Beats Acquisition To Bring “Culturally Aware” Managers to Apple
According to a report published by Tech Crunch, employing “culturally aware” managers at Apple is a signal of why Apple is interested in acquiring Beats.
The reports outlines that Jimmy Iovine and Dr. Dre are influential entrants in the company, and that the engagement fits Tim Cook’s recent hiring of fashion-oriented managers like Angela Ahrendts from Burberry, Wearable expert Ben Shaffer from Nike, and Paul Deneve from Yves St. Laurent.
Jimmy Iovine and Dr. Dre’s expertise in marketing could be a crucial advantage for Apple as they move ahead to aggressively market the company’s line of products. Their arrival on board might also add a fresh angle to the company’s existing strategy of obtaining revenue from Music and their overall marketing plan set out.
A well-placed source has confirmed rumors that Apple’s acquisition of Beats “is happening” but was close to falling apart multiple times. The source said with “70% certainty” that Apple’s planned multi-billion acquisition of headphone maker Beats will go through. But Apple isn’t buying Beats for the technology, they’re buying the talent.
“They want Jimmy and they want Dre,” said the source. “He’s got fashion and culture completely locked up.”
A separate news in Tech Crunch says, Apple is planning to operate Beats as an independent streaming music service to avoid cannibalization of the revenue made from their proprietary iTunes store.
Reportedly, Apple is not edgy about forgoing 30% of the revenue share received from its music downloads, but the launch of a new streaming music service could terminate more than $ 1 billion dollars generated from iTunes.
Because it’s deeply conscious that pumps a lot of blood into the music industry. My source says iTunes execs started deeply considering streaming at least two years ago. They realized a sudden move for iTunes from downloads to streaming could lead to dark days for the record business, reducing musical inventory – and revenue – accordingly.
The report also asserts that Apple might look at enlarging the business side of ‘streaming service’ alongside iTunes music downloads drop which the company is working out to “bridge the download and cloud eras gracefully”
The announcement of the acquisition will take place in the Worldwide Developers Conference Keynote on June 2.