[divider]HOW TIDAL IS DIFFERENT[/divider]
There’s a few initial differences that make Tidal a music streaming service unlike any other. The thing consumers will notice first is the lack of a free tier of service. If you want to use Tidal, you’ll be paying for it. There are two different tiers of service: one costing $9.99 (the same as Spotify) for standard quality audio and high-definition music videos, and the other priced at $19.99, with the major benefit being higher quality audio that competitors can’t match.
There is an entire ecosystem around [music], and we’ve somehow come to believe that it’s okay to pay hundreds for consumer electronics but to pay nothing for the music that helps sell it. It’s around the education process, with that there will be higher royalties. – Schlogel
Another difference that makes Tidal unique, and is at the core of their mission, is the royalty percentages paid to artists. The minuscule profits that major artists make off of streaming services like Spotify and YouTube have been analyzed and discussed in the media for a while now. But, unlike other aspects of the music industry, this is getting a reaction.
There is no free tier and we’ll pay the highest royalty percentage. That’s how we’ll change the industry, as well as through a number of other things… – Jay Z
There’s no catch or gimmick, and for a company who’s initial face is that of millionaire artists, the clarity and forwardness from Jay Z regarding Tidal’s goals is refreshing. They think they deserve more, and they’re making that feeling known while attempting to make an immediate impact.
A major factor in the success of this angle will be whether or not consumers will be willing to pay for a service that, at least initially, provides little difference in terms of product. The market for high quality audio is there, and the standard tier price-point is on par with competitors. But, in order for Tidal to be what Jay Z envisions it to be, young people will need to care about where their money is going, not about what they’re getting in exchange.
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