Why Apple won’t kill off Beats Music

Apple has denied reports it’s planning to axe the recently acquired Beats Music streaming service.

Why Apple won't kill off Beats Music

TechCrunch reported yesterday evening that the service will be discontinued, citing “five sources, including several prominent employees at Apple and Beats”.

The outlet pointed to the fact that many engineers who joined Apple following the acquisition have been moved on to other projects, including iTunes.

However, Apple has issued a statement saying the reports are “not true”, although it admitted it may “modify” the service over time, which “could involve changing the Beats Music brand”.

Streaming strategy

Apple’s $3 billion (£1.79 billion) acquisition of Beats was driven by the streaming service, rather than its high-end headphone business.

The company has long been trying to crack the music-streaming sector and Beats Music was lauded by CEO Tim Cook as the first music subscription service to “get it right”.

Eddy Cue, Apple’s senior vice president of Internet Software and Services, said at the time: “The addition of Beats will make our music line-up even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store.”

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