Iovine

Beats reportedly talking to Apple about Daisy music service; picks up $60M in new funding

Wednesday, March 6, 2013 - 12:30pm

Apple is reportedly in talks with Beats Electronics on a possible music streaming service partnership.

Sources say Apple CEO Tim Cook and Internet products chief Eddy Cue met with Beats CEO Jimmy Iovine to learn more about the Beats' upcoming "Daisy" streaming music service.

Relatedly, Beats announced yesterday $60 million in new funding for the project from an investment group that includes Warner Music owner Len Blavatnik, to bankroll the service's planned late-2013 launch.

It was early last September when word first leaked that Apple was planning to launch its own customizable streaming music service (RAIN coverage here) -- but on that was more of an Internet radio/Pandora competitor.

Beats is the Dr. Dre/Iovine company that makes the popular Beats headphones, and owns music subscription service MOG (which is being rebuilt as "Daisy"). At CES in January, Iovine told AllThingsDigital's Peter Kafka he'd long been trying to push the late Apple founder Steve Jobs towards creating a streaming music subscription service (see RAIN coverage here). Also at CES, Iovine and his company named former Yahoo! Music and Topspin CEO Ian Rogers (RAIN coverage here) CEO of Daisy. More on Daisy in RAIN here.

Read more about Apple and Beats from Hypebot.com here and Reuters here.

Beats chief Iovine says he was pushing Steve Jobs for an Apple streaming service

Wednesday, January 16, 2013 - 12:25pm

Beats Electronics CEO (and Universal Music exec and record industry legend) Jimmy Iovine thinks that when it comes to creating a music service that fans will embrace, the tech guys don't stand a chance.

"I was shocked at how culturally inept most consumer electronics companies are... You can build Facebook, you can build YouTube, you can build Twitter — you can be a tech company and do that," he told AllThingsDigital's Peter Kafka at CES. "Subscription [music] needs a programmer. It needs culture. And tech guys can’t do that. They don’t even know who to hire. They’re utilities."

Obviously, Iovine has faith that his company, with "guys who know music and culture" like himself, Dr. Dre, and Trent Reznor at the helm, is far more suited to creating the killer streaming music experience.

"[Other music subscription] companies, these services, all lack curation... There’s no curation. That’s what we did as a record label, we curated," he said. "We are heavy on curation, and we believe it’s a combination of human and math... Right now, somebody’s giving you 12 million songs, and you give them your credit card, and they tell you 'good luck.' You need to have some kind of help. I’m going to offer you a guide... a trusted voice, and it’s going to be really good."

Interestingly, Iovine says he'd long been trying to push the late Apple founder Steve Jobs towards creating a streaming music subscription service.

"He wasn’t keen on it right away. [Beats co-founder] Luke Wood and I spent about three years trying to talk him into it... He didn’t want to pay the record companies enough. He felt that they would come down, eventually... I think in the end Steve was feeling it, but the economics... he wanted to pay the labels [for subscriptions], but [the fees were] not going to be acceptable to them."

At CES, Iovine and his company named former Yahoo! Music and Topspin CEO Ian Rogers (RAIN coverage here) CEO of Beats' music subscription service, codenamed "Daisy" (which will likely be a repurposed MOG, which Beats owns). More on Daisy in RAIN here.

Read the AllThingsDigital interview with Beats' Iovine here.

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