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Never any electronic products like the Beats By Dre as a maverick. In the mall, on the plane, bars and even casually a U.S. street side of the road, you can see young people rainbow hypertrophy with Beats By Dre headphones. beats by dreTheir name, these headphones bulky, delicate and expensive. Beats By Dre brand was founded five years ago, initially by a record industry giants with an expensive HDMI cable is known niche sound cooperation to establish the joint venture. You might heard a little about the history of the Beats,; own even one bearing the the magic sound logo of Beats headphones. But you do not know is that transactions of this across the recording industry and the consumer electronics industry, the magic sound is how to lose a fortune. This is a typical story about David and Goliath battle - just a little different: David play Mandizhaoya the panic to flee the battlefield in the crowd laughed. This article describes, it is this the worst in the history of the technology industry behind-the-scenes story of the transaction. Popular headphone brand name rapper named, was not originally cheap beats by drein the birth of a club VIP package room Gongchoujiaocuo not figured it out the back seat of the Maybach sports car, not record companies is covered with platinum records on the wall The discussion in the boardroom. In order to make it clear why the red "B" word logo can be wearing to the head of the whole world to millions of young people, the story from a Chinese family in California's favorite son talk about playing with audio equipment. Beats origins of the magic sound of the company, and the magic soundCustom Beats By Dre originated in St. (Noel Lee), the United States. Lee Mi holy man approachable, but also smart enough to have an avatar cartoon characters hairstyle. He suffers from a walking disorder, daily trips are dependent on a Segway two-wheeled electric vehicles. He had a habit of playing with a variety of electronic devices, and after graduating in engineering from the California Polytechnic University, he created a magic sound company specializing in the production of audio components. Like many Silicon Valley start-up companies, Lee Mi San earliest in the garage of their parents founded magic sound the Company: He constantly trying different kinds of copper wire, until you find the type to enhance the sound quality far.Beats By Dre Cheap Subsequently, the same with the Silicon Valley company, he launched a frenzied marketing campaign for their products, and then ask for incredibly high prices to consumers. This is the magic sound of wire company (Monster Cable). In cooperation with Dre magic sound has been trying to let music lovers willing to dig into their pockets for the high quality sound that exists only in the imagination and brochures. "We re-invented the speaker wire," Lee Mi San declared. And his son Kevin, there is a different argument, "It was like no sick people selling drugs." Magic sound and the subsequent expansion to HDMI cable, surge protector market, and even launched five different types of screen cleaners. Over the years, these high-priced non-essential products makes magic sound companies harvest "burn the reputation of the artist", but at the same time cover up this fact: the magic sound does have the ability to create a truly great audio products. In fact, the audio wire and high-end basketball shoes market is very similar: the world may indeed thousands of people really need a top basketball shoes, but the vast majority of ordinary peoplebeats by dre simply can not tell these astronomical basketball shoes in the end there is nothing special place. It does not matter: the strong marketing capabilities and high-end positioning, Lee Mi San establish a small stereo wire Empire. You may be able to be a cable sold for $ 200, but the market space is very limited, and therefore become the next target of the magic sound speaker market. However, the company enter the the speaker field of timing is too late; era has ended in Hi-Fi, TV and sound bar is sufficient to meet the needs of the vast majority of consumers. But headphones worn on the head? This is definitely a huge market opportunity. Lee Mi St. began manufacturing headphones prototype, and let his son travel to Los Angeles to negotiate with many record companies and artists, looking for a partner for surround sound audio format is a proprietary. This audio format ultimately failed to truly market, but these negotiations are worthwhile. "You must find Arthur, Mary J. Blige and U2," Kevin Lee was told. This is the fate of the arrangements. cheap beats by dre"Sometimes, some things happened treasure it like accidentally discovered," Kevin said with a smile. "If he did not use a fundamentally non-existent surround music format negotiations with these singers, he will not encounter boss Jimmy Iovine of Interscope Records (Jimmy Iovine)." And it is Kevin and Iovine's encounter, brewing the best worst idea in the history of the audio industry. Beats was born. Jimmy Iovine is an outstanding record mogul; he had helped plan the works of well-known singer Bruce Springsteen (Bruce Springsteen), and 50 Cent, is now chairman of Interscope Records. Dr.Dre is that Dr.Dre. Whenever Beats convene new product launches, attend Iovine will Dr.Dre partner of: Speed ​​fast Iovine, sharp-tongued, everyone will be talking about the Beats the origin story: Interscope hope Dre endorsement sports shoes advertising, Dre reply said: "Fuck sports shoes to manufacture the speaker it." (Fuck sneakers, let's the make speakers) this story is almost certainly fictional, but still widespread, in part because it is very interesting. But the main reason is that the rhyming words. According to Lee and his son, the story is in fact half-truths. Kevin Lee and Interscope approached to discuss cooperation on surround sound, Iovine and Dre magic sound put forward a bold proposal: "Let us to manufacture electronic products." Visit the magic sound company, Iovine and Dre are obviously very fond of many technologies developed by my father in the audio field, "Kevin recalled, said. Lee Mi St.Custom Beats By Dre Jimmy and he hit it off: "he knows how music was supposed to be what