Apple Denies Beats Music Shutdown

Issue 21 REP DEALS Beats Apple - P 2014
AP Photo/Apple, Paul Sakuma

Issue 21 REP DEALS Beats Apple - P 2014

A report claims the tech giant is shuttering the Jimmy Iovine- and Dr. Dre-led subscription service

Apple is denying a report from TechCrunch claiming that it plans to discontinue the Beats Music streaming service that it acquired in May as part of its $3 billion purchase of Beats Electronics.

The post, published earlier today, quotes multiple sources claiming that the Cupertino, Calif.-based tech giant has moved engineers off of the Beats Music app and into new roles on other Apple projects, including iTunes. 

A rep for Apple tells The Hollywood Reporter and Billboard that the report is "not true." A Beats representative also denied the story.

Apple has been relatively silent about how it would integrate Beats into its current iTunes offerings, and the service was largely ignored when executives took the stage at a special event less than two weeks ago to reveal the new iPhone 6. Apple's Eddy Cue gave a wink to the company during his presentation on Apple Pay and CEO Tim Cook gave the streaming service a shout-out when announcing the launch of the new U2 album. The Beats app, which allows people to access curated streaming music playlists, is also noticeably absent from the new iPhones. 

However, a source with knowledge of the situation says that the company "is fully committed to offering a subscription service, though changes to any existing products are always a possibility."

The shuttering of Beats Music would leave Beats co-founders and newly minted Apple executives Jimmy Iovine and Dr. Dre to focus on other initiatives for the tech firm and would support reports that surfaced at the time of the acquisition that Apple paid a premium to acqui-hire the music moguls.