Sprint is thinking of making an investment in Jay Z’s Tidal music streaming service, which has been newly re-launched. Some reports suggested that an investment had already been made in Tidal by Sprint and Softbank Corp, its parent company. The Tidal streaming service wishes to compete with Pandora, Spotify and Apple’s expected streaming service.
However, a statement issued by the company said that it is conducting discussions with Tidal to decide the best possible way for making the service available to customers. It also said that an investment hadn’t been made by Sprint and they were only working together for reestablishing the value of music so it wasn’t an exclusive or financial partnership. Likewise, the company said that no investment had been made in Tidal by Softbank Corp either.
Launched on Monday at a New York event filled with popular stars, Tidal has a very small base of paying customers, somewhere around 500,000, which is considerably less than the 60 million subscribers of Spotify, at least 15 million of which are paying ones. However, Tidal is different because of its Hi-Fi subscription level that charges around $19.99 and offers high-definition sound. For getting the same sound quality as Spotify, you will be charged $9.99 a month. The service is available for a trial of 30 days.
It is also planned by Tidal to provide its users with exclusive artist content such as studio sessions, videos, interactions with fans and even rough tracks. Jay Z said that it wasn’t just about offering music for streaming; it was about giving it value that has been lost recently with the streaming trend. Currently, artists are being paid the highest royalty by Tidal and the service is also looking into the student discount service like Spotify. In fact, artists don’t have to go to music labels now, they can just go to tidal as Jay Z is doing.
In response to the $19.99 charge, Jay Z said that the $9.99 plan was good for music listeners who use headphones, but those who have hi-fi equipment around will find the hi-fi plan really good. The rapper was also positive that they could reverse the trend of devaluation of music as it was just about perception. However, this may be easier said than done as statistics reveal that there was a 13% decline in the sale of CDs and the number of iTunes download is also falling drastically.