Tim Cook on the Beats acquisition

What Beats brings to Apple are guys with very rare skills. People like this aren’t born every day. They’re very rare. They really get music deeply. So we get an infusion in Apple of some great talent.

We get a subscription music service that we believe is the first subscription service that really got it right. They had the insight early on to know how important human curation is. That technology by itself wasn’t enough — that it was the marriage of the two that would really be great and produce a feeling in people that we want to produce. They’ve also built an incredible premium headphone business that’s been tuned by experts and critical ears. We’re fans of that. It’s a reasonable-size business that’s fast-growing.

But mostly, backing up — it’s because we always are future-focused. So it’s not what Apple and Beats are doing today. It’s what we believe pairing the two together can produce for the future.

Talent, music service, and the future.



8 thoughts on “Tim Cook on the Beats acquisition”

  1. I don’t believe this can singularly be looked at as a move for better “music streaming.” It’s only one piece of a whole picture. I think that Apple is making a full on move into Radio as a whole. Of course this is my opinion but it seems like all signs are pointing to it. Between the announcement of Carplay, and it not only being built into cars but also having aftermarket compatibility, the acquisition of Beats for music, and the report yesterday that they’re bridging on ESPN which will carry World Cup and i’m sure other live sports events, plus NPR. All that in addition to the ability to be able to listen to podcasts, which is just radio on demand, and you start to see a picture of how huge this is going to be. And I believe that’s just scratching the surface….

  2. Ignoring the streaming side for a minute, I don’t get how Tim Cook can stand there with a straight face and say “They’ve also built an incredible premium headphone business that’s been tuned by experts and critical ears.” Beats headphones are universally panned as being overpriced, mediocre-sounding junk. Look at the article that The Wirecutter published earlier this week on better alternatives to Beats headphones. Either Tim is talking out his ass or someone sold him a bill of goods. I don’t like either scenario.

    The Apple haters are going to love the fact that Apple is selling inferior products at a premium price just because of the label. They’ve been accusing Apple of that forever. They’ll finally have an actual case for their claims.

  3. My Beats are made sturdier, have lasted longer, and sound better than my previous pair of Bose headphones. They’re also much more comfortable. The internet loves to hate on Beats, but they aren’t crap.

  4. I like Apple – a lot. But, this drivel is total BS. This is the stupidest move Apple ever has made and to I think proves Cook doesn’t know what he’s doing. Maybe the Apple cynics are right.

  5. Translatin’:

    “What Beats brings to Apple are guys with very rare skills. People like this aren’t born every day. They’re very rare. They really get music deeply. So we get an infusion in Apple of some great talent.”

    They cooler than us, but we got more money. We give em money, they give us cool.

    “We get a subscription music service that we believe is the first subscription service that really got it right. They had the insight early on to know how important human curation is. That technology by itself wasn’t enough — that it was the marriage of the two that would really be great and produce a feeling in people that we want to produce.”

    I’ve no idea what magic they doing there. So we bought ’em and said “do that magic for us”.

    “They’ve also built an incredible premium headphone business that’s been tuned by experts and critical ears. We’re fans of that. It’s a reasonable-size business that’s fast-growing.”

    Man those are some shitty headphones, but I’ll say anything to prop up that business. They better keep selling for a few years, because they have 3 billion dollars to make up for.

    “But mostly, backing up — it’s because we always are future-focused. So it’s not what Apple and Beats are doing today. It’s what we believe pairing the two together can produce for the future.”

    Synergy, motherfuckers! Synergy! 111

  6. you forgot a third possibility — that Cooks knows something you dont know. like strategic roadmaps and other such plans. i mean, really. nobody reading this site has any clue what they talk about in that office.

  7. in another thread user JohnDoey, an actual studio professional, has the best take on it:

    > This is the craziest thing Apple
    > has ever done.

    Why? I don’t get why you think it is crazy.

    Beats makes the most popular line of consumer headphones. Apple makes the most popular line of consumer music players. The 2 products actually plug together to work. *The 2 company’s products actually plug together to work.*

    Beats is run by one of the most successful music producers in history (Jimmy Iovine) and one of the most successful music artists in history (Andre Young aka Dr. Dre.) Apple is a musical instrument maker who makes the most popular professional music production computer (Mac,) the most popular professional music production software (Logic) as well as the most popular consumer music production computers (iPad/iPhone) and the most popular consumer music production software (GarageBand) as well as the most popular music playback hardware (iPod) and the most popular music playback software (iTunes.) It is very likely that at some point, both Iovine and Young worked on a music project that was made entirely with Apple products, and then they listened to that project entirely with Apple products. That is a common thing to happen in music studios, which are filled with Macs, iPads, iPhones, iPods, Logic, GarageBand, and iTunes. And Beats headphones.

    Beats has the music subscription services with the largest selection of music (Beats Music,) and Apple has the music download service with the largest selection of music (iTunes Store.) Put them together and you can offer the consumer a subscription listening service from which they can collect and keep their favorite tracks for a lifetime with 1 tap, as they listen.

    The HD music era is just beginning. We will soon move from listening to CD era 16/44 audio files to listening to HD era 24/96 audio files, which is the kind of digital music you find in a music studio (where Iovine and Young have spent many years working.) Enabling the HD era is part of Beats’ mission, and Jimmy Iovine has been talking about HD audio and promoting it within the music and technology industries for more than 5 years now. He has been asking which technology company will lead on this for more than 5 years now. Apple’s iTunes Music Store has also been promoting the oncoming HD music era for years now, collecting HD music masters under their Mastered for iTunes program. Iovine promoting HD audio to other music producers and Young promoting HD audio to other artists will only make Mastered for iTunes and HD music happen faster. Apple wants it to happen fast because all the subscription services that are cutting into iTunes Music Store sales are streaming 16/44 audio and as streaming services, they don’t want to move to the much larger 24/96 files. The 24/96 files give you a reason to download your favorite songs again, because the downloads will once again be too big to stream. HD audio gives iTunes downloads a second life. So by buying Beats, Apple has essentially answered Iovine’s question of which technology company will lead on HD audio by saying, “It will be Apple, and you will be heading it up from within Apple.”

    HD music also needs hardware support. Macs have had built-in HD audio for many years, and iOS devices will either get built-in support for HD or support for HD audio accessories that plug onto Lightning. For example, a set of Apple Beats headphones with a 24/96 decoder built into them and a Lighting plug on the end of the cable. That would be the perfect way to enable all the existing Lightning-compatible devices (iPad 4, iPad Air, iPad mini, the latest iPod nano, and iPhone 5 or later) to playback HD music.

    Further, the “Beats” brand is compatible with Apple’s marketing efforts. Same as when Apple bought the famous Logic music production software and turned it into Apple Logic, they can turn the Beats products into Apple Beats.

    So rather than being hard pressed to see a reason why the Apple/Beats deal makes sense, it is actually hard to find a way it does not make sense. The founders are similar, the current hardware products plug together, the music production connections are the same, the music retailing services complement each other, the future HD products complement each other, and the branding is even complimentary.

    So I would love to hear why you think the Apple/Beats deal is crazy other than “NWA!” which makes no sense.

    And try to explain it to me as though Andre Young is a member of the same race as Tim Cook, because he is: human race.

    http://www.loopinsight.com/2014/05/28/apple-acquires-beats-for-3-billion/

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