Other Three Reasons Why The Purchase of Beats Makes Little Sense for Apple

A few days ago my colleague Eduardo Archanco disaggregated into four points the assets purchase of Beats should bring to Apple the deal is finally confirmed: the technology and the know-how of its famous helmets and speakers, the BeatsAudio software (currently integrated in Chrysler, Fiat and Dodge vehicles), and the streaming service Beats Music with its interesting recommendations filtered directly by DJs and music experts.

But there is more. Both at the level of brand as human, Beats is a deal he ever paints better, and that goes beyond the obvious to approaching Apple even more artists, record labels and Hollywood studios, Yes Hollywood, while it gets pass in your pocket to young Americans of color, a demographic that until now has been closer to Android to iPhone.

Jimmy Iovine, the most important signing for Apple in its 15 years of history

If we look at the rumors, the co-founder of Beats will become part of the picture of the Apple executives, to redefine and lead the efforts of Apple in the music industry and entertainment. Iovine is perhaps one of the best connected men in the music industry and is in addition to its role in the Beats, it is also the CEO of Interscope Records, one of the biggest record labels on the planet.

Iovine is considered one of the executives with more vision of the future of the music industry

Eminem Lady Gaga, Lana del Rey, OneRepublic and Imagine Dragons. All are part of the seal that the own Iovine founded 25 years ago and which have last names like Madonna, Nine Inch Nails, Papa Roach, or Nelly Furtado among many others. And not only that, your contacts extend also to the film industry where it is not no stranger with the success of 8 mile, a film co-produced by Iovine who earned Eminem the honor of becoming the first hip hop artist to get a statuette from the Academy.

Iovine is considered one of the executives with more vision of the future of the music industry and his friendship with Steve Jobs It was made possible products like the iPod with the seal of U2 or the appearance of the player of the Apple in the rapper 50 Cent music videos; a maneuver of product placement that worked even better than expected and that Iovine would apply to his own Beats helmets to become an icon.

It is said that even tempted to Jobs with the possibility of launching a streaming service years before Spotify were a reality so that if someone is valuable for Apple now that sales of the iPod come very close to historic lows, iTunes Radio fails to take off and Apple TV aims to become more than a hobby, thats Iovine. Did I mention that his current contract with Interscope expires this year? To believe in coincidences.

Dr.Dre and mark Beats

Beats are the iPhone’s helmets. It may not have the best quality audio of the market (similar to the iPhone does not look, nor by far, the larger screen) but are on everyone’s lips, they are an item that has a clear cultural influence, talking of you, or at least the image you want to project both or more than sneakers or any other fashion item.

His influence within the U.S. black population is very important

Much of this achievement is due to the role of the other co-founder of the company, Dr.Dre, the largest producer of hip hop of all time behind the careers of many rappers including names such as Snoop Dogg, Eminem, Xzibit, 50 glow Cent, The Game, & Kendrick Lamar.

His influence within the U.S. black population is very important, a sector for which Apple has never had the same cache and that the iPhone does not have too many followers. According to Nielsen data, 71% of black America used smartphone (the highest rate of any demographic group), but 73% of them have opted so far for Android phones instead of the iPhone. Dr.Dre can help change that.

In terms of Beats, a consolidated brand within this succulent group, why not keep it? Apple is famous for store brands of companies that acquires, but integrate them within its own structure, but are perhaps not used nowadays other brands to own Apple? Are iPod, iPhone, iPad or Mac same brands itself? “Apple Beats” sounds not weird at all, don’t you think?

Next stop, Los Angeles

The Cupertino company is one of the few giants of Silicon Valley who has not succumbed to the charms of Silicon Beach. While Yahoo, Google, Facebook and Twitter have offices in Los Angeles that allow them to be closer to Hollywood and the community of artists moving through the area, Apple chose Austin, Texas, as position advanced in the United States outside its headquarters, a decision that surely will have their own benefits but leave them out of this trend.

Beats on the other hand was born in Santa Monica, Los Angeles, and just a few days until the agreement with Apple out in front of The New York Times and Bloomberg, the company began the transition of its 300 employees to a new campus in Culver City a few 20 minutes from Hollywood. It’s an office of more than 9,200 square meters, perfect for Apple plant foot is a city that can be really important for the aspirations of Apple.

And if Apple is planning to launch his own record label?

PCs this so-called procurement-procurement of Iovine and Dr.Dre finally opening up another interesting possibility. And if Apple is planning launch your own record label to move from number intermediary to completely control the next generation of artists? Google has flirted with the idea through its service Google Play Artist Hub but these two heavyweights on board, Apple could mount something on another order of magnitude.

Do you still think you… do “strange” the acquisition of Beats by Apple?