Sprint and Tidal

blog-2My last blog post centered around the age of exclusive music. Since that last post, a big thing has happened in that same area. Tidal, the music company owned by Jay Z that has exclusive music deals with Kanye West, Beyonce and others, started a sort of exclusive music deal war with other streaming companies. As of January 23rd, Sprint invested in Tidal, and now owns 33% of the company. The deal is worth around 200 million dollars, making the company now worth 600 million. According to The Verge, “The deal will also spur the creation of a $75 million marketing fund for Tidal artist exclusives and initiatives, according to Billboard.” Sprint is using this deal to keep subscribers through the idea that they will now have closer access to the 20+ huge exclusive artists that Tidal has. Being possibly the largest shareholder in the company depending on how much Jay Z has still held on to, means that it won’t be long until we see huge names most likely marketing for Sprint who are connected to Tidal. So far, there is not a definite plan on how they are going to work it out, but there are rumors on limited free subscription to Tidal and even more exclusive access to Tidal if you are a Sprint consumer. T-Mobile and Sprint are also rumoring to maybe pair and merge in the future, giving Tidal an even bigger base of customers, and more incentive to switch cell companies if the benefits are big enough for music lovers. This investment has the potential to bring Sprint back into the limelight with AT&T and Verizon, or to backfire and really set Sprint behind.

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2 thoughts on “Sprint and Tidal

  1. Wow! This deal is certainly something to watch going forward; the cell phone service market is viciously competitive and I’m sure this will only add fuel to the fire as Sprint `looks to close the gap between Verizon and AT&T. I will be interested to see how competitors of Tidal like Spotify and Pandora will be affected by this meal.

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  2. While I agree that this has the potential for being very positive for Sprint, I think the bigger winner in this deal is Tidal. Until now, Tidal hasn’t had the capability to advertise as much as Pandora or Spotify but a high-profile deal like this and the capital investment will definitely attract potential new artists and advertising channels. As far as Sprint is concerned, I personally do not believe this deal will have a large impact on the market share of cellular providers. We’ll have to see.

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