Beats Taps AT&T for Music Streaming Service

Beats Electronics is making a jump into the online streaming music market, and is hoping to get AT&T on board as a marketing partner. The company is pushing for a deal where AT&T bundles the music service with its mobile wireless data packages.

Beats looks to AT&T for streaming music service promotionBeats looks to AT&T for streaming music service promotion

Sources said Beats is in talks with AT&T for the marketing deal and is also negotiating with major record labels for music content, according to CNET.

The Daisy music service would put Beats in competition with other streaming music providers such as Spotify, Pandora, Rdio and Rhapsody. Google also recently entered the streaming music market with its Google Music All Access service, and Apple is currently beta testing its iTunes Radio for release this fall.

Striking a deal with AT&T could give Beats the leg up it'll need to make a go of it in the music streaming market thanks to the added visibility the cell service provider can offer. Daisy will also offer something other streaming music services don't: Actual human DJs.

Beats plans to use DJs, artists, and music producers to build playlists, and has already brought Trent Reznor from Nine Inch Nails onboard as Daisy's chief creative officer. Beats also bought the digital music service MOG about a year ago, which means the company doesn't have to start from scratch building up its own streaming setup.

Beats and AT&T aren't talking publicly about the negotiations, and there's still a chance both sides could walk away from the table. If Beats doesn't swing a deal with AT&T, it's a safe bet it'll move on to another cell service provider and try again.