Apple has long been rumored to be developing their own streaming service, but it appears they could not innovate quickly enough, which could prove to be a negative turning point in the ongoing saga of Apple, a company that has not released a truly new product since the iPad in 2010.
Through its iTunes store, Apple created the market for music digital downloads, but there are plenty in the industry that believe that model is dead. Streaming services, where subscribers pay $5 to $10 for unlimited listens of huge catalogs, continue to see strong growth, especially through mobile devices.
The company also has iTunes Radio, which is an ad-supported “radio” service similar to Pandora, meaning general music services remain a key theme for Apple.
Beats was founded by music producing legends Dr. Dre and Jimmy Iovine, and at $3.2 billion the acquisition would be the largest ever for Apple.