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Re/code: Why Apple Is Betting Big on Beats: Hardware for Now, Streaming for Later


beats_sqPeter Kafka of re/code published a good article on why Apple will likely acquire Beats, describing the possible transaction as essentially two deals in one – one for the consumer electronics arm of Beats and the other for Beats Music, its newly launched streaming music service. Kafka writes: “Marrying that business [the consumer electronics business] with Apple’s established design and product operation, overseen by Jonathan Ive, could give Apple a new series of product lines and/or new channels to push out new products like the rumored iWatch.”  However, he points out that with the decline of Apple’s music download business “[i]t’s likely that Apple is more interested, long-term, in the potential of Beats Music, the subscription streaming service.” Read more.


  1. If any company can profitably monetize streaming music, I guess it will have to be Apple. To tell the truth it almost doesn’t make any sense to acquire music since I’ve been using Spotify. There’s just so much out there to listen to and if I really want a song that badly, I can simply use Audio Hijack to make it mine for all time. Maybe iTunes downloads are a thing of the past and it blows me away just imagining that happening. Then again, I didn’t foresee the death of the iPod either.