Beats Music
| Company type | Subsidiary |
|---|---|
| Industry | Music streaming |
| Founded | 2012 |
| Founder | Dr. Dre, Jimmy Iovine, Ola Sars |
| Defunct | November 30, 2015 |
| Fate | Integrated into Apple Music |
| Headquarters | United States |
Key people | Jimmy Iovine (Co-Founder and Chairman), Dr. Dre (Co-Founder), Luke Wood (President), Ian Rogers (CEO), Trent Reznor (Chief Creative Officer), Bozoma Saint John (SVP Marketing) |
| Products | Music streaming service |
| Parent | Beats Electronics (Apple Inc.) |
Beats Music was a subscription-based music streaming service operated by the Beats Electronics unit of Apple Inc., integrating algorithm-driven personalization with expert-curated music selections.
The project originated in 2012 under the codename "Daisy," leveraging Beats' existing consumer electronics expertise and its 2012 acquisition of MOG, a former streaming platform. The service became available in the United States on January 21, 2014.
Apple purchased Beats Music as part of its acquisition of Beats Electronics in May 2014. With the introduction of Apple Music on June 30, 2015, Beats Music ceased accepting new subscribers, who were subsequently transitioned to Apple Music before Beats Music was officially discontinued on November 30, 2015.
History
On July 2, 2012, Beats acquired the online music platform MOG for an estimated $10–16 million, aiming to establish a comprehensive music experience. This deal excluded MOG's blog and advertising assets, which were sold separately to Townsquare Media in August 2012. Initially, MOG continued to operate independently.
In December 2012, Trent Reznor from Nine Inch Nails joined as chief creative officer to lead the development of "Daisy," a novel service blending personalized listening data with professional curation to distinguish itself from rivals such as Spotify. The curation team featured industry experts including former IHeartMedia executive Julie Pilat. The initial launch was targeted for late 2013.
By August 2013, the service’s webpage was live under its official name, "Beats Music." The platform officially launched in January 2014 within the U.S. In February 2014, Beats Music secured a licensing agreement with the Merlin Network, representing key independent labels, ensuring royalty rates on par with major record companies.
On March 4, 2014, Beats Music acquired Topspin Media, a company specializing in monetizing connections between artists and their fans. Prior to this, Beats Music CEO Ian Rogers had departed from Topspin to join the streaming service.
Apple acquisition and shutdown
On May 28, 2014, Apple Inc. announced its acquisition of both Beats Electronics and Beats Music for a total of $3 billion in cash and stock. According to reports from the Wall Street Journal, Apple valued Beats Music at just under $500 million. Following the deal, founders Dr. Dre and Jimmy Iovine joined Apple’s executive team and stayed with the company for several years. Ian Rogers assumed leadership over both Beats Music and Apple's ad-supported iTunes Radio platform.
Subsequent reports revealed Apple's intention to integrate Beats Music with iTunes Radio. To enhance this new offering, Apple recruited British DJ Zane Lowe as a music curator. During negotiations with record labels, Apple reportedly encouraged them to withdraw content from free ad-supported tiers on competitors like Spotify to increase adoption of its own service. This included urging Universal Music Group to remove material from platforms such as YouTube. These actions triggered investigations by the United States Department of Justice and the Federal Trade Commission over possible anti-competitive conduct.
Apple Music was introduced at Apple's Worldwide Developers Conference on June 8, 2015, and launched later that month on June 30. With this rollout, Beats Music was phased out; users were able to seamlessly transfer their subscriptions, accounts, playlists, and saved tracks to Apple Music.
Features
Beats Music provided subscribers with access to a catalog exceeding 20 million tracks available on demand, including the option for offline listening. Its customization system integrated algorithm-driven suggestions with expert curation, featuring playlists crafted by music industry professionals and media outlets such as Rolling Stone, Rap Radar, and Pitchfork. Search results favored original master recordings rather than cover versions. The innovative "The Sentence" tool enabled users to generate playlists by choosing descriptive terms related to activities, moods, and music styles.
The standard subscription was priced at US$9.99 per month or US$99.99 annually, supporting usage across three devices via web browsers and applications compatible with Android, iOS, and Windows Phone. At launch, Beats Music also integrated support for Sonos wireless speaker systems. Additionally, a family subscription plan was offered for $14.99 monthly, accommodating up to five members and ten devices, exclusively through AT&T Mobility, which also provided extended trial periods.
Marketing
In February 2014, Beats Music gained significant exposure through a prominent Super Bowl XLVIII commercial starring Ellen DeGeneres. The advertisement humorously reimagined the classic tale The Three Bears, casting Ellen as Goldilocks, thereby enhancing brand recognition during a major televised sporting event.
Personnel
- Jimmy Iovine – Co-Founder and Chairman of the Board for both Beats Electronics and Beats Music
- Dr. Dre – Co-Founder of Beats Electronics and Beats Music
- Luke Wood – President of Beats Electronics and Vice-Chairman of Beats Music
- Matthew Costello – Chief Operating Officer at Beats Electronics
- Ian Rogers – Chief Executive Officer of Beats Music
- Fredric Vinna – Head of Product for Beats Music
- Bozoma Saint John – Senior Vice President and Global Marketing Lead at Beats Music
- Trent Reznor – Chief Creative Officer of Beats Music
- Ola Sars – Co-Founder and Chief Operating Officer of Beats Music