Beats and Monster going their separate ways leaving HTC in limbo

Beats and Monster going their separate ways leaving HTC in limbo
It has been a few years since the marriage of Beats and Monster birthed the cash cow known as Beats Headphones. With the end of their 5-year deal on the horizon, it looks like the honeymoon is officially over.

The two powerhouses have managed to capture 53% of the $1 billion a year headphone market last year and, according to Businessweek, each want a bigger piece of the pie. The dispute was mainly centered on who should receive more credit for the success of line – Monster for manufacturing and partial design or Beats Audio for the majority of the design and marketing. And by marketing they mean the seemingly endless celebrity endorsements thanks to Dr. Dre and, Interscope Geffen A&M Chairman, Jimmy lovine's contacts in the industry.

Ultimately this differing view of credit and, more importantly, amount of profit share, has lead the two companies to decide not to renew their contract with one another when it ends later this year.

While both companies will now compete against each other in the headphone space, one of the more interesting casualties of this spat is HTC. Last year HTC purchased a 51% stake in Beats to the tune of $300 million. Obviously the technology is a part of the HTC Rezound and HTC was rumored to be implementing Beats Audio in its future portfolio of Windows Phones.

It is not clear at this time to what extent HTC will be able to continue to use the logo, audio profiles, or package headsets such as the iBeats with its future phones. We would guess that HTC would, in fact, be able to use the majority of the Beats branding and audio signatures, but have to bundle headsets that were not manufactured by Monster, but we will have to wait for official word on how this will affect HTC.

source: Businessweek via GSMArena

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21. Tux4g63

Posts: 121; Member since: Oct 21, 2011

I wish the people who really did hardware audio for computer and industrial platforms, Creative, would find a way to get onboard with producing a technology that could be incorporated into phones. I remember before Creative came along PC audio was eh, but some of their products made music listenable on a PC and games pretty flippin sweet to play with the volume cranked up. I have to think they would be able to engineer something that would add a true hardware solution to audio on phones that would be noticeable and might make MP3 players and ipods obsolete.

16. chunk1x

Posts: 248; Member since: Jun 25, 2011

Phone Arena is 3 days too late for this news.

22. quakan

Posts: 1419; Member since: Mar 02, 2011

thats usually how it goes

14. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

Lol, lets hope that Beats has control of the manufacturing tech so that they can hand off the building of these headphones to someone who doesn't price themselves out of a sale. I would never buy headphones for $300. That's just stupid as hell, headphones which can break much easier than the device you are using it on. I'll stick with my cheap headphones which can be replaced easily should they break. Music is supposed to be listened to out loud, not cramped in some damn headset. Sorry but I like to hear5.1 and 7.1 sound blasting out of positional speakers and not virtual speakers.

13. G2Noobin

Posts: 81; Member since: Dec 17, 2011

Beats wil do fine.... monster, not so much if they do not restructure.

9. theguero

Posts: 7; Member since: Jan 24, 2011

This doesn't really sound like much of a dilemma to me... Just add Beats to the list right next to HTC and Pantech of brands that PCD already manufactures. I know for a fact they could do a better job then Monster did. I owned the $400 StudioPro's for 7 days a few months ago. What a joke! I loved the fact Monster publishes NO specs on the Beats products. How hard is it to write "SUCK" on the package?

7. codymws

Posts: 237; Member since: Jun 17, 2010

Monster is one of the best companies at ripping people off... just look at their HDMI cables and Beats headphones...

12. G2Noobin

Posts: 81; Member since: Dec 17, 2011

super agree! they gotta get off their high horse.

6. alpinejason

Posts: 262; Member since: Sep 06, 2011

you will really think they are overpriced garbage once you listen to the 300.00 headphones that should be priced at 100.00 at best with the artificial bass boomy and distorted and treble that sounds like someone crinkling two coke cans together.hell the 50.00 koss porta pro sound better than the 300.00 beats and they are 50.00

17. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Yep, especially if you power the PortaPro's with a PA2V2 Headphone amp, you get BASS! and the combo will wipe the floor with Beats, it did with mine....

4. snowgator

Posts: 3630; Member since: Jan 19, 2011

I was looking forward to a Zune/Beats high end Apollo WP handset. Thought that might be a great hit, if it was up to some serious (32G, 64G) storage....

3. bongky

Posts: 12; Member since: Jul 28, 2011

Indeed~! Beats produces some of the worst headphones I've ever tried. For that price, I would rather go for Bowers & Wilkins, Denon or Grado.

5. snowgator

Posts: 3630; Member since: Jan 19, 2011

I never tried a Beats audio offering. So, I guess I am not missing anything? Maybe this would be addition by subtraction, and Beats gets a better supplier for the physical headphones?

8. KingKurogiii

Posts: 5713; Member since: Oct 23, 2011

i use a pair of Skullcandy FMJs and they're pretty great. they usually cost like $80 but i got em for $18 from Skullcandy's site for sending back 2 pairs of broken Ink'd headphones i had lying around and used the credit from those and an online coupon code for the serious discount and i have a lifetime warranty on them. my HP Pavilion dv7t Quad-Edition however has Beats Audio built in and i don't know how much it has to do with it but this thing has pretty great sound and bass.

10. G2Noobin

Posts: 81; Member since: Dec 17, 2011

So how is they have life time warranty??? sounds suuuuper interesting!!

15. KingKurogiii

Posts: 5713; Member since: Oct 23, 2011

i can send them back when they get broken anytime and they send me a brand new pair with the packaging, a new carrying case and everything. i can even get a different color if i want but i'm pretty fond of the bright green color. o:

18. ardent1

Posts: 2000; Member since: Apr 16, 2011

I am Sennheiser guy -- I've tried Bose, I've tried the V-Moda brand that Costco carries, I've tried Sony, etc. It's something about the Sennheiser that made them the best -- probably because they fit so well and I can wear them for hours.

19. -RVM-

Posts: 331; Member since: Oct 19, 2011

Well, Sennheiser are much better in sound quality too.

20. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Same here, I even own the HD800's, I've been loving the MM100 Bluetooth headphones with my RAZR lately... I have the beats (studios) and they are horrid compared to ANY of my Sennheiser cans, even the Koss ones beat the beats.

1. sgogeta4

Posts: 394; Member since: Feb 02, 2011

Beats' marketing was definitely effective since Monster continually provides overpriced garbage. Sucks to be HTC though. Then again, it's their own fault for getting suckered into their marketing BS.

2. KingKurogiii

Posts: 5713; Member since: Oct 23, 2011

i agree the mad marketing was the cause of Beats by Dre's success. hopefully there'll still be a Beats powered WP to add to my choices in the future. o:

11. G2Noobin

Posts: 81; Member since: Dec 17, 2011

Definitely the marketing of beats that sold em.... Monster will fade into the distance... it was a great deal for both companies...elevated monster to mainstream.....and beats got the opportunity to bring design to functionality... Imagine something like seinheiser beats or anything...either is gonna will also sell if they bring substance....Monster cables are WAY over priced....and so if they take that strategy and dont restructure.... gone with the wind.

23. lsutigers

Posts: 832; Member since: Mar 08, 2009

While Beats has marketed their headphones very well and successfully captured a huge chunk of the market, their headphones are not as bad as some people make them out to be. Yes, the hype is mostly marketing but I tried the Beats Mixr's, designed by David Guetta, and they are awesome. Much clearer mids and highs and the bass is toned done quite a bit giving it a much more balanced and natural sound profile.

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