Apple Buys "Beats By Dre" for $3 Billion (1 Viewer)

[The Commish]

I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.

I subscribe to the Spotify service. At the time I started, Spotify on a mobile device was only available to Premium, so that's how I got started.

Spotify has the ability to flag playlists or albums for offline usage, so I have a few playlists with several hundred songs that are always on my phone. It's really easy. After years of hoarding MP3 files, I never bothered loading my latest phone with any MP3 music and use Spotify exclusively and I haven't missed MP3/itunes for a second.

I used to use Pandora and if you just want to put on some 80s music in the background or what not, it's pretty good. If you want new music or have the desire to listen to album ___ by artist ____, Spotify absolutely crushes Pandora.

Spotify subscriber here as well...I pay specifically so I can play lists offline and not go streaming.

 

[cstu]

Only 16% of people on this forum dedicated to headphones gives Beats a 4 or 5 rating.

Beats Studio by Dr. Dre - Hi-Def Noise-Canceling Over-Ear HeadphonesRated # 511 in Headphones

 

[Quez]

Apple should also buy Monster Cable to create the over-priced trifecta.

 

[The Commish]

Only 16% of people on this forum dedicated to headphones gives Beats a 4 or 5 rating.

I have a pair and question giving them a 3...much less a 4 or 5

 

[avoiding injuries]

Only 16% of people on this forum dedicated to headphones gives Beats a 4 or 5 rating.

Beats Studio by Dr. Dre - Hi-Def Noise-Canceling Over-Ear Headphones

Rated # 511 in Headphones

Sorry. I saw an advertisement for wrinkle solution at the bottom of that page. I can't take them seriously.

 

[cstu]

I'm nonplussed as to why these headphones have become such a big thing of late.

Dre and Iovine (plus the rest of the team) are a marketing machine.

Acquiring them as part of the deal isn't an insignificant factor.

No, I get why Apple is interested in BBD. I just don't get why people are so interested in High End Headphones.

SERIOUSLY???????

YES!!!!!!!!!!

People want to listen to their music loud (and have it sound good) without disturbing other people.

Also for porn.

 

[Brony]

How are these streaming services paying the label for the rights to albums? I mean how much does it cost?

If nas puts out a new album now I have no incentive to go buy it when Beats (or whatever) will have it the same day. Are they paying hundreds of thousands of dollars for each album? They can't be.

Artists get paid per listen, but it's a really, really small number.

http://business.time.com/2013/12/03/heres-how-much-money-top-musicians-are-making-on-spotify/

 

[[icon]]

Apple should also buy Monster Cable to create the over-priced trifecta.

That was actually pretty funny

 

[[icon]]

Spotify subscriber here as well...I pay specifically so I can play lists offline and not go streaming.

Yep off-line playlists are great.

 

[Long Ball Larry]

How are these streaming services paying the label for the rights to albums? I mean how much does it cost?

If nas puts out a new album now I have no incentive to go buy it when Beats (or whatever) will have it the same day. Are they paying hundreds of thousands of dollars for each album? They can't be.

It's like .0000000007 cents per stream.

there are like 5-10 albums per year that sell over a million units and the rest are next to nothing.

 

[Long Ball Larry]

Ok, a little more, but either way albums are dead and song downloads are dropping.

Streaming is definitely the way now and some small-time artists are able to use it to make a decent living between the streaming revenue (small %) and the promotion for gigs and whatnot.

 

[Paulymaggs]

Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

Bingo.

that Dre and Iovine had no clue that they were selling the company at only 2.2x earnings.

What buffoons.

 

[sublimeone]

What's Dr. Dre worth nowadays? This guy has had an unreal sting of success, NWA, Snoop, Eminem and now Beats... wow

 

[sublimeone]

Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

Bingo.

that Dre and Iovine had no clue that they were selling the company at only 2.2x earnings.

What buffoons.

