Beats Music Is Said to Raise Up to $100M

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March 11 (Bloomberg) -- Beats Music the subscription streaming service from rapper Dr. Dre and record producer Jimmy Iovine, raised a second round of funding from existing investors, said three people with knowledge of the deal. Cristina Alesci reports on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

They're looking to make a big splash.

They spent a lot of money on a marketing.

Then a super bowl spot.

If you look at the business model, it is not a cheap business model to run.

This is an on demand streaming site.

If you put in a sauna, you get that song played.

It is on the radio services out there like pandora where you put in a song and it uses that input to give you songs like it.

But not that actual song.

The rights to be able to deliver that on-demand music, that is more expensive right to negotiate out of the record companies.

Not to mention the fact that there are humans behind the curated playlist and not just computerized.

They have a more expensive business model.

There are more costs upfront.

There are not ad-based.

If you're buying off a subscription, you had better be delivering the cam a premium service people are willing to pay for.

That requires development costs.

Investors are who?

There are rich people.

You have the billionaire with access industry.

You have mark roe in of apollo.

There are other not well-known investors, but very wealthy people are investing.

I did know they could be others.

They think it is cooler.

These are the same people who brought us the really cool headphones everybody walks around with.

Then a bunch of music executives that are running this company.

Luke woody and jimmy i have been , they make this product cool.

They are brand in another themselves.

They have built up a strong catalog of songs and put them on the same beat as spotify.

They are rolling out more and more services.

At the end of the day, analysts say you need between five and 10 million subscribers to make a streaming music site profitable.

We do not have those numbers yet.

You would suspect that if they come out with those numbers that they will try to reach those

This text has been automatically generated. It may not be 100% accurate.


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