. Given Apple's P/E ratio of 14.9x earnings [2], the acquisition would make sen…

Wow. Hold on. The meat of this deal is absolutely the streaming service. Apple NEEDS streaming. I buy an iPhone: I pay $100 to have ALL THE MUSIC ALL THE TIME with that phone, for the lifetime of the device. Awesome! It's like Amazon Prime but better. And Apple NEEDS that; for them to negotiate their own streaming service with the majors + merlin it would have cost them dear - probably some sort of huge advance or eq…

You wrote all that and didn't even notice that Apple already has a streaming service that is larger than Spotify?

http://tech.fortune.cnn.com/2014/03/11/apple-itunes-radio-pa...

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#283

Honest question: is there a statute of limitations on what the tech world will tolerate with regards to misogynistic behavior (or bad behavior in general)? Or do people just pick and choose what they want to fight? I ask because everyone rallied behind RadiumOne's CEO being canned after he beat up his girlfriend [0]. Similar with the Mozilla CEO (granted, the offense was different ... but it's interesting to point ou…

The assault charges notwithstanding (I don't really have an answer for that, other than "it was a long time ago", as per other comments), NWA is an interesting case. If you listen to 'Straight out of Compton', one of the defining albums in "gangster rap" as a genre, it paints a picture of LA which is like a dystopian future - where the world is blacks vs whites, people who live on the street vs cops, and where the options are kill or be killed. No matter how rough you had it growing up in the 70s and 80s LA, you would not have had it anything like 'Straight out of Compton" portrays. This kind of imagery in a film would not lead to lingering questions about the morality of the screenwriter or director, but it does for musicians.

In music we seem less able to separate the story from the artist than for other artistic mediums. Is it because many rappers maintain a public persona which is in line with that presented in the albums (even though it's not in line with the way they really are), or is it because music is still generally considered to be primarily about raw entertainment, rather than storytelling? It's interesting.

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#284

I just want to go on record with an entirely different idea as to why Apple is buying beats. They're going to make a label. Why Apple doesn't do streaming: Apple hates committing to something unless it's absolutely perfect. There are numerous examples, but NFC technology is a good one that comes to mind. Granted, they've made mistakes, like Mobile Me, but that was due to poor implementation, rather than immature tech…

> Why Apple doesn't do streaming...

Uh, yes they do, quite well in fact:

http://tech.fortune.cnn.com/2014/03/11/apple-itunes-radio-pa...

Already bigger than Spotify just six months after launch.

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#285

I just want to go on record with an entirely different idea as to why Apple is buying beats. They're going to make a label. Why Apple doesn't do streaming: Apple hates committing to something unless it's absolutely perfect. There are numerous examples, but NFC technology is a good one that comes to mind. Granted, they've made mistakes, like Mobile Me, but that was due to poor implementation, rather than immature tech…

"Apple hates committing to something unless it's absolutely perfect" Like Newsstand, Game Center and Passbook? This is the biggest misconception about Apple. While this is very much the case for their hardware products like iPhone, iPad, Mac pro and Macbook, it is not the case with software or services.

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#286
post #157

The amount of people in this thread who are unable to understand the brilliance of this deal is astounding. What they bought is not one thing, but all the components that came together in the right way, at the right time. * Beats Music, a music service that is truly different from the others and is in my opinion better in many ways. * Legendary founder of Interscope records Jimmy Iovine (who then ran it for 25 years)…

I haven't tried Beats Music (I am in Cambodia at the moment so no soup for me), but why is it better than Rdio and Spotify?

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#287
post #70

The most interesting reveal from Tim Cook's quote is that he only mentions the music service and the talent, not the headphones. That's super interesting. It basically means Apple looked at this like a typical Apple aquihire / component technology purchase (of the service), that just happened to have a multi-billion dollar profitable accessories business attached to it. That makes it a very unique kind of deal.

Wild hypothesis. Amazon started as a book distributor. Now it is fighting to become a publisher. iTunes + iPod started as a music distributor. What if it now has ambitions as a label? How would one build that out of Cupertino? One would start with a fringe, fragmented genre, to serve as a beachhead. Fragmented by not flat - there should be a node near the top of a hierarchy which can be acquired and leveraged. $1.3 b…

I'm surprised Pandora, Spotify, Rdio and the others have started their own labels.

Follow the Netflix model of owning and distributing the content.

In the long run this would cut down the power of the current labels and in turn increase profits at all these streaming services!

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#288

Earlier quoted context omitted.

The public remorse (even if feigned) matters. The internet would have forgiven Eich if he had publicly displayed regret with his donation, rather than tacitly standing behind it.

I don't agree with Eich views on marriage at all but it was refreshing to see that he DID NOT do what you suggest (which would've been a very hypocritical thing to do) and stuck to his believes.

His beliefs could have actually changed. But I do agree, I don't want Eich, or anyone, to _lie_ about who they are or what they believe. If he really, truly feels the way he does he should stand by it and accept whatever happens... but if he truly regrets it, the way Donald Sterling does[1](I hope), then he could have stated that regret and all would probably be "forgiven"(scared to use this word implying someone needs to be forgiven for their beliefs... but hopefully I'm getting my point across that I agree)

1. http://www.theaustralian.com.au/sport/donald-sterling-admits...

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#289
post #224

Earlier quoted context omitted.

That incident was 23 years ago and he did his time for it. He's also shown remorse for it and wishes it never happened.[0] He's a 49 year old man now and he's been married for 18 years. I think he's past that kind of stuff. [0] https://www.youtube.com/watch?v=btc1MflBSeQ&feature=youtu.be...

He has learned to control his public image sure, but most of his lyrics of music that he has written, performed, and produced (even presently) seems very much misogynistic. Look, we've got stories all over about the #YesAllWomen phenomenon on twitter currently. All the women asking for equality and stating that they have been sexually harassed/abused/assaulted in some way. Now in this story we have someone who holds…

I would recommend including specific examples of lyrics if you're going to come down with a conclusive opinion on this one.

Re: Apple Confirms Its $3 Billion Deal for Beats Electronics

#290
post #203

Earlier quoted context omitted.

Pandora and spotify are structurally unprofitable because of their licensing problems/payments. Apple is %500Bn company-- big enough to become a label--has the marketing expertise (iTunes) and Capital ($X0Bns cash) to be a next-generation 'label'. Or maybe I'm missing something?

If Apple (or Google) had wanted to buy out the record labels and their catalogs, they could have done so years ago. They obviously didn't, probably because it's a dying industry that isn't nearly as profitable as their current products. The very idea of a 'record label' is a relic of the 20th Century, when all recorded music was distributed on heavy physical artifacts.

Not sure I follow. Who said anything about buying out the record labels? Apple can just a label-replacement. There is still a need for a distribution/production/promotion service layer in music biz.
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