I dunno... you have the fad factor to add here... I think Dre made out like a bandit and Steve Jobs never would have made a deal like this. It blows my mind that Apple would pay 3 billion for a crappy headphone company that is basically the crocs of headphones. The streaming angle is kind of weak IMO. I think Apple could have developed a better platform and distributed it through their own channels much more efficiently than acquiring Beats. Kind of feels like a desperation move or maybe Apple just wanted to spend some of the money burning a hole in their pocket.

 

[humpback]

Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

Bingo.

that Dre and Iovine had no clue that they were selling the company at only 2.2x earnings.

What buffoons.

It's revenues, not earnings.

 

[cstu]

I dunno... you have the fad factor to add here... I think Dre made out like a bandit and Steve Jobs never would have made a deal like this. It blows my mind that Apple would pay 3 billion for a crappy headphone company that is basically the crocs of headphones. The streaming angle is kind of weak IMO. I think Apple could have developed a better platform and distributed it through their own channels much more efficiently than acquiring Beats. Kind of feels like a desperation move or maybe Apple just wanted to spend some of the money burning a hole in their pocket.

 

[Paulymaggs]

Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

Bingo.

that Dre and Iovine had no clue that they were selling the company at only 2.2x earnings.

What buffoons.

I dunno... you have the fad factor to add here... I think Dre made out like a bandit and Steve Jobs never would have made a deal like this. It blows my mind that Apple would pay 3 billion for a crappy headphone company that is basically the crocs of headphones. The streaming angle is kind of weak IMO. I think Apple could have developed a better platform and distributed it through their own channels much more efficiently than acquiring Beats. Kind of feels like a desperation move or maybe Apple just wanted to spend some of the money burning a hole in their pocket.

What are you saying? That The Black Rap Music Producer and his Jewish Associate got one over Tim "The Mastermind" Cook?

Talk any more nonsense like that and Icon will literally go to your house and smack you.

 

[shadyridr]

I use free pandora. I have a perfect mix of eminem and david guetta as my stations and im scared to leave

 

[The Commish]

Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

Bingo.

that Dre and Iovine had no clue that they were selling the company at only 2.2x earnings.

What buffoons.

I dunno... you have the fad factor to add here... I think Dre made out like a bandit and Steve Jobs never would have made a deal like this. It blows my mind that Apple would pay 3 billion for a crappy headphone company that is basically the crocs of headphones. The streaming angle is kind of weak IMO. I think Apple could have developed a better platform and distributed it through their own channels much more efficiently than acquiring Beats. Kind of feels like a desperation move or maybe Apple just wanted to spend some of the money burning a hole in their pocket.

I suspect Apple was after the user base more than anything. They'll take what Beats is and give it the Apple look/feel to start with. Then they'll look to rebrand "Beats" once the Dr Dre gimmick has worn thin.

 

[Quez]

WWDC 2014 is coming up. Probably too soon to announce anything major with beats.

http://mobile.theverge.com/2014/5/29/5759884/apple-wwdc-rumors-2014-what-to-expect

Nobody knows exactly what they are going to show, but it will probably be underwhelming if the rumors from the above article are true.

-Siri can shazam songs

-split screen on ipad

-higher resolution on things

-finger print lock on more stuff

-crappy map app does transit directions

-some stuff with health

-trying to get into home automation

 

[cstu]

Pair of $199 Beats headphones cost $16.79 in parts to make.

30% of their weight comes from metal weights added to increase heft.

https://fortune.com/2015/06/19/beats-headphones/

As Louie writes: “This is the power of brand. Dr. Dre and Jimmy Iovine have leveraged their personal backgrounds and a sleek design to launch a remarkable brand that’s become fundamental to music pop culture.”

Don't give any of that "Dre used to wear sequins!" crap - selling $20 headphones for $200, that's gangsta.

 

[NutterButter]

The other $180 per headphones goes to all the celebs they pay to endorse them

 

[The Ref]

Every time I get into a big pot vs someone wearing beats it always makes me want to call.