Report: New Beats Streaming Music Service Partners With AT&T
July 9, 2013 at 4:28 AM (PT)
The music industry will have another major player in the streaming business when BEATS ELECTRONICS CEO JIMMY IOVINE rolls out a new subscription music service in the next few months. CNET reports he plans "to do so with some big marketing muscle help from AT&T. In recent weeks, IOVINE has been in talks with top execs from the major music labels and AT&T, according to people familiar with the talks. The goal, sources say, is to bundle Beats' upcoming service, called DAISY, with AT&T data plans as a way to gain a big audience quickly."
In MARCH (NET NEWS 3/6), ALL ACCESS reported the new music subscription service co-founded by JIMMY IOVINE and DR. DRE received $60 million in funding from an investor group headed by WARNER MUSIC owner LEN BLAVATNIK.
DAISY has been in the works for some time, since BEATS acquired the digital music service MOG in JULY of last year (NET NEWS 7/3/2012). At the time, terms of the deal were not disclosed, but executives familiar with the transaction said BEATS, whose products include BEATS BY DR. DRE headphones, paid less than $10 million for MOG, a streaming service with about 500,000 registered users.
What will make DAISY different, reports CNET, is that "DAISY will be powered by a mix of humans and algorithms, and IOVINE has enlisted music masters -- artists, DJs, and others with deep knowledge and experience in producing music -- to come up with playlists. It's the highest profile music service to rely so heavily on people to select the music. NINE INCH NAILS front man TRENT REZNOR will serve as the music service's Chief Creative Officer."