Apple in talks to acquire Tidal
Apple Inc. is reportedly in discussions to purchase Jay Z’s streaming service.
According toThe Wall Street Journal, talks between the tech giant and Tidal are “ongoing”.
The WSJ report notes that Tidal representatives denied any acquisition discussions. However, Recodehas confirmed the pair are exploring a deal.
A buy-out would make sense; as paid subscription only services, both Apple Music and Tidal are centred around content exclusives and pay big bucks for original content.
As previously reported in TMN, Apple Music (which celebrated its first birthday yesterday) is funding the making of videos and multi-media documentaries so they get exclusivity on them. Apple financed Eminem’sPhenomenalmusic video, Taylor Swift’sThe 1989 World Tourconcert film, Drake’sHotline Blingand two cuts of The Weeknd’sCan’t Feel My Face.Apple Music also has deals with Keith Richards, Selena Gomez, Black Eyed Peas and, announced last night, new US rapper Dreezy’s debut albumNo Hard Feelings.
When Jay Z acquired Tidal for US$56 million last year, it launched on March 30 with a host of co-owners, including Beyonce, Kanye West, Madonna, Calvin Harris, Usher, Nicki Minaj, Deadmau5, Rihanna and Jack White, among other heavy hitters. It’s since added Lil Wayne, Indochine, Damian Marley and TIP.
Despite a clumsy start including the departure of three CEOs, user complaints of higher costs and a limited catalogue, Tidal now has over four million paying subscribers across 46 countries, including Australia, and even sells concert tickets.Apple Music has 15 million in over 100 countries.
Tidal’sexclusive live streams and events have included albums by Beyonce and Prince,The Life of Pabloby Kanye West – which was streamed 250 million times in its first 10 days – andANTIby Rihanna, which was downloaded 1.4 million times in its first 24 hours.
Tidal also live streamed West’sYeezy Season 3fashion show, which had 23 million viewers, debuted two original video seriesMoney & ViolenceandNo Small Talk, andhad the exclusive on the premiere of music videos including Madonna’sBitch I’m Madonna, Dead Weather’sImpossible Winter, Usher’s Chainsand Calvin Harris’How Deep Is Your Love.
As noted by Recode, Apple is in a far better position for any acquisition talks. It has a larger share of the market, is less expensive for consumers (Tidal charges US$30 for a family subscription versus Apple Music’s US$15) and has more to offer its subscribers.
At any rate, should Apple Music acquire Tidal it will still have to convince its 4 million subscribers to transfer over. It will also have to renegotiate deals with labels.