Beats Electronics Not Renewing Partnership With Monster
Beats by Dr. Dre is a company that was founded in 2008 by Dr. Dre and Jimmy Iovine. Beats by Dr. Dre is a brand of headphones and loud speakers and they worked closely with Monster Cable to manufacture to electronics. “Guys were making headphones that looked like medical equipment,” stated Iovine. Going forward, it appears that Beats by Dr. Dre will not be working with Monster due to financial disagreements.
Monster Cable has been developing the headphones and speakers through a license agreement. Beats by Dr. Dre have been successful as their products have captured about 53% of the $1 billion annual headphone market last year according to NPD Group.
Monster helped design the headphones and they even took credit for the idea. “They wanted to do speakers and I said, ‘The new speaker is the headphone,’?” stated Monster Cable CEO Noel Lee.
Now Monster Cable has to get used to the idea of not working with Beats by Dr. Dre, which will be difficult because 60% of the company’s revenue and profit came from the Beats audio gear. Beats will be retaining the rights to the bass-thumping technology, the brand, and the circular design.
Last year Lee asked half of the company’s 650 employees to come up with Monster-branded headphones because “we’re competing with ourselves” said Lee. “We can be the Apple of the headphones space, with or without Beats.”@amitchowdhry or on Google+ at +AmitChowdhry