Ok, the deal is not even officially announced, how the ef is so much info leaking out?
If it's leaking out of Beats, then they're already demonstrating how poor of a cultural fit for Apple they are. From... literally not day 1, but day -N.
If it's leaking out of Beats, then they're already demonstrating how poor of a cultural fit for Apple they are. From... literally not day 1, but day -N.
That said, it's not Dre's first entry into Apple's orbit. He has two entries in Isaacson's /Steve Jobs/.
EDIT: Actually, I might lean toward thinking the contracts are transferrable, given Beats built its streaming service by purchasing MOG.
Beats' streaming service has a recommendation engine that is a combination of automated and manual curation. And iTunes Radio has shown that is Apple may be fine on the first but clearly fails at the second. What Levine mentions during the interview is how they know which producers and DJs are coming/going etc. So clearly they have extensive insider connections within the music industry. That is definitely worth spending money for.
Not only does Apple get a well-aligned brand poised for growth, but they also eliminate a potential threat in the weak-aspirational electronics space.
Apple and Beats are also unique: they're the only two weakly aspirational brands I can think of that present organically in haute/celebrity culture. Both brands have managed, somehow, to punch up and mingle with strong-aspirational / luxury products while still being accessible to a large audience. You're more likely to see a movie star, rapper, or trust-funder get out of their Ferrari wearing an Audemars carrying an iPhone than a Vertu, and Beats headphones rather than Sennheisers.
That's a powerful, rare achievement in brand position and it makes sense for one company which has truly mastered the art to snap up an upstart that seems to be on track to accomplish the same thing.