According to several sources, Jay Z is in preliminary talks with Apple about his Tidal Streaming Service.
That’s a big deal for a lot of reasons, but let’s start with a moment of silence, a pause, so all the haters who crushed this venture when it was launched can have a moment. Do I need to remind you about the many headlines and social media posts that called Tidal a failure from the start?
Here’s the thing: While folks were dreaming up clever memes and emojis, Hova went to work and now could be zeroing in on a deal that could bring in hundreds of millions to the artists he promised would get paid when he launched. Here are a few reasons why this blockbuster acquisition would make total sense.
Tidal has cornered the market on artist exclusives, from Beyonce to Pablo to the exclusive home of Prince’s music. They are winning because some of today’s biggest names are a part of the service. In March, they announced that Tidal had more than 3 million subscribers, then Beyonce dropped her Lemonade flavored bomb on the world and they claimed another 1.2 million subscribers hopped on board. Add the untimely passing of Prince and his exclusive deal with Tidal and all of a sudden, Jay Z’s little venture is gaining major ground in the market.
Apple Always Wins
Apple is one of the world’s most profitable companies. In 2014, they earned close to 40 billion dollars — that’s a lot of money and cash to buy whatever they need to buy. Apple has a long history of gobbling up competitors and startups, and with Apple Music now poised as the 2nd most powerful streaming service, they need a knockout blow. Grabbing Beyonce and Tidal makes total sense. Apple can afford the Queen Bey, so why not lock up the world’s biggest music star?
The Music Subscription Business Is Booming
In the last year alone, Spotify has added more than 7 million new subscribers to cross the 30 million mark, but as we know, today’s leaders can quickly become tomorrow’s followers. Think about AOL, MySpace, Blockbuster and so many others. With the streaming market growing with the likes of Deezer, Rhapsody/Napster and others poised to join the party like Pandora, now is the time to pounce. Imagine if a service like South Korea’s MelOn scooped up Tidal? Or what about YouTube Red. It’s this simple: Apple can’t afford to let Tidal fall into a competitor’s hands.
No matter what happens, this is all good for Jay Z and Tidal. Hov is now an attractive target for many suitors. Sure, he has had issues with Apple in the past and the Cupertino company went out of its way to make things tough for Tidal, but I’m sure for an extra hundred million, everybody will kiss and make up.