kind of voice, I also know that the music is supposed to be what kind of sound, while others in the world basically do not understand." Deal initially field banquet of love ", Kevin said. Followed, a sound education classes, Lee Mi St. to Iovine and Dre show magic sound audio technology company, such as stirring bass technology and an ear headphones prototypes. This combination of Interscope need to mend on sound market knowledge, Lao Li said: "Dre and Jimmy must understand that today's world is no longer Speaker of the world. They do not understand fully, the Speaker of the time is long past. Them in the studio there are always placed great speakers If it is not a magic sound, they simply will not use headphones instead of speakers. " Magic sound understanding of the rap group's ambition in the audio field, and guide them to a lucrative way: high-end headphones. Bose headphones the quality is good, but the design is too old-fashioned. All other headphones on the market are either rubbish, or is too complex and difficult to understand, the consumer is no way to start. "Let us manufacture headphones," Lee Mi San proposal. Regardless of the initial encounter is how romantic, the Lee Mi SanBeats By Dre Cheap and Iovine doomed never establish geeks like Jobs and Wozniak friendship. From the outset, the cooperation of the two commercial cooperation - Lee Mi St. now understand it, but the magic sound of the company in negotiations with Interscope, but did not show enough strong. Magic sound eager to revitalize the headphone business. In the mid-2000s, Dre and Jimmy are urgently looking for earnings outside the record. The doomed but funding arrangements of this cooperation will be Iovine, had talks with Steve Jobs (Steve Jobs), the operation of a large music empire led - rather than the magic sound of this small congregation wire manufacturers. The magic sound of that, if they are able to take advantage of Dre's extensive network of contacts in the entertainment and sports industries, they will be expected to take this opportunity to break into the mainstream market. Magic sound wishful thinking played well in the road to success, prepare a serious shortage; magic sound almost messed up in the process of cooperation, all business decisions. When Kevin Lee to Los Angeles with Dre negotiations, he has almost nothing in addition to the paper undergraduate diploma, in addition to his father work, he did not experience any other commercial. Kevin Lee alone came to Los Angeles, and has a strong legal, financial and business operations experience the record giant company to negotiate. Such a stark contrast from the outset - both sides trying in the process of signing of the agreement, Interscope apparent in the negotiations to be strong in the magic sound. Magic sound with sound engineering expertise, but also many other companies. Jimmy Iovine and Interscope president of marketing Steve Berman (Steve Burman) proposed a series of financial requirements, but just as a speaker on the market losses of $ 50 million small-scale wire company, the magic sound of the heart There are insufficient spare capacity, "said Kevin Lee. Interscope out revenue-sharing conditions can not even maintain the magic sound of survival. The Interscope Company deliberately misrepresented its low-cost approach to the discussions between the two parties reached an impasse. Iovine and Dre in advance to leave the negotiating table, their last phone with magic voice said, "We do not want to decorum, but we will cooperate with other companies." Wishful thinking of the magic sound vain. Six months later, a phone call from Steve Berman. Previously, Dre team with the better known in the audio field SLS Audio try to expand cooperation, but cooperation was not successful. Berman called me, asked the magic sound is still interest and Dre to launch headphones. The magic sound answer is yes. But six months many things have happened. "Beats by Dre" This brandcheap beats by dre has been the market through the cooperation of Dre and SLS, SLS also come up with a prototype headset lay the future of all the appearance of the product line based: huge ear cap, thick pipeline headdress, appearance cool comparable to F1 racing. But the headset is too great, even Dr.Dre the kind of person that has a huge face with Kevin Lee said - it is too big. "Take it to the head, and then mirror according to a photo. Really ugly." Subsequently, the magic sound test of 40 to 50 prototype headset, bear a huge financial risk. Kevin admits that the father about this partnership "does not like himself so enthusiastic". Kevin without telling Lee Mi St., without permission to use the magic sound of the company millions of dollars in R & D funding. "We announced at the 2008 CES show that cooperation, but when the two sides have not even signed, I had been in the engineering and marketing spending of $ 1.5 million." Kevin gets possessed secretly bet on the future of the company hisCustom Beats By Dre father in the cooperation, "At the time, we do not even know what products to produce, how to price, how much will it cost." On both sides The partnership has not been established, Kevin Lee had secretly developed a set of headphones product lines. In before Dre authorized, the magic sound has begun manufacturing the Beats By Dre headphones. So Kevin Lee began to fall into panic among. "This is not rebellious," Kevin said. "I might even lose the trust of the father I have produced millions of dollars worth of inventory, he will kill me." If he can not reach an agreement with Interscope, young Kevin Lee will face both financial and family destruction. Therefore, he is in any case have entered into a collaboration with Dre. He alone on behalf of the magic sound extremely complicated contract details worked out with Interscope. In addition to a diploma, he did not, while negotiations on the other side is a group specializing in company law full-time lawyers. Obviously, both sides of the deal will not are the winner. Magic sound with Interscope signed a cooperation agreement, to help the Beats Electronics revive and re-marketed the headphones, but they have paid a high price: Jimmy and Dre Beats will retain permanent ownership of all products developed magic sound. Headphones, driver