Beats plans to spin out Daisy music streaming service

Apple’s reportedly in talks with Beats Electronics – the high-priced -headphone maker founded by hip-hop producer Dr Dre and music mogul Jimmy Iovine – about its planned Daisy music streaming service.

Daisy first came to light late last year, after Beat acquired streaming music service MOG for around $14 million. The subscription service is believed to involve a set of curated playlists created by musicians and DJs, and headed by Nine Inch Nails frontman Trent Reznor as chief creative officer.

“After years of fighting and uncertainty, it’s now undeniable all the world’s music will be available on every device by just clicking play.  However, the current streaming experiences aren’t good enough,” said Beats CEO Ian Rogers on his appointment in January.

“They aren’t good enough for fans, who need it to be easier to find music they love.  And they aren’t good enough for artists, who want to grow their audiences and make money. This is the opportunity I’ve been working toward my entire career.”

Beats has now confirmed that it’s raised $60 million in funding to bring the service to market as a separate business later this year. The cash comes courtesy of Access Industries, an investment group headed by Len Blavatnik, who two years ago bought Warner Music Group for $3.3 billion.

And, according to Reuters, it’s also in talks with Apple about a potential partnership on the service. Iovine is believed to have met with Apple’s head of internet products, Eddy Cue, to discuss Daisy’s business model and rollout plans.

An Apple/Beats joint venture seems pretty unlikely. Apple is widely believed to be working on its own music streaming service, throwing it into competition with the likes of Spotify or Pandora. It’s been a long time coming – but that’s probably because of the difficulties involved in negotiating licensing rights, rather than because Apple needs outside help.