Apple Plans to Shut Down Beats Music
Apple will discontinue the streaming music service Beats Music it acquired in May, according to five sources, including several prominent employees at Apple and Beats. Many engineers from Beats Music have already been moved off the product and onto other projects at Apple, including iTunes. It’s not clear when exactly Jimmy Iovine and Dr Dre’s music service will be shut down or what Apple will do with streaming, but every source with knowledge of the situation that we talked to agreed Apple plans to sunset the Beats Music brand.
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Considering Apple’s penchant for simple, unified brands, and how it despises fragmentation, shutting down Beats Music makes a lot of sense. Running a second music service in parallel with iTunes that forces people to learn a whole new interface might have confused customers. Beats Music’s CEO Ian Rogers was also put in charge of iTunes Radio, meaning he’s already splitting his time rather than just focusing on Beats Music.
I’m not expecting them to rebrand the headphones as Apple, though.
Update (2014-09-22): Peter Kafka (via Kirk McElhearn):
I can elaborate a bit more, based on conversations with people familiar with Apple’s thinking: Apple won’t shutter the streaming service. It may, however, modify it over time, and one of those changes could involved changing the Beats Music brand.
