Dr. Dre’s Beats Electronics acquires MOG music service | Business

Beats Electronics has acquired online music service MOG, merging the company best known for its high-performance Beats By Dre over-the-ear headphone line with a service offering the free digital streaming of over 16 million songs.

While details of the acquisition have been kept private, both parties see the move as a step towards improving the overall music experience, although it is currently unknown how the company’s products will be used together.

The L.A. Times speculates that Beats, whose Beats Audio technology has been included in mobile devices, automobiles and laptop computers, would use MOG’s technology to build on-demand music services into its products — possibly including devices from the HTC Corp., who in August paid $300 million for an undisclosed stake in Beats.

“Time will tell exactly how we integrate our products and services,” MOG founder and CEO David Hyman told USA Today. “MOG and Beats have a shared vision of providing a premium sound experience to listeners and increasing the emotional connection they have with music so building on the solid foundation we’ve created, the possibilities around future innovation are endless.”

“The addition of MOG’s music service to the Beats portfolio will provide a truly end-to-end music experience,” Hyman also said.

After trying other music services, the Beats team was sold on MOG’s commitment to music fidelity, Today reports.

“They were the first service to offer their entire catalog in the 320-kilobit format. I also think they were the most progressive and the first service to be really committed to multiple access points in the deals they did with LG and Samsung for the TV and BMW for the car (and) they were very quick to push music to the smartphone,” said Mark Wood, Beats President and COO. MOG’s 16-million song library is available for free streaming online and by subscription on mobile devices, LG and Samsung Smart TVs. “They understand that the consumer wants ubiquity. They have an extremely talented management team and engineering staff. So it’s really about the product, the service and the talent at the service we are buying.”

Under proposed terms, MOG will continue providing its service to existing customers but focus on being a technology platform for Beats and HTC products, the Times reports.

“Beats was created as a response to the complete erosion of the music experience,” Wood said. “Our whole reason for starting Beats was to try to bring emotion back into that experience. We believe music services is a vital part of that ecosystem.”

Beats Electronics was founded in 2006 by Dr. Dre and Interscope Records chairman Jimmy Iovine, who currently own minority shares in the company.