A lot has been written about the logic behind Apple’s apparently imminent acquisition of Beats. By most accounts it is not the software, not the hardware, not the brand. The focus instead appears to revolve around the Beats’ founders Jimmy Iovine and Dr. Dre. However, so far nobody seemed to be able to explain why exactly would they be so valuable to Apple. The answer might be pretty straightforward: differentiation through exclusive content.

We all know that iPhone’s et al. profit margins are shrinking. One possible explanation is that improving iOS devices further is getting more expensive and requires more time. In other words, each generation of new features costs more to develop and adds less value compared to its predecessor. Competition, thus, is catching up faster than Apple can out-innovate them. This subsequently drives prices down. Intel has been facing a similar problem for a while—it is increasingly harder and more expensive for the chip titan to develop new generations of processors. It is not unthinkable that iPhone profit margins would keep deteriorating as a result of this tendency. In that case, Apple would need another leverage for growth.

If differentiation through software / hardware is insufficient, exclusive content like music, books and films could be the answer. Both Apple and its archenemy Samsung have already experimented with releasing time-exclusive music albums. Most notably releases by Beyoncé and Jay-Z, both of which seem to have done well for their respective platforms. Content strategy is difficult, though, as you need a steady stream of hits. The technology industry is competitive enough as it is, and developing this competency in house might never bring the intended results. Adding Jimmy Iovine and Dr. Dre could be the fix. Not only would it secure the stream of exclusive content but it would also be hard for Samsung to copy.

Apple’s supposed acquisition of Beats looks puzzling but it might not be rocket-science after all. Apple needs to find a new way to keep margins up and exclusive content could be their best bet. In the hyper-competitive smartphone market differentiation through hardware and software might simply not be enough. To this end, the clout of Jimmy Iovine and Dr. Dre is a force to be reckoned with and Samsung wouldn’t copy it easily. Valuable? Judging by the rivarly between the two tech giants—priceless.