According to Reuters, “Apple Chief Executive Tim Cook met with Beats CEO Jimmy Iovine during a visit to Los Angeles in late February to find out more about Beats’ “Project Daisy”, a music subscription service the company announced in January but with scant detail, the sources said.
“Apple’s Internet products chief Eddy Cue, a key player in setting up its iTunes Music Store, also joined the meeting, at which Cook expressed interest in Daisy’s business model and its rollout plans, although the two did not discuss specifics of a deal, the sources said.
“The meeting between Cook and Iovine, who is also chairman of music company Interscope-Geffen-A&M, was “informational” and covered a broad range of music-related topics, the sources said.”
Apple, of course, “declined to comment”.
Why is Beats suddenly interested in tying the knot with Apple? The report says, “The music recording industry has languished through more than a decade of declining revenues and sputtering growth. Industry sources say many of the largest companies are beginning to warm to the idea of collecting fees on music streamed over the Internet, as the use of smartphones and tablets explodes around the world.
“It remains a nascent market, dwarfed by music sales via outlets such as iTunes, but one that is attracting investment.
“The meeting between Apple and Iovine was set up in January, immediately after Beats announced Daisy without explaining the upcoming project’s business model or how it plans to differentiate itself from existing services such as Spotify and Pandora, one of the sources said.”
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