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HEAR THAT? BEATS ELECTRONICS OFFICIALLY BUYS MOG

Tom Cheredar
July 2, 2012 7:20 AM
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Streaming music service MOG was officially acquired by audio hardware company
Beats Electronics today, reports USA Today.

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Becoming Secure by Design


MOG is a subscription-based streaming music service that’s similar to Rdio,
Rhapsody, and Spotify. It offers a free ad-supported version of the service, an
ad-free $4.99 per month web subscription, and an ad-free $9.99 per month
web/mobile device subscription. The purchase by Beats comes after months of
rumors that MOG was up for sale, which the music service half-denied.

It was initially thought that MOG sold for around $14 million, but the USA Today
post notes that the final price was significantly higher.

So why did Beats go after MOG instead of one of the other services?

Beats said that MOG was an attractive purchase because it was the first music
service to offer its entire 16-million-song catalog in the 320 kbps format as
well as its ability to scale across multiple platforms and devices. I’m not sure
how big of a deal that actually is, but the unspoken reason for Beats’ purchase
of MOG had to be that the electronics company thinks it’ll help sell more
headphones and such.

“Beats is a company as obsessed with sound quality as we are, and we share a
common goal of creating a more premium sound experience and emotional connection
with music in the digital era,” MOG founder and CEO David Hyman told USA Today.

Founded in 2005, Berkeley, Calif.-based MOG had raised $24.9 million in total
funding from Menlo Ventures, Balderton Capital, and others.

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