A telecommunication company, Sprint has offered to buy online streaming platform, Tidal from its owner, Shawn Carter, well known as Jay Z.
After two years of running the platform, the American rapper has consented to letting go 33% [which is about one-third] of the company’s shares to Sprint for the sum of $200 Million.
According to an earlier report by Forbes, part of the deal states that Tidal will become available to Sprint’s 45 million customers and the telecom giant’s CEO Marcelo Claure will join Tidal’s board of directors as well, to see that their newly-set goals are achieved.
“Jay saw not only a business need, but a cultural one, and put his heart and grit into building Tidal into a world-class music streaming platform that is unrivaled in quality and content,” said Claure in a statement.
“Marcelo understood our goal right away and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience, ” Jay Z added.
A spokesman for Sprint confirmed that the transaction has already been sealed and that Jay Z and his fellow artist-owners would retain equity in the streaming service, but will have nothing to do with the prices of the product.
Tidal was Launched in October 2014 by a Norwegian/Swedish public company, Aspiro. The platform was later acquired by Project Panther Ltd., a company owned by Shawn Carter and and was co-managed by him and some other artistes.
The subscription-based music streaming service combines lossless audio and high-definition music videos with curated editorial. So far, the platform has over 25 million tracks and 85,000 music videos online and claims to pay the highest percentage of royalties to music artists and songwriters within the music streaming market.
The platform offers two digital music streaming services: Premium (lossy quality) and Tidal HiFi (lossless CD quality).
Well, this move by Jay Z seems like the best business decision he took, as Tidal was already heading south and Jay could not save it.
Initially, Tidal was making waves on news headlines because Jay-Z and a few other high-profile artists own shares, which is not a sustainable business strategy.
After a while, the platform started failing as complaints increased. An expert wrote on reasons Tidal was likely to be doomed, highlighting these valid points stated below.
1. Tidal isn’t accomplishing what it set out to do
2. Tidal’s business model might be unsustainable
3. The streaming platform has a history of technical troubles.
4. Its high turnover is an extremely bad sign for the health of any company.
5. Other competitions were over shadowing the platform.
Tidal-signed artists were already moving out in search of some higher streaming and sales numbers rival services, even when they’ve sworn they wouldn’t.
The good news is that all that will change now as Sprint promises to revive Tidal and make it the premium on-line streaming service that it was initially known for. Fingers crossed, we can’t wait to see the new look of the platform.