14 DAY TRIAL // Looks like even the closest partnerships can be broken up, as proven by Beats Electronics and Monster, whose collaboration will not be renewed.
Beats Electronics and Monster have just finished a five-year-long collaboration, during which they jointly released audio products for the consumer market, and not only.
Apparently, their partnership will not be renewed, as tensions have arisen over who should get more of the credit for the success of their products.
Beats was the one that wanted more of both revenues and credit, according to BusinessWeek.
As one may guess, the companies tried to make their separation pass off as relatively amiable.
Nonetheless, there is little question as to the reality of the situation.
While the two won't take things to court, or clash in any other way, they are not renewing their agreement either.
Beats finished 2011 with control of 53% of the worldwide headphone market, or so analysts say.
Aside from that, Beats also sold many automotive products as well as audio solutions for PCs and notebooks.
Ultimately, 60% of the money Monster made last year came from the Beats product sales. Now that the two have split, Beats will retain rights to the sound technology used in their headphones, along with the design and the brand.
Meanwhile, Monster is preparing to launch products of its own, starting with eight headphone lines in 2012.
“We have very big ambitions for Beats beyond headphones. Music has got to succeed on the phone or else the record industry will never thrive,” says A&M Chairman Jimmy Iovine.
“You never get anywhere if you’re always looking left and right. They’re doing their thing, and we’re doing ours.”
The future of Beats Electronics is not really in any danger. After all, the company already has ongoing contracts with various PC and other electronics companies.If anything, the new competition could drive it, and Monster, to come up with new ideas faster.