Is Apple Nixing Beats Music or Not?

When Apple bet $3 billion on Beats Music and Beats Electronics in May, the music-listening world lit up with speculation about what the tech giant would do with its newly-acquired assets. The first big rumor suggested Apple would shutter Beats Music.

But it seems technology news headlines heralded the death of the $10-a-month steaming music service a little too quickly. Apple has since publicly denied plans to pull the plug on Beats Music, which was developed by a team of people who have spent their careers in music and has resulted in curated content thatEUs a big hit with big stars.

Indeed, Beats hit the market five years ago and has become a massive cultural hit. With the cache of its iconic co-founders, Dr. Dre and Jimmy Iovine, Beats has attracted the likes of Lady Gaga, Lil Wayne and Nicki Minaj to design their own customized Beats headphones and speakers.

An already iconic Apple becomes automatically more hip with Beats in its back pocket, but what happens to the music service remains up in the air.

A Measure of Logic

We asked Greg Sterling, Vice President of Strategy & Insights at the Local Search Association, for his thoughts on all the hubbub around AppleEUs plans for Beats Music. He told us Apple has clearly denied plans to shut down the music service. That said, he noted, there is a measure of logic to the rumor.

EUIt's about not maintaining two separate brands around streaming music. The conventional wisdom is that Beats was acquired mostly for the streaming service. But Apple would like to promote iTunes Radio and not advance another brand at the expense of iTunes,EU Sterling said.

EUThis merger of Beats Music into iTunes is probably going to happen but it's probably a decision whose timing has not yet been firmly made. Thus it may...

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