Article details messy Beats by Dre-Monster split
Complete with quotes and previously confidential images provided by Monster, a new article at Gizmodo paints a surprisingly negative picture of Monster’s relationship with Beats Electronics, discussing how Monster lost virtually everything it had built when Beats left for HTC. Interviews with Monster CEO Noel Lee and his son Kevin Lee detail how Monster and Beats formed a shaky business arrangement, wherein the Beats side retained ownership of everything Monster developed. According to the report, Monster also footed the bills for manufacturing and distributing the products. While Beats contradicted Monster’s claims of handling industrial and audio designs for the headphones, Monster offered audio engineering and industrial mockups, and Noel Lee claimed Beats had nothing to do with engineering: “Absolutely not, they don’t have any engineers.”
The article also acknowledges that Beats’ success came from astute marketing — not from the sound — and that the products were both overpriced and hugely profitable. Kevin Lee suggested that Beats were marketed as “the hottest product to have, and sound will be a Trojan horse. And that’s what we did. Beats was in every single music video.” Notably, iLounge’s reviews never gave Beats products higher than a flat B rating, with most falling below that, often citing unimpressive performance to price ratios as a key issue.
When Beats Electronics left Monster for a partnership with HTC, Monster was paid only a small amount—“more severance payment than cash-out”—while Beats retained the audio, patents, designs, and the name. The article notes that Beats made $519 million in sales during its first year with HTC — up from $219 million in the previous year — taking control of 64 percent of the $100 and higher “premium” headphone market.
- Pharrell’s new single will be exclusive to Apple Music
- Report: Apple Music cut deals with prominent indie labels, rights groups
- Google Play Music adds free, ad-supported streaming radio
- Royalty rates for artists during Apple Music free trial still unclear
- Apple caves to Taylor Swift, agrees to pay royalties for Apple Music trial period
- FCC to fine AT&T $100M for misleading unlimited data plans
- Apple exploring person-to-person Apple Pay transactions?
- Report: iPhone 6S to get 12MP camera, 4K video recording?
- Report: New iPhone 6S LTE chip could ‘double’ download speeds
- Cue: New iOS 9 beta coming next week
- iTunes 12.2 release includes support for Apple Music
- Report: iPhone 6S to look ‘nearly identical’ to iPhone 6
- Appeals court: Apple conspired to fix e-book prices
- Apple Music makes subscriptions available through carriers, adds iCloud Music Library
- Apple Music makes much-anticipated debut with iOS 8.4 release
- Apple Q3 earnings call set for July 21
- JBL Clip+ Bluetooth Speaker
- Monk Magnet Wallet Case for iPhone 6 and iPhone 6 Plus
- Just Mobile TimeStand for Apple Watch
- Soundfreaq Sound Kick 2 Wireless Travel Speaker
- iHome SoundFlask iBT32 Bluetooth Speaker
- IK Multimedia iKlip Grip
- Misfit Bolt Wirelessly Connected Smart Bulb
- Nomad Stand for Apple Watch
- MyCharge RazorUltra
- Ultimate Ears UE Roll Portable Bluetooth Speaker
- Instant Expert: Secrets & Features of iTunes 12.2
- Instant Expert: Secrets & Features of iOS 8.4 + Apple Music
- CE Week 2015: IK Multimedia, Monowear’s Apple Watch bands + More
- Live From CE Week 2015: Brand New iPad, iPhone + Mac Accessories!
- A First Look at iOS 9’s Transit in Apple Maps
- Opinion: The ‘Grand Experiment’ of shifting to Google Photos
- Will removing a credit card from Safari also remove it from Apple Pay?
- Can I mute Handoff calls coming into my Mac from my iPhone?
- How do I keep my iPhone calls from ringing on my Mac?
- Why doesn’t Traffic show up on my Today Notifications Screen?