Beats Electronics And Monster Parting Ways

January 13th, 2012 at 2:05 pm

This just goes to show that no partnership can last, especially if it is built for the purpose of making money. Be it for two people or two companies, such partnerships can lead to petty jealousies and egos especially if both have gone through some successes along the way. This might just be becoming true for Beats Electronics and Monster Cable Products, two companies that have come up with one of the most popular headphone line today, the Beats Audio by Monster.

According to a report coming from Businessweek, Beats Electronics has decided not to renew its partnership contract with Monster Cable Products when it expires at the end of the year. It seems quite unfortunate that such a successful partnership should be parting ways just as they are at the peak. But like most successful partnerships, there is always one reason why they break up- money.

Yes, behind all the many reasons being given here and there, it all boils down to money and how it is being shared. When one party feels that profit sharing is not that equally distributed between the two, there is bound to be issues about fair treatment cropping up. If this is not resolved, it may well lead to partners parting ways most of the time. And the same thing might be happening between Beats Electronics and Monster Cable.

Both Monster and Beats have created a 5-year partnership that has brought about the popularity of fashionable and hip headphones. Monster took care of the manufacturing while Beats came up with the technology and design as well as handling the marketing aspect of the business. With their wildly popular Beats by Dr. Dre and other celebrity endorsed headphones, the partnership soon led to a highly successful endeavor that has led them to capture about 53 percent of the $1 billion headphone market last year.

But the wild success has led to discontent over the financial side of the partnership. Word on the street also says that the souring relationship may also be stemming from issues like which company should take more credit for the success. Such issues would surely creep slowly into any partnership and cause damage to the relationship over time. We won’t be exactly sure whether these issues were just a recent or a long standing affair, especially now that both companies are saying that the parting of ways is amicable with one not holding grudges over the other.

But at the end of it all, it just looks like another good and successful business partnership that has gone down the drain. It is not exactly certain whether both companies may be able to sustain the same success that they had together by working separately. And it is not also certain whether both may find success at all. But, no matter how sad and unfortunate, it is how things usually work in this side of the money-making world. Partnerships and companies come and go and money is still king.


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