Apple and Beats in the Midst of Developing Music Streaming Service

Remember how last year when Apple purchased Beats for $3 million speculation began that the two mega companies would be forming a new music streaming service that could “rival Spotify”?

Well, it sounds like that time is coming closer.

In a recently published article in The New York Times, it appears that not only is Apple working on a new music streaming service, it will also be saying good-bye to the Beats name, something that they promised back in September would not happen.

One thing that has remained a constant since the announcement of the merge is that Nine Inch Nails frontman, Trent Reznor will be playing a part in the creation of this streaming service. Reznor, whose previous title was Chief Creative Officer of Beats Music before the acquisition, previously revealed he would be part of this new project, but what he would be actually doing has remained a secret.

“Beats was bought by Apple and they expressed direct interest in me designing some products with them. I can’t go into details, but I feel like I’m in a unique position where I could be of benefit to them. That does mean some compromises in terms of how much brain power goes toward music and creating. This is very creative work that’s not directly making music, but it’s around music.”

Sadly, according to NYT, this new streaming service will not have a free tier. The free tier has become a staple in luring customers to shell out big money for more music choices and no commercials.

Reznor had also voiced his opinion on this new era where people want music for free as opposed to paying to get the music that they want.

“I think paying for music is a relic of an era gone by. And I’m saying that as somebody who hopes you pay for music. I’ve spent my life trying to make this thing that now everyone thinks should be for free.”

Another difference between the current streaming services of the world and this new project? The pricing, at least that’s what Apple was trying to do.

Apple attempted to persuade record labels to agree to lower licensing costs resulting in Apple being able to sell subscriptions to its streaming service for $8 a month; the standard for services like Rhapsody, Rdio, and yes, Spotify is $10 a month. But that did not pan out the way they wanted. As the article points out, it reflects just how far behind Apple is in the music streaming game.

As for now, nothing is concrete on what Apple is trying do with this new music streaming service, but if people have to pay for it without a free trial, do you really think the consumer give it the time of day?

Apple to Shut Down Beats Music

UPDATE: 

A rep for Apple recently spoke to The Hollywood Reporter and Billboard and told both publications the reports that Beats Music will be shutdown is “not true.” A rep for Beats echoes Apple’s claim that the music streaming service will not be shut down.

Though for now they are claiming the service will not be shut down, another source told THR, Apple is “fully committed to offering a subscription service, though changes to any existing products are always a possibility.”

In other words, don’t get too attached.

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Just a few months after acquiring Beats in a move that was already in the cards, Apple has decided to call it a day on Beats Music, the streaming service that came along with the Beats name.

According to TechCrunch, the mega company has decided to put the streaming service to rest. The publication revealed that they had it on good authority on behalf of some “prominent employees” including several that were working on the project. Those sources had revealed that there has already been a shift in the staffing of those who were working on Beats Music while some who are not on the technical aspect have been told to continue with “business as usual.”

The tip-off of this occurring should have been seen for anyone who watched the iPhone 6 reveal last week or owns the new iPhone. While other Apple apps had been included in the newly released smartphone, Beats Music was nowhere to be found. To top it off, there had not been any mention of the streaming service recently unless you include the advertising towards new users with iOS7 and the note that U2’s new album was also available there.

With the close to $3 million acquisition, Beats Music CEO Ian Roger was put in charged of iTunes Radio leaving little to no time for his original product. There’s also that issue that Apple probably doesn’t want another music streaming services to challenge iTunes or have customers be forced to get to know a new music streaming service interface.

Maybe the rumors were right, Apple only wanted Beats so that they could have their foot in the headphone’s race as well as get the talent of Jimmy Iovine and Dr. Dre on their side.

No matter what, but it looks like Apple is getting their wish of world domination. RIP Beats Music, have fun in Apple heaven with the other iPhones and iPods.

Apple Officially Acquires Beats

It is now official; Apple and Beats are now one company. 

 

After months of debates and talks, the two companies have finally confirmed the $3 billion acquisition in two separated posts earlier today. The deal was reportedly approved by the European Union earlier this week. 

 

In Apple’s posting, the mega-corp. said that it is “excited to officially welcome Beats Music and Beats Electronics to the Apple Family. Music has always held a special place in our hearts and er’re thrilled to join forces with a group of people who love it as much as we do.”

 

The go on to talk about the products and the beauty of them as well as the excitement for them to be working with the team at Beats. 

Sadly, this joint venture and acquisition means that many employees at Beats will be heading towards the unemployment line. Due to the redundancy in positions such as areas in Human Resources and legal, many of those employed by Beats will now be out of a job. 

 

For Beats, they said that they are excited  and ” are fortunate to add out instruments to this legacy by joining Apple. The products we build together will allow us to reimagine sound once again.”

 

Also coming with the acquisition? The fact that all Beats customers have been notified that all sale, complaints and/or questions will now be routed through the Apple Online Store. No word on how Trent Reznor feels about this. 

 

Well, we guess this is what the overpriced apocalypse looks like. 

Trent Reznor Not Leaving Beats Electronics

Over the weekend, word had gotten around that Nine Inch Nails frontman Trent Reznor would be leaving Beats Electronics, the company to which the rocker is the Chief Creative Officer for. The rumor began after Apple purchased the company for $3 billion earlier in the week, but according to a spokesperson for the company, it is not true.
 
“They are all false” the spokesperson told Rolling Stone when asked about it. Since the initial talks began about the buyout, Reznor has been quiet, not once confirming or denying the buyout rumor that eventually became a reality. At the present time, it is unclear what Reznor’s role and responsibilities will be with the newly purchased company.

The singer was hired back int he beginning of 2013 to help build the company’s streaming service with Beats co-founder Jimmy Iovine. At the time Iovine said that Reznor would “bring an emotional connection back to the act of music discovery.”

Three months after being asked to join forces with the company on their new project, Reznor revealed the news to his fans via Facebook.
For Reznor, joining the company was like completing the circle because Iovine was the one who signed Nine Inch Nails to Interscope.
 
“It was pretty mind-blowing,” Reznor told Rolling Stone. “He asked me to solve a problem with the hardware he’d been having- an interesting riddle to me. I’d hear him speaking excitedly about his concept of a streaming service with curation at the forefront. My eyes lit up. I said ‘Hey, in my own world, I’d agree that a product like that feels like the right move, from a consumer standpoint.’ We started executing that. I think I’m the longest employee here now at this point.”

Considering how Reznor feels about Apple, it would not have been much of a surprise that “he left” rumors had begun. Reznor has previously been critical of them, slamming the company in 2009 after the iTunes Store banned Nine Inch Nails’ The Downward Spiral app.

“You can buy ‘The Downward Fucking Spiral’ on iTunes,” he said, “but you can’t allow an iPhone app that may have a song with a bad word somewhere in it …Hey Apple, I just got some spam about fucking hot Asian teens through your e-mail program. I just saw two guys having explicit anal sex right there in Safari! On my iPhone! Come on Apple, think your policies through and for fuck’s sake get your app approval scenario together.”