“Two of music’s most successful brand marketers, Jimmy Iovine and Dr. Dre, are in the hot seat as label sources grouse that the first 100 days of the duo’s subscription streaming service, Beats Music, has been a disappointment and soon will face competition on the mobile platform when Sprint begins bundling Spotify with its ‘Framily’ plans.”
“Jimmy is finding out this is tougher than it looks,” says one senior executive. “This business takes time.”
“Some label executives also contend that Iovine and Dre’s success at building Beats Electronics into a world-class brand in just five years created unrealistic expectations for their streaming service. ‘We are rooting for them,” says one.”
But is it really that bad? Billboard’s sources estimate that Beats currently has paying subscribers in the ‘low six figures,’ while Spotify is protecting a fragile US-based lead of 2 million.
Image by Duncan Hull, licensed under Creative Commons Attribution 2.0 Generic (CC by 2.0).