Apple Inc's (NASDAQ: AAPL) newest high-profile hire isn't sure he has a job title and won't commit to working full-time at its home base, but the iPhone maker is banking on Beats co-founder Jimmy Iovine to steer it through a changing music business.
The recording industry veteran is joining up with Apple as part of its $3-billion U.S. acquisition of music streaming and audio equipment maker Beats. Iovine's "ear" for music and his entertainment industry expertise are valuable qualities for Apple, Senior Vice President of Internet Software and Services Eddy Cue said on Wednesday.
Along with Beats co-founder and rapper Dr Dre, Iovine arrives at Apple as new online music streaming services such as Pandora Media and Spotify are gaining popularity. Streaming services are expected to eventually eclipse music downloads offered by Apple's iTunes store.
The Beats subscription music service had amassed 250,000 users in its first three months of availability, according to Iovine, a relatively modest number compared to Spotify's 10 million paying subscribers.
Iovine, 61, is best known as the founder of Interscope Records, home of artists from Eminem to Lady Gaga. He said there has been a long-running disconnect between Silicon Valley and Hollywood which Beats and Apple would seek to bridge.
"In the entertainment business, everybody is desperately insecure," Iovine said, whereas "the guys in Silicon Valley seemed to be slightly over-confident."
Beats' business selling high-end headphones will report to Apple marketing chief Phil Schiller after the deal closes, while the streaming music service will report to Cue, Iovine said.
Apple shares began trading Thursday up $4.98, or 0.8%, to $628.99 U.S., within a 52-week range of $388.87 U.S. to $629.83 U.S.
