On Monday afternoon, celebs such as Jay-Z, Kanye West, Madonna, Rhianna, Chris Martin and Nikki Minaj (just to name a few) gathered to announce the re-launch of TIDAL, a music streaming service. TIDAL is a high-definition streaming service that will compete with services such as Pandora and Spotify. Jay-Z is the majority owner while the other artists on stage all have small stakes in the company as well.
Unlike other music streaming services, there is no free tier for subscription. Therefore, we can assume there will be no disruptive ads on the platform as we see with other free streaming memberships, however this has not yet been confirmed. For TIDAL, users will have to pay $10/month or $20/month depending on the quality of music they prefer. Additionally, the player is available as both a website and an app (no desktop player) and can stream to a number of speaker systems. An added bonus – Tidal will offer the ability to save songs for listening without an Internet connection.
Another edge that TIDAL may have is the releasing of exclusive content and invitation to special events for paying members.
Why It’s Hot
With the domination of streaming services such as Pandora and Spotify, we haven’t seen a potential game changer enter the market in a long time. The switch of focus from price to quality enables the brand to position itself as premium and perhaps not truly in competition with any other services. Next, having people with star power backing this service is major. For example, celebs that have had constant battles with streaming services may actually volunteer to have their music on Tidal. If this is true, we could see both artists that are stakeholders in Tidal or support its mission, releasing exclusive content (perhaps even entire albums) on the service. If Tidal can convince artists to do this, they could gain a huge advantage over competitors.
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