Don’t count Jay Z out of the streaming business quite yet. Since buying the streaming service two years ago, the company has publicly encountered small stumbles, mounting losses and vague plans. However things are turning around.
Monday (Jan 23) it was announced that Sprint will buy a one-third stake in the service for an undisclosed amount (rumored to be in the neighborhood of $200 million). The arrangement injects some needed investment in Tidal and allows it, at least for now, to remain an underdog in a streaming market that has become dominated by giants.
“Tidal has struggled to make a dent in the streaming market and has shallower pockets than Spotify, Apple or Amazon,” said Mark Mulligan, an analyst at Midia Research, a market research company. “The Sprint deal gives it access to a big customer base, free marketing and a war chest to take on the streaming incumbents.”
As part of the deal, Jay Z and the group of artist owners who helped introduce Tidal, including Beyoncé, Madonna, Kanye West and Rihanna, will continue to run the service, and Marcelo Claure, the chief executive of Sprint, will join Tidal’s board, the companies said.
“Sprint shares our view of revolutionizing the creative industry to allow artists to connect directly with their fans and reach their fullest, shared potential,” Jay Z said 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.”
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