Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • PM Modi in Manipur
  • Charlie Kirk killer
  • Sushila Karki
  • IND vs PAK
  • India-US ties
  • New human organ
  • Downton Abbey: The Grand Finale Movie Review
fp-logo
Apple buys Beats: It's paying less than $500 million for the streaming service
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Tech
  • News & Analysis
  • Apple buys Beats: It's paying less than $500 million for the streaming service

Apple buys Beats: It's paying less than $500 million for the streaming service

tech2 News Staff • May 30, 2014, 11:06:26 IST
Whatsapp Facebook Twitter

Apple is paying a little less than $500 for the Beats Music streaming service.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Apple buys Beats: It's paying less than $500 million for the streaming service

Apple’s Beats acquisition is one of the biggest in the company’s history and besides the hardware business, Apple also gets Beats Music, the up-and-coming music streaming service. It’s a cross-platform service, so Apple now has apps on Android and Windows Phone for the first time. Beats Music is the key for Apple **as it looks to augment its music portfolio.**   But it hasn’t had to spend too much. Apple is paying a little less than $500 million for the Beats Music streaming service, according to a Wall Street Journal report.   The report quotes people familiar with matter. It also quotes a “person familiar with Beats said its 2013 sales totaled close to $1.3 billion—all from the electronics unit that sells headphones and other audio gear—and the company was profitable.”   The music-streaming service was launched in January this year and has close to 250,000 paid users, adds the report. The difference in price for the two Beat units is because they are backed by different investors, says the report. Apple paid a total of $3 billion for the company which was founded by Jimmy Iovine and Dr Dre.   Beats Music charges users up to $10 a month but as an AP report pointed out streaming services end up paying as much as 70 percent of their revenue in artist royalty fees which leaves little left for advertising and promotional campaigns to explain to consumers the benefits of paying for a music service.   The report quotes Mark Mulligan, a music industry analyst and blogger with MIDiA Consulting, as saying, “The only people that can afford to get into this business have other main businesses. Every service ends up putting itself into significant debt just to cover its basic operating costs.”   According to analysts Apple’s purchase is largely an acquisition of talent and a way to offset the declining popularity of iTunes for digital music, the company notes its main source of revenue has always been from devices. Music is just a hook to make those devices more usable and attractive.   And if Apple does hope to offset the decline in iTunes music sales, the $500 million for Beats seems to be a very good deal indeed.

Tags
Apple Inc. Technology Apple Tim Cook Jimmy Iovine Dr Dre Beats Electronics Tech Deals Apple buys Beats Apple Beats deal
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Top Stories

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV