Posted November 12, 2018 08:59:00Apple announced on Tuesday that it has bought Beats 1 and Beats Music, two music streaming services owned by the company, with a $500M funding round, adding to its $1.6 billion purchase of Beats Electronics in 2018.
The deal is a $400M cash infusion for Apple Music and Beats 1.
It also includes $100M in cash from its $700M Series A round, and the $500m Series B round.
Apple has been investing heavily in music streaming for a number of years now, with Apple Music serving as its primary subscription streaming service for iPhone and iPad owners.
The $1 billion acquisition comes in the midst of a massive $3 billion purchase from Facebook in 2017, and it was also a major part of Apple’s efforts to make Apple Music the primary destination for its Apple Music app.
Apple Music is a subscription streaming music service that Apple acquired in 2018 and allows subscribers to stream music from artists like Katy Perry, Frank Ocean, and Pharrell Williams to a variety of devices.
It has also offered Beats 1 as a free music service since its inception in 2014.
Apple announced the $1bn purchase of the Beats Music and the Beats 1 services on Tuesday, giving it the third largest music streaming service in the world.
Beats 1 launched in October of 2017.
Apple said the Beats One acquisition will allow the company to expand its reach, “including new categories like live events and premium music that are exclusive to Apple Music.”
“As we continue to expand the Apple Music service, we are excited to be working with Beats to bring music lovers new experiences,” Apple Music CEO Tim Cook said in a statement.
“We’re excited to see more people join the Apple ecosystem and Apple Music will be a new platform for people to enjoy music together.”
Apple Music has a growing library of over 30 million artists and artists streaming their music for free.
It’s the only streaming service that’s managed to consistently outperform Spotify, which has over 300 million users.
Apple also announced a new product for Apple Watches that lets people instantly record audio with a microphone on their wrist.