Apple is reportedly in talks with rap mega-star Jay Z to acquire his music streaming company Tidal.
The deal, if it goes through, would be beef up the Apple’s Streaming service Apple Music. By acquiring tidal, Apple would gain access to a portfolio of popular musicians that are friends and associates of Jay Z. However, according to reports from a spokesman of Tidal, the deal has not yet been struck and they have gone as far as denying the talks altogether, so this is all still speculation, but there is no smoke without fire.
Tidal’s business model is wrapped around their quality of music, saying they offer a “richer, lossless” quality of audio. For this high-end audiophile intended service the company charges $19.99, double of what most streaming providers charge. Despite this the company has only 4.2 million paying customers.
So what does this all mean for Apple Music?
Well we know they are struggling against rivals Spotify, the music streaming giant is growing much faster than Apple. They have over 30 million paid users and 100+ million free users, whereas Apple are trailing behind with less than 15 million subscribers. Adding the 4.2 million from Tidal would help but it’s unlikely to close the gap between the two streaming companies.
So what’s the main benefit of Apples acquisition of Tidal, well it’s Jay Z, or more importantly his relationships with other artists such as Kanye west, Beyoncé and many others.
These artists offer exclusive access to all of their latest albums on Tidal. So having these exclusively on Apple Music would be a great selling point for their service. Also Tidal offers its services across multi platforms, where as Apple Music is currently only compatible on their line of products. This is something they need to change to compete with Spotify who offer their service across iOS, Windows, OS X, Android, Windows Phone, Blackberry and Sony’s PS3 and PS4.
Apple is accustomed to buying brands off of big name rappers, with Apple buying Beats over a year ago, which was founded by rapper Dr. Dre.
So, if Jay Z wants to sell Tidal, Apple will definitely sign the deal, the acquisition of Tidal could cause a big threat to Spotify and will help Apple Music rise in the field of music streaming services.
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