The End Of The Iovine Era At Apple
It’s official, Jimmy Iovine is leaving Apple Music in August. Mr. Iovine’s departure marks the end of the Beats merger era, since all the other senior Beats execs have already left Apple. So was Apple’s $3B investment in Beats worth the money? It’s sort of a mixed bag answer.
With the proliferation of connected devices you can get music streamed everywhere these days, so the oversized Beats headphones are past their prime. On the other hand, Apple did use Beats as a way to reinvent their flagging music strategy with the relaunch of Apple Music. As you can see in the graph below Apple is slowly, steadily growing its worldwide subscription base, and is actually on pace to overtake Spotify in US subs by the end of this year.
In my opinion the Beats acquisition was probably good for their long-term music pillar, but I think they overpaid for the cool factor of a product that was peaking a few years back.