Beats Electronics, LLC is a producer of audio products and equipment headquartered in Santa Monica, California. The company was founded by hip-hop/rap artist and entrepreneur Andre "Dr. Dre" Young and Interscope-Geffen-A&M Records chairman Jimmy Iovine, and primarily produces products under the brand Beats by Dr. Dre.
Since its inception, its products have been primarily manufactured and developed in collaboration with consumer electronics company Monster Cable. The collaboration has led to financial success for both companies—Beats headphones accounted for 9% of the monetary value of the headphones market[where?] in the year 2010, and has also led to competition from other headphone brands seeking to emulate the success of Beats by introducing lines with similar celebrity endorsements.[1]
Dr. Dre, Jimmy Iovine, Universal Music Group and HTC Corporation all own shares in Beats.
The company was founded in 2006, and debuted its first product, Beats by Dr. Dre Studio headphones, in late 2008. Monster was granted exclusive rights under a 5 year-contract to manufacture and develop Beats-branded headphones. With Monster handling production of the products, Jimmy Iovine and Dr. Dre were now free to handle promoting the new line. Beats would primarily rely on celebrity endorsements, particularly by popular musicians, to help market the line to young people.
In August 2011, mobile phone manufacturer HTC acquired a 51% majority share in Beats for $300 million. The purchase was intended to allow HTC to take advantage of Beats' popularity and promotion in order to position itself as a bigger competitor to other smartphone makers.[2] The purchase also granted HTC exclusive rights to manufacture smartphones with Beats-branded audio systems.[3] Despite its majority acquisition, HTC would still allow Beats to operate as an autonomous company
On January 12, 2012, Business Week reported that Beats and Monster would not renew their production contract and would be ending their partnership by the end of 2012.[1] Monster began to market its own line of headphone products at the start of the year, aiming towards an older demographic, women, and business professionals.[1]
In March 2012, reports surfaced that Beats was planning to acquire the online music service MOG.[4] The acquisition was officially confirmed on July 2, 2012, reported to have been between $10 to $16 million. Beats chose to acquire MOG due to its use of high quality streams for its music library—which supports Beats' aim to create "a truly end-to-end music experience." The acquisition will not include the company's blog and advertising network, the MOG Music Network.[5][6]
In July 2012, HTC sold back 25% from its 51% of its shares in the company, in order to provide "flexibility for global expansion while maintaining HTC’s major stake and commercial exclusivity in mobile.
I love this Headphones but the problem is i cant afford....
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