Beats Music LLC, the subscription streaming service from rapper Dr. Dre and record producer Jimmy Iovine, raised a second round of funding from existing investors, said three people with knowledge of the deal.
Beats Music, based in Santa Monica, California, raised $60 million to $100 million in equity financing, said the people, who requested anonymity because the round wasn't public. Len Blavatink, Marc Rowan, James Packer and entities affiliated with Lee M. Bass first provided $60 million a year ago.
The company is raising money as Beats Music seeks to challenge market leader Spotify Ltd. for exclusive music rights and to build new features. Beats Music began service in January with plans marketed through AT&T Inc. and TV commercials that included a Super Bowl spot with Ellen DeGeneres.
Matt Benson, a spokesman for Beats Music at Sard Verbinnen & Co., declined to comment. Iovine and Dr. Dre, whose given name is Andre Young, previously founded the separately run headphone maker Beats Electronics LLC.
Beats Music offers a $15 a month family plan exclusively to AT&T Inc. customers that comes with a 90-day free trial. Individual plans are also available for $9.99 a month.
Last week, closely held Beats Music agreed to acquire Topspin Media, adding sales and marketing technology for musicians. Financial terms weren't provided.
This article originally published at Bloomberg here
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