Apple’s acquisition of Beats Audio for a mammoth $3 billion USD was definitely not done just because the company was feeling magnanimous in turning Dr. Dre in to the world first billionaire rap artist. The iPhone maker plans to re-launch Beats Music as a part of its popular music store, iTunes by next year. Beats Audio, which is a music streaming service, will be integrated in to iTunes to provide more flexibility for music connoisseurs.
While the company was doing exceptionally well in the smartphone industry, having sold 10 million combined units of the iPhone 6 and the iPhone 6 Plus in just a small time span of three days, the same success cannot be spoken about the company’s music service. One of the primary reasons why Apple is assimilating Beats with its iTunes service is a no brainer; the company’s has started to suffer when digital music purchases are concerned.
2014 marked the very first time that sales coming from the iTunes store had plummeted, with high subscription service prices culpable for that demise. According to the Wall Street Journal, digital music sales in the iTunes store have taken a nose dive of 13 – 14 percent this year, compared to a single digit figure recorded last year. The upside to this news is that even though the company’s digital music service isn’t doing so well, the company seems to have reimbursed that loss through revenue generation coming from apps, ebooks and other digital sales.