Apple in Talks to Acquire Jay Z's Streaming Music Service Tidal

[Jakexb]

Stop trying to make Apple Music happen. It isn't going to happen.

How about, instead of acquiring the competition for insane amounts of cash, they actually WORK on the user interface and other issues that make Spotify the #1 streaming service? How's that for an idea? Acquiring a user base isn't going to make your abysmal product any better. This doesn't make sense. Why is Apple not making sense?

Actually it seems like it's happening pretty well. In 1 year, Apple Music has almost half the paying customers that Spotify does.

Spotify isn't #1 because they have a different interface, they're #1 because they've been around for 10 years. How long will they be able to burn investor cash without making a profit? They've lost money every year they've been in operation.

 

[Bawstun]

Apple Music's subscribers are the diehard Apple fans, nothing more. Those who like a better user interface, music selection and higher quality algorithms choose Spotify. Don't they have over double (almost triple) the users Apple does? You don't see Spotify trying to purchase Tidal. Apple Music is scared of facing stagnant growth and losing paying subscribers. Cause they should be, it's a much more confusing and inferior product. That will matter in the long run...

 

[Mr Fide]

I'd like lossless for sure. Also, Tidal's subscriber base is surprisingly large.

 

[ClockWork72]

Is it possible that the infrastructure is what they are after?
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1. Are they for sale?
2. Would there be monopoly concerns with absorbing such big hitters?

[doublepost=1467353370][/doublepost]Buying one wouldn't be a monopoly as long as another competitor of equal size or various smaller competitors equating to a equal size continue to exist.
[doublepost=1467353412][/doublepost]

Apple is in talks to acquire rapper Jay Z's streaming music service Tidal, reports The Wall Street Journal, citing "people familiar with the matter." The talks are said to be exploratory and "may not result in a deal," but Apple is considering the purchase to bolster its Apple Music service.

A Tidal spokesman told The Wall Street Journal that Tidal executives had not held talks with Apple, and the terms of the deal are unknown.

Tidal, which launched in 2014 and was acquired by Jay Z in January of 2015 before a March 2015 re-launch, is a subscription-based music service that advertises high-quality lossless audio and high-definition music videos. Tidal offers two tiers of service, a standard premium option for $9.99 per month and HiFi for $19.99 per month. Tidal has 4.2 million paying subscribers, and as of March, 45 percent of those subscribers paid extra for the hi-fidelity tier.

Positioned as one of Apple Music's major competitors, Tidal has clashed with Apple in the past. In February, Apple was in talks to exclusively debut Kanye West's album "The Life of Pablo," but West pulled out of talks and opted to debut his album on Tidal.

Tidal's strong connection to artists like Kanye West, Beyonce, and Madonna is one of the reasons Apple is mulling an acquisition. Apple has made a major push into both exclusive and original content with Apple Music, luring artists like Taylor Swift, the Weeknd, Eminem, and more into offering up Apple Music exclusives.

Today is the one-year anniversary of Apple Music, which first debuted in 110 countries on June 30, 2015. As of June 2016, Apple Music has more than 15 million paying subscribers.

Article Link: Apple in Talks to Acquire Jay Z's Streaming Music Service Tidal

 

[Tech198]

Apple can't make Apple music better so they take the easy way ?

I don't care about the subscriber base, but what about content ? Having a big subscriber base either means its great service, or everyone just likes crap music.

lossless would be advantage. At least they have a web player.

 

[ClockWork72]

Sweet!!! I hope this would mean higher quality streaming, the only reason I ever considered trying Tidal.

 

[Zirel]

Um...

Jim Dalrymple says:

Tell Jim Darlymple he's not as important as he thinks he is.

 

[Loge]

You don't see Spotify trying to purchase Tidal.

http://nypost.com/2016/02/25/samsung-restarting-tidal-acquisition-talks/

From the article:

Google and Spotify have also been eyeing Tidal, sources said. Both believe Tidal, although struggling, can bolster their own digital music services.

