Apple Buys Beats: Desperation or Opportunity?

What does Apple’s acquisition of Beats Electronics mean for the music streaming market?

Apple’s $3 billion purchase of Beats Electronics was an uncharacteristic move for a company that has typically limited its acquisitions to small start-ups. In fact, its last high-profile buy was in 1996, when Apple purchased computer company NeXT and in the process brought previously ousted founder Steve Jobs back to the firm.

Announced last week, the purchase of Beats, which was founded by rapper Dr. Dre and music industry executive Jimmy Iovine, brings into the Apple fold an audio hardware business, including Beats’ popular headphones and the company’s streaming music service.

As Apple’s Worldwide Developers Conference kicked off in San Francisco this week, Knowledge@Wharton spoke to Wharton marketing Professor Peter Fader about how the company can successfully leverage Beats’ strengths and why the acquisition could prove to be a boost for the entire streaming music space.

*[This article was originally published by Knowledge@Wharton.]

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

For more than 10 years, Fair Observer has been free, fair and independent. No billionaire owns us, no advertisers control us. We are a reader-supported nonprofit. Unlike many other publications, we keep our content free for readers regardless of where they live or whether they can afford to pay. We have no paywalls and no ads.

In the post-truth era of fake news, echo chambers and filter bubbles, we publish a plurality of perspectives from around the world. Anyone can publish with us, but everyone goes through a rigorous editorial process. So, you get fact-checked, well-reasoned content instead of noise.

We publish 2,500+ voices from 90+ countries. We also conduct education and training programs on subjects ranging from digital media and journalism to writing and critical thinking. This doesn’t come cheap. Servers, editors, trainers and web developers cost money. Please consider supporting us on a regular basis as a recurring donor or a sustaining member.

Leave a Reply