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In today’s day and age, nearly every music fan has their go-to streaming service, and an increasing number of artists are signing distribution deals that ensure their music is released exclusively on a specific platform for a certain period of time.
For example, artists like Kanye West, Beyonce, and Rihanna debut their music on Jay Z’s Tidal for several weeks before it’s available at other services, while similar deals have been signed by Drake and Taylor Swift with Apple’s (AAPL - Free Report) Apple Music platform.
Industry Tension
The music industry has always been equal parts collaborative and competitive, but now artists are being forced to consider exclusive streaming deals while working with a peer. In his latest studio album Views, Drake purposefully removed a verse that featured Jay Z due to the Tidal and Apple Music rivalry.
Over the weekend, Kanye West delivered another one of his classic Twitter rants about this very topic. Here’s just a taste of how Kanye felt:
I need Tim Cook Jay Z Dez Jimmy Larry me and Drake Scooter on the phone or in a room this week!!!
Interestingly enough, Kanye asserts something that has already been a rumor: it’s inevitable that Apple will buy Tidal. Last month, a Wall Street Journalreport said that Apple was in talks with Jay Z and Tidal to acquire the streaming service in an effort to bolster its Apple Music portfolio (also read: Apple May Be Buying Jay Z's Tidal Music Service).
Tidal’s Presence
Jay Z actually purchased the Swedish parent company that initially launched Tidal back in March of 2015, and since then Tidal has been billed as the first “artist-owned” streaming service in the world. During a promotional debut last year, Jay Z and the “co-owners” of Tidal, including Kanye, Beyonce, Daft Punk, Madonna, Calvin Harris, J. Cole, deadmau5, and several others, appeared on stage to hype the new service.
Since then, Tidal has failed to firmly grab audiences’ attention. Although exclusive releases like Kanye’s The Life of Pablo and Beyonce’s Lemonade garnered a lot of buzz, many fans simply used their free trials to listen to the albums before switching back to another platform later.
While Tidal’s $9.99 per month price is competitive with Apple Music, Alphabet Inc,’s (GOOGL - Free Report) Google Play Music, and Spotify’s Premium offering, its library size and the functionality of its website and mobile application have been criticized.
Tidal has also had several internal struggles. The company has had three different chief executives in less than a year, with one being interim and one appointed by previous management. Tidal is also the subject of several lawsuits concerning artist royalties and exclusivity deals.
A Good Deal?
With everything in mind, it might not make sense for Apple to buy Tidal right now. However, Apple has shown its ability to make cunning moves in the music industry. In 2014, the tech giant scooped up Beats, a luxury headphone maker and music streaming service owned by legendary hip-hop producer Dr. Dre. Over time, Apple turned the existing Beats Radio setup into Apple Music, and it also gained the music industry knowledge of Dr. Dre and music mogul Jimmy Iovine in the deal.
If Apple were to purchase Tidal, it would receive two things. Just like in the Beats deal, Apple would almost certainly benefit from bringing a guy like Jay Z on board. Jay Z is an icon in the industry with an endless wealth of knowledge and connections.
More importantly, Apple would be “buying” all of Tidal’s exclusive artists. With some of the biggest artists in the world already working with Apple Music, adding the likes of Kanye West, Beyonce, Rihanna, Madonna, and many others will catapult the streaming service high above its competitors.
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Should Apple Buy Tidal? Kanye West Thinks So
In today’s day and age, nearly every music fan has their go-to streaming service, and an increasing number of artists are signing distribution deals that ensure their music is released exclusively on a specific platform for a certain period of time.
For example, artists like Kanye West, Beyonce, and Rihanna debut their music on Jay Z’s Tidal for several weeks before it’s available at other services, while similar deals have been signed by Drake and Taylor Swift with Apple’s (AAPL - Free Report) Apple Music platform.
Industry Tension
The music industry has always been equal parts collaborative and competitive, but now artists are being forced to consider exclusive streaming deals while working with a peer. In his latest studio album Views, Drake purposefully removed a verse that featured Jay Z due to the Tidal and Apple Music rivalry.
Over the weekend, Kanye West delivered another one of his classic Twitter rants about this very topic. Here’s just a taste of how Kanye felt:
Interestingly enough, Kanye asserts something that has already been a rumor: it’s inevitable that Apple will buy Tidal. Last month, a Wall Street Journal report said that Apple was in talks with Jay Z and Tidal to acquire the streaming service in an effort to bolster its Apple Music portfolio (also read: Apple May Be Buying Jay Z's Tidal Music Service).
Tidal’s Presence
Jay Z actually purchased the Swedish parent company that initially launched Tidal back in March of 2015, and since then Tidal has been billed as the first “artist-owned” streaming service in the world. During a promotional debut last year, Jay Z and the “co-owners” of Tidal, including Kanye, Beyonce, Daft Punk, Madonna, Calvin Harris, J. Cole, deadmau5, and several others, appeared on stage to hype the new service.
Since then, Tidal has failed to firmly grab audiences’ attention. Although exclusive releases like Kanye’s The Life of Pablo and Beyonce’s Lemonade garnered a lot of buzz, many fans simply used their free trials to listen to the albums before switching back to another platform later.
While Tidal’s $9.99 per month price is competitive with Apple Music, Alphabet Inc,’s (GOOGL - Free Report) Google Play Music, and Spotify’s Premium offering, its library size and the functionality of its website and mobile application have been criticized.
Tidal has also had several internal struggles. The company has had three different chief executives in less than a year, with one being interim and one appointed by previous management. Tidal is also the subject of several lawsuits concerning artist royalties and exclusivity deals.
A Good Deal?
With everything in mind, it might not make sense for Apple to buy Tidal right now. However, Apple has shown its ability to make cunning moves in the music industry. In 2014, the tech giant scooped up Beats, a luxury headphone maker and music streaming service owned by legendary hip-hop producer Dr. Dre. Over time, Apple turned the existing Beats Radio setup into Apple Music, and it also gained the music industry knowledge of Dr. Dre and music mogul Jimmy Iovine in the deal.
If Apple were to purchase Tidal, it would receive two things. Just like in the Beats deal, Apple would almost certainly benefit from bringing a guy like Jay Z on board. Jay Z is an icon in the industry with an endless wealth of knowledge and connections.
More importantly, Apple would be “buying” all of Tidal’s exclusive artists. With some of the biggest artists in the world already working with Apple Music, adding the likes of Kanye West, Beyonce, Rihanna, Madonna, and many others will catapult the streaming service high above its competitors.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>