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Beat By Dre: The Exclusive Inside Story of How Monster Lost the World

post #1 of 20
Thread Starter 

Mods, this seemed like the place for this, but if it's really more of a lounge thing, by all means, I'll move it.

 

Here's a snippet of the article from Gizmodo

 

"You might know this; you might own a pair of beats that still has Monster's tiny, subjugated logo printed on them. But what you don't know is how, in inking the deal, Monster screwed itself out of a fortune. It's the classic David vs Goliath story—with one minor edit: David gets his ass kicked and is laughed out of the arena. This is the inside story of one of the all time worst deals in tech."

 

The rest at

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world?utm_source=lifehacker.com&utm_medium=recirculation&utm_campaign=recirculation

 

Interesting peek behind the curtain.

post #2 of 20

"In true Silicon Valley fashion, Lee started out in his family's basement: taste-testing different varieties of copper wire until he found a type that he thought enhanced audio quality. Then, also in Silicon Valley fashion, he marketed the **** out of it and jacked up its price: Monster Cable....  His son, Kevin, describes it differently: "a cure for no disease."" Awesome line. 

 

Kind of a sad tale but I don't feel too bad for Monster.  The article almost made it seem like Monster actually cared about the audio quality having spent millions in r&d.


Edited by Mr.Sneis - 2/7/13 at 3:29pm
post #3 of 20

Good read.  I always wonder how the R&D are divided between Monster and Beat.

post #4 of 20

If you wonder why the "music business" is as cutthroat as it is, it is because of people like Iovine, who place profit above everything else. I suppose this is "just business" but if you look at the collapsing "music business" it is because the industry is not focused on the music.

post #5 of 20

How ironic that a company with a reputation for trying to forcibly licence anyone who makes cables by throwing patents at them gets shafted legally.

post #6 of 20

One word...karma!

post #7 of 20
Quote:
Originally Posted by Currawong View Post

How ironic that a company with a reputation for trying to forcibly licence anyone who makes cables by throwing patents at them gets shafted legally.

 

What was even worse was their thug lawyers going around suing any business that used the word "Monster," even though the business had absolutely nothing to do with what Monster was doing, like Snow Monsters, a ski class for children.

 

As moodyrn says, KARMA!

 

se

post #8 of 20

Interesting read, thanks for sharing.  Merely 2 words come to mind... OVERPRICED CRAP.

post #9 of 20
Thread Starter 

That was my first thought too, upon reading the article.
 

post #10 of 20

Agreed. An interesting read. Thx 4 posting it.

 

Some thoughts...I've negotiated technology-related contracts and even small companies don't sign (execute) the contract until a separate legal rep reviews and approves the contract. Even if they need to get a tempo lawyer. Also, no matter how complex a contract reads, if you really read it, the language that says 1 of the parties owns exclusive rights to some important aspect of the product will stand out. In fact, that sort of statement or paragraph is often in all Capital letters. IDK for sure, but suspect the son had an idea of what he risked, but went there because he had already given away most of his negotiating position. Didn't the article say he had inventory before signing? It's like biz contract 101 that it's critical to find out the interests and situation of the other party. Iovine's people prob did and knew...

 

What really caused me to stop and reflect while reading this thread was gkanai's comment about the music biz's cutthroat nature and that they're "not focused on the music." Crap, it's sad to consider that.

post #11 of 20
Cool article. Monster I've noticed more making diesel headphones too now.
post #12 of 20
i pity monster... jimmy is a bitch
post #13 of 20

Let me get this straight, a company known for ripping people off has now been ripped off themselves. Sounds like karma to me. Getting what they deserve for selling people $150 hdmi cables. Monster can burn in hell!

post #14 of 20
I really enjoyed this article which backs up pretty much everything I ever thought about the brands product lines. Having dealt with them in both the car audio industry and now headphone, I totally agree with many other comments.
post #15 of 20

"Dr.Dre is Dr.Dre" My favorite line.

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