Talks the companies are having with Tidal now appear to be aimed at smaller partnerships, sources said.

Spotify has discussed creating an initiative that could produce a Tidal “powered by Spotify” partnership rather than an acquisition.

 

[Otaviano]

Apple Music's subscribers are the diehard Apple fans, nothing more. Those who like a better user interface, music selection and higher quality algorithms choose Spotify. Don't they have over double (almost triple) the users Apple does? You don't see Spotify trying to purchase Tidal. Apple Music is scared of facing stagnant growth and losing paying subscribers. Cause they should be, it's a much more confusing and inferior product. That will matter in the long run...

Spotify can't afford it.

 

[John Mcgregor]

Apple Music's subscribers are the diehard Apple fans, nothing more. Those who like a better user interface, music selection and higher quality algorithms choose Spotify. Don't they have over double (almost triple) the users Apple does? You don't see Spotify trying to purchase Tidal. Apple Music is scared of facing stagnant growth and losing paying subscribers. Cause they should be, it's a much more confusing and inferior product. That will matter in the long run...

First of all Spotify interface is about as crappy as AM. Second Apple can buy whatever they want if it is useful for them.

All I read in this thread is ******** arguments and conspiracy theories.

 

[thekeyring]

What's the point of acquiring one more irrelevant company? They are the Beats headphones of streaming.

The exclusive deals.

 

[Designx]

Backed up does not mean driven by. RAPPERS rule the music world these days. I'm not against it or in favor of it. I'm just stating the facts.
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Do they offer any "exclusive" rock, jazz or classical content there?

They did commercially in the 2000's but hip hop and rap are all but dead now and what's left has transitioned into dance incarnations. The kids listen to EDM these days. Rock will resurge before rap does.

 

[MH01]

Apple stop being douches....your just being used as an endless money bag for the Beats lads to establish a music empire and make a fortune for all their mates . Ever stop and think that's it's all just one music genre .....

 

[wikiverse]

The point is to:
(a) acquire an immediate increase of 4.2M paying subscribers
(b) decrease the competitive landscape
(c) strengthen ties with recording artists.

Everyone is overlooking the biggest problem here: Tidal pays more money to artists and labels.

Those contracts will be grandfathered into any sale of Tidal, which means Apple now has a 2 tier royalty system.

Apple will have to pay more money to those artists without increasing their existing monthly fee (and existing Tidal users will be paying the reduced Apple Music fee), and other artists on Apple Music (including exclusives) will start demanding the higher rate as well.

The whole reason those artists were exclusive to Tidal in the first place doesn't disappear simply because the money now comes from Apple. Any attempt by Apple to reduce those rates will likely see the artists pull their exclusivity, and possibly even their entire catalogue from the Apple Music service.

 

[saschke]

No wonder Spotify is screaming and kicking today.

… streaming and kicking

---
As has been said, this is clearly a power play for 4.2mil customers, exclusivity, industry relations and possibly lossless streaming innovation.

 

[Benjamin Frost]

Yeah, you're officially old and are completely irrelevant to society. You may sway in your rocking chair in peace, now.

Rappers are completely irrelevant to me.

 

[John Mcgregor]

Rappers are completely irrelevant.

Fixed it for you.

 

[rctlr]

I dont think Apple kicked this off, I think they would rather people come over to Apple Music naturally - and let Tidal rot.

 

[ReneR]

am I then only one not interested in music streaming **** and instead in professional IT solutions? If I want to listen to awesome music I buy it, can can listen to it in the plane, beach, forrest, etc.

 

[asfdasdf]

Buying crap here and there. They should have bought Spotify for God's sake. Best service, and eliminate competition, double impact. They have a lot to learn from Facebook, use that huge amount of debt transfomed cash for something who serves shareholders, buybacks do nothing at all, just burn money. 140bn shares buyback program= Spotify+Netflix+Tesla+Uber. We're talking about a 200USD AAPL at least there. We're far far behind 2012 AAPL price, unitary price far below 700 USD pre split AND lower number of shares, so we're like 17-20% below 2012 non inflation adjusted. If the market is expensive, pay with shares while they keep climbing buying one by one.

