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Beats Electronics — the guys behind Dr. Dre’s über-popular headphones — have agreed to acquire subscription music service MOG.
Reports of Beats interest in MOG first appeared in March. Beats Electronics, which is majority-owned by HTC, says that the acquisition will help the company create a “truly end-to-end music experience.”
MOG will continue to operate as an independent company and there are no immediate plans to to change the way the service works for users or subscribers. MOG CEO David Hyman will retain his title and report directly to Beats President and COO Luke Wood. The terms of the deal were not disclosed.
Like competitors Spotify and Rdio, MOG offers free and premium user plans. Free users can listen to music on the web — and can earn additional listening credits using Facebook and Twitter — and premium users can listen to music offline and on mobile devices such as Android and iOS.
We’re interested to see how Beats integrates MOG into its greater ecosystem. The company already has partnerships with companies such as HP and Chrysler. Meanwhile, MOG has made inroads toward the in-car entertainment space — most recently with strong integration between its iOS app and BMW’s in-dash systems.
We’ve always liked the MOG product and strategy but the company has struggled to gain as much traction as some of its bigger competitors. Being associated with a strong brand such as Beats could help bring the service to more users and more markets.
Current MOG users and subscribers can read a FAQ about the acquisition on MOG’s website.
What do you think of the purchase? Does this move make sense?
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Seems like an opportunity for HTC to separate themselves from other phone manufacturers through their software. First offering Beats audio components in the phone and now MOG service in the software. Wouldn’t be surprised if HTC starts offering discounted plans or long-term free trials (ie SiriusXM) with HTC phone purchases.
It could also lead to Beats building out their own version of the “ipod” and use Mog as its version of “itunes”. Just speculation.
As a paying subscriber of MOG, I’m not sure what to think of this..BEATS are very over priced headphones IMO and I’m not a huge fan, but if it brings good things to MOG then fine by me..I really hope it doesn’t change MOG at all..
Commenting on the “Free” aspect of Mog (and Rdio), you only get a two to three months of free listening (limited to about 10 hours(?) per month) and after that you can no longer listen to any music unless you invite friends to the service.