According to recent reports Apple is currently in talks with Beats technologies in a deal that could result in a $3.2 billion dollar takeover. This would be the largest acquisition in Apple’s history.
Beats Technologies, which was founded by Jimmy Iovine and Dr Dre in 2008 is known for its funky headphones and popular music streaming service. According to the Financial Times the deal could be announced as soon next week.
What is very interesting is this change in strategy for Apples Tim Cook. Apple’s iTunes revolutionised the digital music industry when it was released in 2003 but in recent years has experienced a lot competition from the likes of music streaming services such as Deezer and Beats. This latest acquisition likely shows Apples desire to offer its own music streaming service and maintain its current market dominion.
Personally I think this shows a big change in consumer habits. More people are streaming music than ever before and I think eventually music downloads will be a thing of the past. Streaming services offer a lot more versatility and enables people to consume as much media as they like but with minimal cost. Just like TV services are becoming more internet based, I think we will see a similar shift in the music industry. I don’t think people have a desire to own digital copies of movies and music albums anymore, and Apple’s acquisition of Beats could pave the way for a much less restrictive music experience.
I for one am pretty excited about what the future holds for Apple and the music industry.