Apple’s Beats-based music service plans revealed, including Apple’s first Android app

“Six months after buying the subscription music service Beats Music, Apple is actively working to launch a completely new paid streaming music service that will compete with Spotify and Rdio,” Mark Gurman reports for 9to5Mac. “Yet to be named, the new service is entirely Apple-designed, yet leverages Beats’ technologies and music content, a collaboration that has thus far led to personnel challenges and delays. Multiple sources within Apple and the music industry have provided the first in-depth details of Apple’s upcoming streaming service.”

“Apple has decided to deeply integrate Beats into iOS, iTunes, and the Apple TV,” Gurman reports. “The company is currently developing new Beats-infused versions of the Music application for the iPad, iPhone, and iPod touch, as well as an updated iTunes application for computers that deeply integrates Beats functionality. A new Apple TV application is also in the works.”

“The new streaming service will also mark the first time Apple offers an Android application developed entirely in-house,” Gurman reports. “Contrasting with former Apple CEO Steve Jobs, Tim Cook said in 2013 that Apple has ‘no religious issue’ against developing an Android application. ‘If we thought it made sense to do that, we would do that,’ he said, and in this case, it makes sense given Android’s significant market share, Beats’ existing subscriber base, and the opportunity to give Android users a small taste of Apple’s software.”

Much more in the full article – very highly recommended – here.

MacDailyNews Take: iTunes Music.


  1. I am an iTunes match subscriber, so I was able to listen to Radio on iTunes.

    But I have grown very frustrated with Radio on iTunes. So I tried a Beats subscription. I was not impressed with it either.

    So now I am a very happy Spotify subscriber. I will try the new Beats when it comes out and I hope I like it.

    But $3 billion for Beats???? I still think is $2.5 billion too much.

    1. Keep in mind the Beats acquisition also included the extremely profitable and brand established headphone business. That results in a ROI that’s better than the ROI on Apple’s cash holdings. The music service and the talent that came with it makes the deal very beneficial for all parties.

        1. Yes, or did you think the headphones just marketed themselves?

          I don’t have a pair of their headphones as I don’t care for them versus others, but there’s no arguing that they got to the #1 position in terms of units/profits by having talented people.

      1. Yes. Not only that, but Beats’ HQ was in Ireland, so it was an international purchase, meaning Apple could purchase without paying US taxes on profit repatriation. So it was an ROI positive deal using untaxed money to get a business with Apple sized margins and a new streaming service. And the headphone product line was already in the Apple Stores. (Meaning it is more valuable to Apple than it was to Beats.)

        That said, $3B sounds high to me too, but I haven’t seen Beats’ books. Apple did, and having worked at a company acquired by Apple in the past, I can tell you that its M&A team has some tough negotiators on board. Probably much more so now than in years past.

        1. Apple bought beats for 3 b
          Google bought Nest for 3.2 b

          Beats annual revenue is around 1-1.5 billion (i.e purchased at 3 x revenue)
          Nests revenues is around 300 million (i.e purchased at 10x revenue)

          Nest has a bunch of product recalls etc.
          reuters 2014
          “Google Inc’s Nest Labs is recalling 440,000 smoke detectors, “

        2. You should have said “untaxed by the United States.” That money that Apple has overseas is taxed in each country that the money came from already.

    1. I think Apple should break iTunes into separate apps, even on OS X. It just seems like there are too many services trying to be jammed into one UI, when each service would be better with its own unique but similar interface.

  2. Out of pure curiosity, I’ve used Beats Music streaming service since before Apple bought it last year. I wasn’t sure if I would like it, because I always thought you should “own” your music, not “rent” it. After nearly a year of using the service, I can now see an argument for the streaming subscription model. I also like the playlists that have been put together as introductions to an artist or genre of music too.

    I’ve enjoyed the ability to play whatever music comes to mind. I feel like a kid in a musical candy store! As long as what you’re searching for is in the the Beats Music catalogue of course, and that’s where it can show some holes. Some artists have their entire oeuvre available. Some have most, but oddly, not all their work available. And some artists have none at all.

    Perhaps it was naive to think that the iTunes Music catalogue would be merged with the Beats Streaming catalogue, but one can dream. I suppose the licensing rights are different between the two catalogues.

    I wonder if the Beats Streaming interface could be integrated into a new way to navigate all of our media on all of our devices? Because we could really use an upgrade in the way we find and enjoy our content.

  3. iTunes is Apple’s Windows. Cook can’t imagine a world where everything isn’t tied to the name iTunes.

    Personally, I think music streaming services should be completely separate from iTunes and the REAL iTunes media management needs to be dramatically improved. Perhaps that means breaking iTunes into separate apps, but Apple needs to stop removing handy features that users who own their own media need. iTunes 12 is a miserable, inefficient, unintuitive interface.

    Radio and Beats should be merged into a separate product that people who don’t need don’t have to keep on their devices.

  4. Still think pissing away almost $3 Billion on Beaten by Dre is a titanic waste of money. The brand is sheeple bait for trend followers.

    Deeply integrated Beats bullshit = no desire on my part to spend a thin dime on it.

  5. My Pet Conspiracy theory…

    Apple created Beats.

    The whole company feels like Apple and even the name is a perfect direction (I hope they lose “iTunes”)

    Why would Apple let iTunes die a slow death (which is what it’s been doing, maybe not the store, but def as an app/streaming) without doing anything about it, with all the money and influence they have, without trying to re-invent it.

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