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by Scorponok 4418 days ago
Other services (like spotify) have tended to have clauses in their licenses saying something like "If you get acquired, the deal is cancelled and you have to renegotiate it" so that the record companies can prevent exactly this from happening. I would be surprised if Beats doesn't as well.

That means that it doesn't matter if Apple (or anyone else) buys someone who already has a deal - the previous terms go away and the record companies get to start the negotiations all over again.

2 comments

Don't forget Beats is run by a record label boss. He is extremely well positioned to make those deals.
True, but if they have a system ready to roll and are in a good negotiation position (iTunes is effectively a monopoly) it puts a lot of pressure on the labels to sign