Tidal is in the news again, and that too for several reasons. Firstly, Jay Z the popular music artist has bought this audio streaming website, which is one of the major reasons why the platform is being talked about by many. The other interesting reason includes Tidal’s frequent management change, which has also led to heavy attrition for this company.
Before moving on to the latest management change at Tidal, let’s understand the platform, and how it works. It is also important to consider the reason behind creation of this platform. Tidal, popularly referred to as TidalHifi, is a subscription based music streaming site. It offers lossless audio combined with high definition music videos. It can be referred to as an video cum music streaming website. Basically, you get to hear the original sound quality on this website, which is not the case elsewhere, on other sites. This site has close to 35 Mn tracks and about 85k music videos, which you can choose to hear from. It is said that this site pays the highest royalty to the music artists and song writers, which is also the reason why artists are eager to sell their service and compositions to this platform.
Digital music streaming seems to be one of the finest ways of listening to music. This sites helps you gain access to original music, that too high quality music. This service offers two options for music streaming- Tidal premium which is the lossy quality service, while the other is Tidal Hifi which is lossless CD quality. Both the unique streaming features are offered at a premium price, and as such no free subscription is available with the website. The original author of this streaming site is Aspiro, and the music streaming service is available for multiple languages which includes English, Norwegian, Swedish, Danish, German, Polish etc. Three major music labels owned the distribution rights for this website. It is similar to a social media website developed, but works for the music streaming niche.
Change of Ownership
Recently, popular music artist Jay Z’s company Project Panther Ltd. acquired Aspiro, which owns the music sharing website and there was a change of ownership for Tidal. There was not just a change in the ownership, but also in the way the streaming site model worked. It was earlier an audio and high definition video streaming site owned by a Norwegian company. But, with Jay Z’s acquisition, and collaboration of famous artists like Kanye West, Madonna, Nicki Minaj, Rihanna, and Jack White, the site has been relaunched as the first ever artist-owned audio streaming service. It is the first time ever so many artists have collaborated to introduce music, and make it popular. A mass marketing campaign was launched to introduce the change of ownership.
This is yet another example of original content. The internet is looking for original content that can be sold and bought. Tidal is exactly the marketplace that music lovers have been looking for. Not only do you get good music, but also get access to piracy free high definition version. The change of ownership has also led to few changes in the way the services are conducted, and internal management. The company has closed down the Aspiro offices in Stockholm, leading to termination of the employees working there, including the CEO Andy Chen.
Issues Faced by Tidal
Attrition is a major issue that Tidal is facing at this point in time. At least three major positions of the company have been vacated post the change in the ownership. The very recent one being Ms. Schlogel, who held a senior position at the firm! Despite this attrition, the company has not faced major losses. For one, the site has a huge chunk of video content which is being tracked down by the end users. This original content, and association with major artists lined up on this site, help promote the music service. It works similar to Social Media Platform, as it helps share music that is original and curated by the owners of the music.
As of now, the popular artists associated with the selling buying music service, are reason enough for the firm not seeking any investment. It has enough popularity, and good service intentions which have converted into a defined user base for the music service. After the initial hiccups of a start-up, the firm has now recorded 1 Mn subscribers. The revenue model is completely premium, which is why it is earning well, and needs no investment.
Good service, quality music, and a well defined path for reaching out to more subscribers seem to be working for the music service, even in this odd hour. If you are planning for a similar website development, you need to enter the marketplace with access to original content.