Beats Electronics Won't Renew Contract with Monster for Headphones
January 13, 2012 9:36 AM
comment(s) - last by
The relationship went downhill due to financial terms
Beats Electronics and Monster Cable Products have decided to go their separate ways once their contract expires later in 2012.
Beats Electronics, a
brand of headphones
and loudspeakers that is marketed by hip hop artist Dr. Dre and Interscope-Geffen-A&M Records chairman Jimmy Iovine, has decided not to renew its five-year contract at the end of the year with electronics company Monster Cable Products, which manufactured the headphones since 2009.
The relationship went downhill due to financial terms, according to
. Both sides would argue over who deserves the most credit for the idea and for the success of the top-of-the-line headphones.
At the Consumer Electronics Show in Las Vegas this week, Noel Lee, chief executive of Monster Cable Products, unveiled some of his plans for the future of his company post-Beats Electronics. While Beats tends to cater to young 20-year-olds, Monster is looking to appeal to other groups such as athletes, business professionals and women. He showed off some of the company's new headphones at CES, which are now available for pre-order.
An example of Monster's new offerings is a pair of in-ear headphones dubbed the Miles Davis line where the buds are shaped like trumpets and have volume controllers that look like piston vavles. There are currently eight new lines.
"We can be the Apple of the headphones space, with or without Beats," said Lee.
Beats will continue to hold the rights to the sound technology, the brand and the circular design after the break-up. While Beats can be found in
, HP computers and the Chrysler 300 S sedan, it's looking to expand into audio gear for athletes and TVs as well.
"We have very big ambitions for Beats beyond headphones," said Iovine. "Music has got to succeed on the phone or else the record industry will never thrive."
As far as the split goes, Iovine said, "They're doing their thing, and we're doing ours."
And the beat goes on.
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RE: I still do not know what Beats Audio is...
1/13/2012 11:15:17 AM
You're probably not far off with your assessment. As near as I can tell, Beats by Dre has offerred no firm establishment of guidelines or requirements for a part to be desginated as certified. It's more about style and marketability. I don't doubt that some Beats equipment is of high quality, but I think it's all summed up by this YouTube video from CES 2009: Ut5feMt9zkg .
It's sort of like modern day THX - it's everywhere and it really doesn't mean much anymore. You can buy a THX AVR or THX speakers, but does the listening environment have the proper acoustic treatments? Did you manually calibrate the sound and video to reference levels? At the end of the day, consumers see the THX logo or Beats logo and say, "yes, this is worth $$$ because why would they lie?"
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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