NEW DELHI: iPhone maker Apple today announced a $3 billion deal to acquire subscription streaming music service Beats Music and Beats Electronics.
Apple will expand Beats Music subscription service and Beats headphones, speakers and audio software to more markets through the Apple Online Store, Apple’s retail stores and select Apple authorised resellers.
Currently, Beats is more popular in the United States. Beats co-founders Jimmy Iovine and Dre will join Apple, as part of the acquisition.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Apple CEO Tim Cook. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world,” he added.
The acquisition of Beats will assist the device vendor to spruce up its music offerings, from free streaming with iTunes Radio to subscription service in Beats.
In five years since launch, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market, said Apple in a statement.
Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customised Beats headphones and speakers.
Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture collaborated on special limited products, while athletes including LeBron James, Serena Williams and Neymar use Beats as a critical part of their training and game day process.