In Apple's $3 billion takeover of Beats
, $2.5 billion of that went towards the hardware division, while just $500 million was for Beats Music, according to the Wall Street Journal
. Beats Music is a relatively new streaming service, having only launched in January.
The amount Apple paid for it may still be inflated. Yesterday Beats co-founder Jimmy Iovine revealed that Music has somewhere over 250,000 subscribers
, far less than what services like Pandora or Spotify can count. It's widely speculated however that Apple intends to use Beats Music as a springboard for adding new streaming subscription plans to iTunes Radio; currently the only paid option is the ability to remove ads via an iTunes Match subscription. Apple may also be paying a premium for Iovine's skills in acquiring music rights.
Spotify has some 10 million subscribers, and recently raised $250 million on a valuation of $4 billion, or about $400 per subscriber. Applying those same metrics, Beats Music might only be worth $100 million.