Headphone manufacturer Beats Electronics is looking into the streaming market, with co-founder Jimmy Iovine telling Bloomberg Businessweek that he feels "subscription music online is culturally inadequate" and "it’s not satisfying right now." His comments come after rumors of a Beats buyout of MOG surfaced at the end of last month, though while several places have reported that the deal was complete, neither Beats or MOG have yet provided any confirmation.
"I can't show the magic trick"
Iovine sees streaming as an opportunity where download markets are not — he says that Apple has made the downloading experience "very, very good" — since he believes none of the streaming providers have managed to draw the hundreds of millions of subscribers needed to make the business model viable. What he's not telling is how he feels Beats can differentiate from other offerings. "I can’t show the magic trick, but right now the services are utilities. We only see things in a complete thought."
The creation of a Beats music streaming service could also be a key advantage for 51 percent owner HTC as it seeks to diversify into other areas. The Beats Audio EQ is already included on many of the manufacturer's handsets, so could a streaming service come next?