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.
I use Newsstand to subscribe to a car magazine from the UK (Top Gear) that would otherwise cost me >$100US/year to have delivered here. The BBC has done a great job with their magazine. There are plenty of other magazines and newspapers that fit in just fine here. But again, I think part of the problem is that magazines and newspapers overall are a dying industry - why would you want to read a magazine when you can just visit a website daily/weekly and be caught up?
Game Center is another that has had limited opportunities to shine. Partly Apple's fault because they don't integrate with Android, but a beautiful example of how to use Game Center was the Letterpress game awhile back. I believe Letterpress was an iOS-only game. If it had been a cross-platform game, where many developers go now, then GC would have been useless to them. But the features are there, if a developer decides to use them. The scoreboards and friend matches and achievements are used in many iOS games as well.
Passbook is the one that has hurt the most due to a lack of third-party interest. I personally use the Starbucks card whenever I happen to be want one of their drinks. There is plenty of anecdotal evidence that the MLB and airline tickets are also well done. I wish more stores with loyalty cards would release Passbook apps, but again, where is the desire for your favorite grocery store chain to create a Passbook enabled app? Hell, most grocery stores you are lucky to even see an online inventory and this week's sales on their website.
I don't confuse "perfection" with "third-party participation".