Back in January, headphone maker Beats Electronics’ CEO Jimmy Iovine announced that the company was working on a subscription music service.
Reuters is now reporting that Apple CEO Tim Cook met up with Iovine in Los Angeles in late February in order to find out more about Beats’ music service, termed “Project Daisy.” Details about Project Daisy have been sparse, with little information available about the upcoming music streaming venture.
Eddy Cue, Apple’s Senior Vice President of Internet Services, was also present at the meeting. Eddy Cue was responsible for creating Apple’s iTunes Music Store. According to Reuters, Cook was interested in finding out about Iovine’s business model and his rollout plans, though apparently, the meeting was not about creating a specific deal. Reuters cites three sources who are “familiar with the situation.”
“The meeting between Cook and Iovine, who is also chairman of music company Interscope-Geffen-A&M, was ”informational“ and covered a broad range of music-related topics, the sources said.”
Apple has been rumored to be working on a music-streaming service for quite some time now. Im September of last year, The Wall Street Journal revealed that Apple was in negotiations with record labels to create a streaming music subscription service.
Bloomberg followed that up with a similar report in October, also suggesting that Apple was ironing out the details of streaming music service. While the report said that a deal could come by mid-November 2012, nothing concrete has surfaced as of yet.
During his original January announcement, Jimmy Iovine mentioned that he had pitched a streaming music to Steve Jobs after the two met back in 2002. Though Jobs was interested in such a service, Iovine said that Jobs was unhappy with the licensing fees that record companies were charging.
“I don’t know what [Apple media head] Eddy Cue would say — I’m seeing him soon — but I think in the end Steve was feeling it, but the economics …he wanted to pay the labels [for subscriptions], but [the fees were] not going to be acceptable to them,” he said.
Streaming services like Spotify, Rdio, and Pandora have been growing in popularity in recent years, which means an Apple branded music streaming accompaniment to iTunes could potentially be hugely successful.
Both Apple and Beats have declined to comment on a possible deal.