The latest thinking the new academy

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The Latest Cultivating tomorrow’s big thinkers By Glenn Rifkin

The New Academy

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n May, when legendary rapper Dr. Dre and music industry mogul Jimmy Iovine arrived at the University of Southern California, they brought a check for $70 million … and a problem.

The influential pair founded Beats Electronics in 2006, prompted by advances in technology and an opportunity to create a mass market for highend headphones. When the first “Beats by Dre” headphones appeared in 2008 priced at $300, industry watchers were skeptical. Would there be a market for headphones at prices normally reserved for gear aimed at the professional studio technician?

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B r i e f i n g s o n t a l e n t + LEA D E R S H I P

The answer came quickly. Beats by Dre caught fire and grew quickly, capturing 64 percent of the $100-and-up headphone market by 2012. And their little startup, privately held, reportedly has skyrocketed to more than $1 billion in annual sales. Beats by Dre had the cachet of celebrity, worn by LeBron James, Kobe Bryant, Will i. am, Michael Phelps and many others, and the brand has stayed hot. But is it sustainable?

So successful has Beats Electronics become that its founders have confronted a new concern: finding enough talent to grow and expand the business. The Santa Monica, Calif.-based company is not unlike any of its Silicon Valley counterparts: Without the creative talent to mine new territory, the future threatens to become stagnant and bleak. At the intersection of technology, the arts and business, the talent pool can never be deep enough. Dr. Dre is an iconic figure in the rap world whose real name is Andre Young. Iovine, chairman of Universal Music Group‘s Interscope Geffen A&M


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