Apple today announced they had finalized their purchase of Beats, which includes products like the infamous headphones and Beats Music, the upstart streaming music service. Part of the acquisition includes talent coming over to Apple, notably co-founders Dr. Dre and Jimmy Iovine. Another key figure is Ian Rogers, who had been CEO at Beats Music. According to the Wall Street Journal, Rogers will now head up iTunes Radio, in addition to his current position manning Beats Music.
A post on Apple’s website officially welcomes the Beats Music and Beats Electronics organizatons “to the Apple family” and declaring their shared love of music. “… we’re thrilled to join forces with a group of people who love it as much as we do.Beats cofounders Jimmy Iovine and Dr. Dre have created beautiful products that have helped millions of people deepen their connection to music. We’re delighted to be working with the team to elevate that experience even further.”
The 3-billion dollar deal provides Apple with alternatives for all types of customers. The iTunes Store, despite lagging sales, remains a primary destination for music purchases. Beats Music fills an all important void, giving Apple a mature streaming music service. Beats Music launched earlier this year and soon after, established themselves as a worth competitor to stalwarts Spotify and Rdio. Lastly, Apple’s iTunes Radio, provides the Pandora of the three-headed monster. It has yet to gain major acceptance, so could benefit from the experience offered by Rogers.
As a result of the acquistion, Apple is reportedly cutting 200 of the 700 Beats employees due to overlap in job responsibilities. These positions are in human resources, finance and support services. Apple does intend to assist those affected by providing other opportunities within the company.
Ian Rogers will report to Eddy Cue, senior vice president of Internet Software and Services at Apple.