In May 2014 Apple announced its agreement to get hold of the famous music service provider Beats. Beats is a subscription based company and is extremely popular amongst music lovers.
Apple Inc. (NASDAQ:AAPL) through this deal also gained Beats electronics, which is responsible for Beats headphones as well as speaker and audio software. The co-founders of Beats Jimmy Iovine and Dr. Dre were to join Apple following the deal. Apple sealed the deal for about $3 billion.
Tim Cook, the CEO of Apple said that music is a very important part of everyone’s life at Apple. This is why the company keeps on investing in the music industry and also brings extra ordinary teams together to continue working on innovative music products for its customers around the world.
Jimmy Iovine said that he had always thought that Beats belonged to Apple because the idea of Beats was influenced by Apple’s amazing quality of bringing together culture and technology.
Apple included a welcome page for Beats on its website and on the other hand Beats also updated its website to acknowledge Apple’s purchase.
Apple revealed its long term plan of expanding the experience of Beats headphones to bigger levels via this purchase.
Now Financial Times Newspaper has declared that Apple is planning to make Beats streaming music service a must have on every iPhone in the upcoming year. According to FT Apple will incorporate the Beats app in its latest iOS operating system, which will be used on iPhones and iPads.
Apple however has not said anything about FT’s report and refused to comment on it.
Beats transition into the world of streaming music is a threat to Spotify. Spotify is currently a market-leader and is available for downloading at Apple’s music store. However, Spotify had recently faced a problem when Taylor Swift pulled her entire music catalogue from Spotify’s collection of music. Swift said that the royalties that she was getting were not at par with the value of her work. Swift however, refused Spotify’s claims
Beats if pre-installed on iPhones and iPads will help Apple reach more and more customers easily and it will help boost both Apple’s as well as Beats’ market value.
Apple has a huge market and has great customer loyalty and anything that Apple does create a buzz in the market. This new move by Apple Inc. (NASDAQ:AAPL) is likely to be welcomed by its users. However after the U2 fiasco, where users actually asked the tech giant to give them a delete-the-album option, Apple may be a just a little worried about the response its users may have to this new setup.
Whether FT’s claims are true or not is yet to be seen. It’s only a matter of time that customers will find out if their iPhones and iPads will get Beats along with the latest iOS update or not. Apple has big ideas for Beats and it invested a lot of money in this acquisition so it is highly possible that Financial Time’s claims are true.
