On Apple Buying Beats
Yesterday morning my piece on how Apple should open iTunes as a way to change the future of streaming was published. In the afternoon it was reported that Apple is close to buying Beats–both the headphones and streaming music service.
Here are a few things worth considering.
Apple doesn’t need Beats to get streaming music rights.
The streaming rights negotiated to specific services don’t transfer in acquisition deals, so the deals Beats has in place wouldn’t benefit Apple.
There are plenty of streaming music services (too many?) so another one getting the streaming rights wouldn’t likely be an issue.
Also, as announced on the recent Apple earnings call, iTunes has 800 million accounts. The labels know that if they don’t negotiate a deal Apple could open direct access to the music store and encourage artists to bypass the record labels altogether.
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