Apple Is Buying Tidal Music Streaming Service.
Apple is in "exploratory talks" to obtain Tidal, the streaming music service track by Jay-Z, the Wall Street Journal news. Recode has established that the companies are discussing a deal.
The point that Tidal, which has been shopping itself for some time, is now talking to a purchaser with very deep pockets — and a streaming service — is not a surprise.
Late-night on Thursday, The Wall Street Journal named sources who said Apple was in discussions with Tidal to obtain the streaming-music provider. While the sources believed the deal could break down at any time, it makes perfect sense for Apple, after estimating Tidal and who owns it, to take the plunge and attain one of its chief rivals in the streaming business.
After all, the music service retained by Jay-Z has been overwhelmed by issues in its first year. After a tragically tone-deaf launch, the business side of the service has been plagued by executive changes. Then there are the lawsuits – both on the business side and even from some of its users.
To be honest, Tidal isn’t the achieve its principal owner Jay-Z had thought it would be. The streaming service is extreme behind market leaders Spotify and Apple Music, and even with a slight bump in subscribers after Kanye West decided to firstly make his latest album presented totally on Tidal, it’s been overshadowed by its larger rivals.
Jay is observing to relieve of Tidal and Apple is watching their impressive talent roster in a series of early considerations according to the Wall Street Journal, which notes that the talks are ongoing and may not lead to anything. Jay reportedly made a previously attempt to sell the service to Napster, formerly known as Rhapsody, but that agreement didn’t go anywhere either.
Tidal’s procurement would make for a less competitive music streaming field, and Apple Music could gain its four million users to add to their own 15 million subscribers, who pay $9.99 a month to use its services. In contrast, Spotify has 30 million subscribers and around 70 million people who use its free service.
Apple also possibly doesn't have much competition for this deal, so it would be in a strong place. Samsung, the most logical buyer, walked away from its prior talks with Tidal, according to a source close to the deal. Spotify can't give it. Google, which also owns a streaming service, could probably also be interested in similar reasons as Apple. All this is worth something, but not a ton.