Beats By Dre Splits From Monster Cable Products

posted Friday January 13 ,2012 at 09:05AM CST | 2 comments

Beats By Dre Splits From Monster Cable Products

Beats opted not to renew its five-year contract when it expires at the end of 2012.

After striking success over the past few years, Beats By Dre is splitting from Monster Cable Products when its five-year contract expires at the end of 2012.

According to Business Week, Beats, which held a 53 percent stake of the $1 billion annual headphone market in 2011, has decided to terminate its partnership with the electronics brand. While each company says that there is no animosity, the publication reports that there was ill will over financial terms, “with divergent views on which side deserves the most credit for the line’s success and Beats balking at its share of the revenue.”

Monster is planning on putting out eight lines of headphones to compete with Beats. Jimmy Iovine, Interscope Geffen A&M Chairman, isn’t sweating it. “We have very big ambitions for Beats beyond headphones,” he says. “Music has got to succeed on the phone or else the record industry will never thrive.”

RELATED: Former Beats By Dre Executive Launches New Headphones Company

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