and remote controller - a Beats By Dre metal or plastic, Lee Seong-US and Kevin Lee are to give Jimmy and Dre. Magic sound will be solely responsible for the manufacturing of the product - this is a costly part of the deal - is also very troublesome one. "I'm a little Dr.Dre overawed," Kevin Lee admits. Lee Mi San sat next to him without a word. Dre team cooperation to do what? Did not do anything. After months of research and development, Kevin Lee, the first paragraph of the final product to show Dre. Dre put on headphones and play "In Da Club" song, and then said, "This is what we want headphones." This is all something. Beats By Dre from back to life. Kevin Lee had hoped to invite a group of musicians to help carry out promotional activities to educate the general consumer, to instill in them the concept of high-end headphones - to explain the terms of the sound field at the same time, so that more ordinary people interested in. Imagine Kroes Furtado (Nelly Furtado) to explain to you the hazards and the importance of fidelity sound distortion, or Robin Sigg (Robin Thicke) stressed the significance of the treble on TV. This simply can not happen. Partners The Dr.Dre team these headphones magic sound manufacturing, the tireless publicity, it became a status symbol unmatched. Iovine said Kevin Lee, marketing and market cultivation takes too long. Instead, Beats strategy is confusing the public with a strong campaign: Beats all hearts to become "the most popular products, and the sound is implanted Trojan consumers head we are doing. Beats appear in each branch song MV, "Kevin said. Iovine, Beats the brand penetration to almost every watch music video American mind. This strategy worked. "There are even children ran to Best Buy to purchase the Beats headphones, not because it sounds cool, but the Beats headphones so that they look cool," Kevin admits. Lee and his son is obsessed with sound technology Beats essentially is a fashion company. Take a walk on the sidewalks of any city in the United States, you can see young people with hypertrophy printed with the logo of the "B" word Beats headphones. Beats advertising perhaps done overdone, pricing is a bit high, but these products are not basketball shoes, but complex and sophisticated electronic products. They are a product of the project, and the need to spend millions of dollars in R & D funding, through more than a dozen versions of the prototype development, as well as Iovine Kevin Lee to many rounds of discussions. But if you ask the Beats have cooperation with the magic sound, they will be the role of Kevin Lee and Lee Mi San belittle FedEx or Foxconn level - they are a great reputation partners, but only responsible for the manufacture of products and transportation products. Beats deny the magic sound used in industrial or audio headphone design any contribution: "We own the factory and we control all aspects of the sound performance of the headphones is our expertise, we have the sound characteristics of its own patent-protected character, "Beats the company said. "These are absolutely us." Beats CEO Luke (Luke Wood), Wood said. He insisted that the parties remained friendly relations, but the magic sound only responsible for manufacturing the parts of "outsourcing", as well as select the "material" in accordance with the Beats sound quality. The above statement, the magic sound companies make the rebuttal, or even come up with the internal confidential design documents to prove that the magic sound Beats headphones sound engineering and industrial design involved throughout. With Figure 2: magic sound company internal documents, including the popular Beats headphones in collaboration with Lady Gaga, magic sound involved design Magic sound Beats claim to have all the ownership argument is very angry: "Absolutely not, they even do not have any engineers," said Lee Mi San. Kevin went on to say: "Beats no contribution in the engineering field," a substantial part of the deal is no doubt, sound engineering design of Beats By Dre headphones are the magic sound carried. They tell us to want what products, we do it, and then they approved production, but really manufacture the kind of sound, is us. "said Lee Mi St. Kevin Lee Beats role in the cooperation between the two sides just to approval: the magic sound hardware gave Jimmy and Dre feasible by the two of them to decide whether, in this process, the two sides will bargain, the last before the final product in the shopping malls, as well as the consumer's credit card bill. This mode of operation is very smooth. Until one day - Taiwanese phone giant HTC Beats generate interest. HTC asking price of $ 300 million, requested Beats 51% stake. Kevin had hastily drawn up between the co-operation agreement, Beats effortlessly from the cooperation and put into HTC's embrace. Beats spokesman Beats and magic sound break up allows the company to be more agile, reduce the degree of complexity of the organizational structure, the abandoned Lee and his son behind power more than just rhetoric. In this process, the magic sound also get some money - not so much cash to leave, as it took some compensation - Beats but all results: all the magic sound of the audio aspects of the works, all patents, registered trademarks, design, and most importantly, Beats By Dre name. Iovine and even forced the magic sound of the names of all removed from the headset on the packaging of their own design - and he wants outside in addition to the "Beats By Dre" headphone packaging nothing. No magic sound logo, more sound magic is not mentioned anywhere. After the completion of the acquisition in the HTC magic sound completely exit the Beats, even the magic sound help Beats the development of technology, the company's future can no longer use. Beats abandoned magic sound the same year, the company's sales revenue reached $ 619 million (in contrast to $ 298 million last year) to obtain a 64% share in the "high-end" the headphone market ($ 100 and higher price) . The magic sound yesterday announced rapper (Swizz Beatz) the famous producer Shiwei Zi completed HEREBY GIVEN partnerships. The company's new flagship headphones will be named "Diamond Tears".

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