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DIVORCE: Beats Electronics and Monster Cable are quitting its partnership
Posted by Arne Hess - on Friday, 13.01.12 - 13:00:43 CET under 01 - General News - Viewed 11089x
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Looks like Beats is somewhat unhappy that it designs iconic headsets but Monster is getting the money because, as Businessweek reports, the partnership between Dr. Dre's Beats Audio and Monster is coming to an end. Monster Cable, which has manufactured the headphones under an exclusive license agreement since their debut in 2009, got informed by Beats that Beats has opted not to renew its five-year contract with Monster when it ends late this year. Though both companies publicly say the separation is amicable, the relationship is said to turn sour over financial terms, with divergent views on which side deserves the most credit for the line's success, according to people close to sources.

But it wouldn't make me wonder if there's another good reason why the partnership also broke. Beats' sound technology is already in computers from Hewlett-Packard, it was used in Palm's TouchPad and now also in smartphones from HTC, which took a 51 percent stake in Beats last year. On the other hand, Monster is now partnering with Nokia and manufacturing their "Nokia Purity HD Stereo Headset by Monster" and "Nokia Purity Stereo Headset by Monster". And since Nokia might be HTC's strongest competitor in the Windows Phone field, it's definitely a good reasons for HTC to tell Beats to quit the further partnership with Monster.

In any case, while Monster can easily continue to manufacture its own-branded gear (as well as selling it under the Nokia brand), Beats is now in need of a new partner. Maybe HTC can help them here since the Taiwanese smartphone giant has some reasonable experience in manufacturing hardware. But Beats as some ambitions anyway: "We have very big ambitions for Beats beyond headphones", said Jimmy Iovine, co-founder and -owner of Beats Electronics and continues that "Music has got to succeed on the phone or else the record industry will never thrive".

Cheers ~ Arne

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