Jay-Z launches first ever artist-owned streaming service! Will Rihanna, Beyoncé, and other top artists be leaving Spotify?

350x700px-LL-50c3269a_jay_z_tidal_fp

Jay-Z launches first ever artist-owned streaming service! Will Rihanna, Beyoncé, and other top artists be leaving Spotify?

On Monday afternoon, Jay-Z announced his entrance into the music streaming business; the service is called Tidal. Jay-Z is fully backed by some of today’s hottest artists including Rihanna, Kanye, and of course Beyonce.  All of whom are part owners in Tidal, which makes it the first ever artist-owned streaming service. Rumor has it that some of these artists will distribute exclusively to Tidal eliminating competition with other streaming services including Spotify and Pandora.  Remember when Taylor Swift got mad at Spotify and removed her entire catalog for not getting a big enough paycut? That catalog is already streaming on Tidal in addition to Rihanna’s newest single ‘BBHM’.  What’s even better in eliminating competition is that Tidal’s artist terms are said be more attractive offering twice as much as rivals. While Spotify offers the free 99 option, Tidal offers either a $10 or $20 premium subscription. That’s twice as much as Spotify’s premium! Jay-Z is reiterating that music is something you pay for and this service will provide the fair compensation to artists that is lacking elsewhere.  There is no doubt Jay-Z will be able to reach consumers but there is doubt on whether he will able to reach a wide audience. The exclusivity component is huge but not the be all and end all and the service is pretty pricey.  While artists like Rihanna and Beyonce will distribute exclusively to Tidal, the same music will eventually become available on other platforms. Subscribers will likely be the niche market of crazed fans who are willing to pay up, but most others are not willing to pay the high price of $20 for premium. Jay-Z is a successful businessman; I doubt Tidal will be a flop, but I also doubt that it will the end of Spotify and services alike…Competition will sustain.

Advertisements
  1. Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: