Can HTC’s $300M Stake In Beats Electronics Crack Apple’s Music Stronghold?
HTC is taking one more strategic investment in digital content, this time in music. The company today is expected to announce that it is making a $309 million investment in Beats Electronics, a digital audio technology company, which it will incorporate into future products to court music-loving mobile consumers, and attempt to wrest some of Apple’s dominance in portable, digital music. The move follows from other investments it has made earlier this year, in UK video company Saffron Digital and cloud-gaming startup OnLive.
Beats Electronics provides a technology that it claims improves the quality of digital audio, something that its CEO, the music producer Jimmy Iovine, says has deteriorated since people have switched to MP3s from stereos: “an entire generation lost to bad-sounding music,” is how he described it to AllThingsD, which reported on the news late yesterday.
HTC is expected to formally announce this partnership Thursday and will be holding a press call around the news.
We have seen other examples of smartphone and tablet makers make moves on tech companies—in the form of strategic investments and content deals—as part of their strategy to enhance their entertainment/digital content plays.
Several have been more about investing in enabling technologies rather than for content itself…Read the full story at Paidcontent.co.uk