 

[simonmet]

Can't believe I've quoted so many messages but I'm really interested in this development, being both an Apple user and Tidal subscriber.

Oh no! .... competition is healthy ... I'm about to switch to tidal for their user experience.

Tidal is fantastic and I have nothing but praise for the service. I was attracted by lossless quality streaming but wouldn't have stayed if everything else was ****. Try a free month of Hi-Fi service and see what you think. I've not tried Apple music but considering what I've read I can't imagine it being superior to Tidal apart from its larger catalogue. But I'll take higher quality over a bigger range any day and Tidal has plenty.

I wonder if it has to do with their lossless streaming, which is the only reason to use Tidal at this point.

There's no reason Apple can't implement lossless album sales and streaming themselves as many people have been wanting for years, but they've simply chosen not to presumable for commercial reasons. Most people probably aren't even aware they're not getting full CD quality and/or don't care. I'd say Apple's interest has more to do with improving contacts and relations in the music industry while it follows their history of acquiring smaller valuable companies and IP than the bigger or main competitors.

They better provide lossless streaming if they buy TIDAL because no other streaming service in the US offers it.

Totally. I'd end my subscription immediately and won't migrate to Apple Music if it doesn't offer lossless.

Good. Put them out of their misery.

What misery? Tidal is doing fine. According to my calculation, with 4.2 million subscribers, 45% of whom are subscribed to the premium Hi-Fi tier, they have monthly revenue of approximately US$60.9 million or over $730 million per year. I bet also they have pretty decent retention because I know Tidal has a lot of respect among audiophiles.

I hope so. FLAC audio on lightning headphones must sound nice.

It depends on the headphones and/or DAC/amp used. For instance, there's no reason lightning Apple earbuds would sound any better than the headphone jack if they use the same DAC and circuitry from the phone. It would simply be moving the conversion and circuitry outside the phone to free up space used by the 3.5 mm plug. Lightning is just the digital transport. Where lightning headphones have the potential to be better is if they use better and higher power DAC/Amp circuitry than what's in the iPhone (which isn't hard) and they can also tune the DAC/amp and/or implement DSP to suit the particular headphones.

I hope this doesn't happen. I like tidal

I like Tidal too. If Apple do purchase it, I hope the service isn't shut down.

Why would Apple need to buy Tidal to get lossless music?

As mentioned earlier, I don't think they do and Apple's interest isn't about that.

Or just wait another few months for them to go belly up? Who is subscribed to Tidal

I am and there's no indication they're in any sort of trouble or danger of going belly up. Apple aren't interested in companies that will collapse on their own. Why would they be?

 

[grad]

As much as I hate Apple, I hate Google and Microsoft even more. This might be a good thing, even if that kills any 3rd party hardware/software integration (I do have tons of Apple products, but the most interesting stuff can't be accomplished with Apple TVs, iPads or iMacs).

I would never subscribe to Jay Z's service as it is anyway. But if the acquisition means that Apple will go lossless and will use MQA I will happily continue my Apple Music subscription (kept doing this for months for some reason, despite having the much better Spotify as well).

Of course, all this would be unimportant if Qobuz got their act together and listened to their customers more.

 

[masterhiggins]

Excellent. Now I can listen to lossless versions of overproduced autotune ********. Next up, drinking kool-aid from a wine glass.

 

[bushido]

buy them, switch out the Logo and be done with the horrible AM UI. The tidal interface is pretty much the Spotify interface just even better (still won't be using Tidal cuz I hate their business philosophy)

 

[kyjaotkb]

little birdies tell me that your "45% of users pay extra for the hi-fi tier" is extremely exaggerated, by a 3-digit percentage.