Square, the digital payment platform headed by Twitter's Jack Dorsey, might be purchasing Jay-Z's premium music streaming service, Tidal, if a recent Bloomberg report proves accurate. Dorsey has met with Jay-Z at least twice over the last several months, and though the substance of those conversations weren’t public, a source claims that Dorsey is interested in diversifying Square's holdings by grabbing Tidal.
Jay-Z acquired a majority stake in Tidal for himself back in 2015 for a reported $56 million, but it isn’t known whether that’s in the same neighborhood as a potential Square deal, which is still in the early negotiation stages and may not occur at all. Tidal launched in 2014 as a more artist and audiophile-friendly streaming alternative to Spotify, and it did at one time have some impressive exclusive deals that made it the only place to stream the catalogs of artists like Prince (who released a couple Tidal-exclusive projects to the platform towards the end of his life) and Jay-Z himself. However, most if not all of those originals and exclusives have now made their way back to other streaming services.
When the Jay-Z and Prince catalogs ended up back on Spotify and elsewhere, some industry analysts questioned whether it might be a bad sign for the future of Tidal. The company itself has kept most of its user data to itself since it disclosed a 3 million subscriber count back in 2016. Whatever Tidal's health as a company may be, it might nevertheless make an attractive prospect for Dorsey and Square, as he reportedly has visions of building the company into a much larger corporate brand for a variety of different products and services.
What You Will Learn
- Square's potential acquisition of Tidal could transform the digital payment landscape.
- Jay-Z's strategic business moves and their implications for Tidal's future.
- The role of exclusive content in the competition between streaming platforms.
- The significance of artist-owners and their influence on streaming services.
| Artist | Role | Notable Contributions |
|---|---|---|
| Jay-Z | Co-owner | Majority stake acquisition in 2015 |
| Beyoncé | Artist-owner | Supports Tidal through exclusive releases |
| Prince | Artist-owner | Released Tidal-exclusive projects |
| Alicia Keys | Artist-owner | Contributed to Tidal's artist-friendly image |
In addition to Jay-Z, there are supposedly many other notable artists with stakes in Tidal, including Beyoncé, Win Butler and Regine Chassagne of Arcade Fire, and even Daft Punk. These artists are listed as "artist-owners" on the service's website. However, it isn’t known what their actual roles within the company are now, or whether they might have any input into a potential deal between Tidal and Square.
