Apple has begun pushing the Beats Music streaming service via email to iTunes customers. The emails promote the free-to-download Beats Music app’s “Just For You” and “Tune Your Taste” features and note that Beats is now “part of the Apple family.” Apple finalized its acquisition of both Beats Music and Beats Electronics at the beginning of this month, and Apple has already begun promoting Beats Electronics via a new section on the online store and notable discounts. This email push is the second Apple promotion of the streaming app as the company has already integrated the app into the App Store’s “Apps by Apple” category. Full email below:
A couple weeks following the closing of Apple’s acquisition of Beats Electronics and the Beats Music streaming service, Apple has cut the price of all Beats by Dr. Dre products by 10% in both its physical retail stores and official online store…
Apple has prominently featured its own suite of free apps when iOS users first open the App Store, such as its iLife and iWork apps, for a while. Now that Beats Music and Beats Electronics are officially part of the family, the Beats Music app is now appearing on this ‘Apple Apps’ list as well. Beats Music is currently the last entry in the list, described as a way to ‘listen to music that’s always right for you’.
Tapping ‘Download All’ will install Beats Music alongside Apple’s other apps. Naturally, one way for Apple to significantly increase adoption of the service is to advertise it to every new iOS user.
The view will show up for new iOS devices or by performing a clean restore to a version of iOS 7, on both iPhone and iPad.
As Apple’s acquisition of Beats Electronics and Beats Music nears completion this financial quarter, the Cupertino and Culver City, California-based companies have begun work on transitioning select employees and technology resources from Beats to Apple, according to sources briefed on the transition. Apple executives have visited Beats’ Southern California headquarters this week and last week to offer groups of employees positions at Apple and to notify some members of the Beats staff that they will not be included in the transition.
Many Beats employees in development and creative roles have been offered positions at Apple. Many of these employees will be offered space in Apple’s Cupertino offices, but Apple is said to plan to retain the Los Angeles-area offices, and select engineers on the Beats Music streaming service will continue working out of Southern California. An email from Apple CEO Tim Cook detailed earlier this year that Beats hardware employees would transition to Phil Schiller’s team in Cupertino, so it seems likely that the headphone and speaker makers will make up the majority of the new Cupertino staff…
The European Commission has today approved Apple’s acquisition of Beats Electronics and Beats Music. The commission said that the buyout passes merger regulations. The commission concluded that Apple and Beats’ combined marketshare in both the streaming music and headphones markets is low, so an acquisition did not materially affect competition.
In headphones, the EU says that Apple/Beats exists in a global market with numerous other brands, including Bose, Sennheiser and Sony. For streaming music, companies like Spotify and Deezer offered a similar safety buffer. As the EU commission cares only for European operations, the fact that iTunes Radio and Beats Music do not currently operate in European countries also helped the deal go through smoothly.
Update: Statement from Bose regarding the complaint below the fold…
Bose has filed a legal complaint against Beats Electronics over the use of noise-cancelling technology used in their headphones, according to CNBC. Apple, of course, announced earlier this year plans to acquire the headphones maker in a $3 billion deal, which it expects to gain regulatory approval for by the end of September.
Re/code reports that Bose has filed a request with the International Trade Commission to ban the sale and import of certain Beats products. The following patents owned by Bose appear to be relevant in the complaint: Read more
As we mentioned last month, Apple will today host its quarterly conference call to discuss its earnings report from the third quarter of its fiscal year: this includes 35.2 million iPhones, 13.2 million iPads, 2.9 million iPods, and 4.4 million Macs. Apple reported today that it earned $37.4 billion in revenue during its Q3 period.
This will be the first quarterly conference call with analysts and investors since Apple announced its plans to acquire Beats Electronics and Beats Music in a $3 billion deal that it expects to clear regulatory approval by the end of the current quarter in September. Today’s call also will be the first since Apple’s developer conference in June as well as Apple’s announced partnership with IBM to bolster the iPhone and iPad effort in the enterprise. It also marks Luca Maestri’s first call as CFO since Peter Oppenheimer’s retirement, although Maestri has been present on past calls.
Investors and analysts will surely focus on Apple’s new product plans for the remainder of this year, though, and we’ll be listening to bring you coverage starting at 5pm EST/ 2pm PST. Read more
In the weeks between the Apple-Beats acquisition first being reported as being in final talks and the two companies both officially announcing the deal, Billboard interviewed Daniel Ek, the CEO and co-founder of the streaming music giant Spotify, asking about his take on Apple becoming a subscription streaming music competitor through Beats Music.
At the time, Ek was reserved in saying too much about the proposition. “I don’t like speculating about things that haven’t happened,” Ek stated. He did, however, say that he always believed Apple would enter the streaming music space and doubled down saying Spotify is focused on “building the best possible product” while noting the service’s 40 million users with 10 million paid customers.
We’ve learned Apple has quietly introduced a new specification for manufacturers in its Made-For-iPhone/iPad/iPod (MFi) program that allows them to create headphones that connect to iOS devices using a Lightning connector instead of the usual 3.5mm headphone jack. Apple has not flipped the switch on the audio input support for Lightning cables and existing iOS devices, but it will release a software update in the future that will enable support in devices running iOS 7.1 or later. Read more
Judging by a roundup in The Wall Street Journal, analysts and investors appear not to share the enthusiasm for Beats acquisition express by Tim Cook and Eddy Cue. While Cook said he was “excited [...] about this new chapter in our history” and Cue believed that “combining the two companies will help [music] grow again,” Wall Street is more skeptical.
“To see this kind of money spent for a company that gets most of its revenue from hardware business is not what we want to see,” said Dan Niles, chief investment officer of hedge fund AlphaOne Capital Partners …
(Image via Re/code)
It’s typical in any acquisition for both parties to sing the praises of their new partner, and Eddy Cue was certainly playing his part at Re/code’s Code Conference, saying that Beats’ curated playlists were a key strength and would help music grow again. As Mark Gurman reported in his live blog coverage at Code Conference:
Cue said Apple bought Beats because “music is dying. It hasn’t been growing.” He said combining the two companies will help it grow again [...]
Cue said what makes Beats good is that it provides users with curated playlists.
He said: “When you bring what Beats has got and what we’ve got it’s not two plus two is four. It’s something much more than that” …