Apple Change Their Game

When it was announced last week that Apple was looking to buy Hip Hop artist, Dr Dre’s, Beats headphones business, analysts and Apple fans raised an eyebrow or two. Apple normally don’t splash out billions on a fashion accessory, especially one whose technology is questioned by aficionados.

Apple is only ever known to buy small technology businesses, which possess great minds or intellectual property that Apple wants to brand as their own. Indeed only Siri, has survived being purchased by Apple and kept its name.

So if the technology isn’t amazing, why is Apple effectively purchasing a brand, at way above market value? Essentially, it’s to boost its music offering.  For those of us who still believe downloading music is the cutting edge, the game has moved on. Companies like Spotify and their streaming service changed the game.  When you then consider that Beats Music launched its own streaming service earlier this year, suddenly the picture becomes a little clearer.

iTunes Radio hasn’t really taken off and whilst iTunes still defeats Beats and Spotify in Google searched the gap is reducing. So based on the assumption that the purchase of Beats is all about music streaming rather than a fashion accessory and we can start to expect Apple to provide a subscription service in the near future.