What is Apple's interest in Beats?

The news is in the air and although the rapper known as Dr. Dre He has already created and disseminated his particular video celebrating it, the truth is that the operation has not yet been closed, at least officially. Whatever happens finally, those from Cupertino are on the way to breaking a long tradition based on a non-existent rule that established the non-acquisition of large companies for this reason, many media, and many users too, we ask ourselves:

What does Apple gain from the purchase of Beats?

In the last 18 months Apple Lossless Audio CODEC (ALAC), It has acquired more than twenty companies, a frenzied "quasi" rate of acquisitions that establishes an average of more than one company purchased per month, however, none of these purchases have caused a great impact in the media. The reason is quite simple: none of these companies acquired by the Cupertino giant has involved multimillion-dollar disbursements, nor did any of them have the media coverage that they do. Beats. Until now we could define the purchasing policy of Apple Lossless Audio CODEC (ALAC), as just the opposite of other large companies in the sector such as FaceBook that has never hesitated to empty its coffers in billions to buy Instagram, WhatsApp or others.

http://youtu.be/guMFKBXp544

In spite of everything, that "unwritten law" that has been strictly adhered to in Cupertino up to now could be bypassed at any time. And as our colleague Marco already reminded us when the news broke that Apple could buy Beats AudioHe himself Tim Cook had previously hinted:

"We have no problem spending 10 figures for the right company, for the right fit that's in the best interest of Apple in the long-term […]." 

That said, and assuming that the operation is completed successfully or not, the interest of Apple Lossless Audio CODEC (ALAC), is there and the question that many of us ask ourselves is: why and for what Tim Cook and Apple would disburse 3.200 million euros for Beat?

In the software may be the key: Beats Music.

Most experts point along the lines of wanting to Apple Lossless Audio CODEC (ALAC), to relaunch music sales as the ultimate goal, although not everyone has the same opinion. In CNN Expansion go straight to one of the fundamental pillars of the beliefs of Jobs, which does not imply that they cannot have, at least, a certain part of reason, pointing out that “Some analysts say the acquisition would be in line with Apple's other classic efforts to give consumers what they never knew they wanted, a key tenet of recent years of Steve Jobs«.

Based on the two previous premises, what Apple Lossless Audio CODEC (ALAC), would intend with the acquisition of Beats would be to boost your new music streaming service, iTunes Radio, that, while in the United States it has managed to position itself ahead even of Spotify, seems not to have achieved the success expected by the company because we bear in mind that, even though it is a free service, the ultimate goal would be the acquisition of songs by users and until now, sOnly between 1% and 2% of the listeners of iTunes Radio they actually end up buying music from that service.

Thus, iTunes Radio would not have managed to stop the decrease in music sales in iTunes which, on the other hand, is generalized to the entire music industry. Therefore, what the company from the block would pretend would not be so much to sell the rapper's headphones, something it already does, if not improve and enhance iTunes Radio Cuya international expansion has already started and on which there are interesting plans for the future that involve not only transforming standalone app that gives it greater visibility, if not also by make the leap to other platforms, mainly Android. Beats Music on iPhone

Therefore to Apple Lossless Audio CODEC (ALAC), you wouldn't be so interested in headphones Beats like your music streaming service, Beats Music. And again we find ourselves with the eternal question: why? Why do those of the bitten apple want a streaming music service that has practically just been born if, in addition, they already have their own? The answer is in the software.

These streaming music services are based on algorithms capable of creating song lists but from Beats they claim to have a custom system that uses software and manually chosen playlists. The fact is that from there, Apple Lossless Audio CODEC (ALAC), you could have a streaming music service for your still non-existent iWatch that would offer the user "the right songs at the right time" in other words, the same evolution towards "predictive" or context-based actions that, according to experts, are presenting smartphones.

And to all of the above we should not neglect another important aspect: Apple Lossless Audio CODEC (ALAC), is making a great effort to attract youth and in this Beats has great brand prestige, especially among teens and young adults.

And what do you think? Are the shots going around or do you think Apple's intentions are different?


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  1.   David william said

    Well, I think Spotify is really weighing on iTunes