Apple May Unveil Iovine, Dr. Dre Executive Appointments at WWDC
J Thoendell stashed this in Music
Iovine and Dre, co-founders of Beats, are in talks to sell the company for $3.2 billion to the iPhone and iPad maker in a deal which is expected to be announced later this week.
Both are expected to join Apple in yet-to-be confirmed executive roles. One person said Iovine would likely oversee all of Apple’s music strategy and handle relationships with labels and publishers.
Though Apple is the music business’ biggest customer, its relationships with some of the music companies has at times been strained as it has tried to figure out how to cope with dwindling download sales. For example, iTunes executives have suggested that labels provide exclusive albums for downloads ahead of streaming services such as YouTube and Spotify.
Several industry insiders and commentators believe the Beats deal is partly prompted by Apple’s desire to get in to the subscription streaming space as download sales tumbled more than 13% in the first quarter and continued to shrink. Apple’s iTunes Store is the leading digital music store in the United States, with more than 70% of song and album download sales.
Those are some very clever reasons for Apple to do the deal:
1) Get executives who are part of the music industry. Jimmy Iovine is an advisor to American Idol, too.
2) Get a decent streaming service that can be branded "Apple Beats". Yeah!!