99 problems and I think we now have the 100th one. Things aren’t going well for Jay-Z’s Tidal music streaming service. It literally appears to be a sinking ship when compared to is competition from other streaming services like Spotify, Pandora and Beats Music.
Recently Tidal dropped out of iTunes top 700 apps within two weeks of its launch, and is reportedly only averaging 1 million streams per day in total. Tidal’s rivals are surging with both Spotify and Pandora sitting on top of the U.S. iPhone Revenue chart at numbers 3 and 4.
It looks like Tidal’s attacks on Spotify and Pandora actually managed to increase public awareness of the services, boosting Spotify’s download performance in particular at the end of March. And now, a few weeks later, the combined revenue performance of the two music apps is hitting a new milestone. To add insult to injury, Beats Music has started cracking U.S. iPhone top 20 revenue chart. Soon after Tidal’s launch fiasco, Tidal’s CEO was given the boot in a move that was called “streamlining.” Peter Tonstad, a former consultant for the Norwegian Ministry of Environment, was named the new CEO.
According to HDD, “Jay Z’s Tidal has opted to ignore the new-artist sector in favor of superstars, and the strategy is not working. For example, it’s believed that Tidal’s total streams average around 1m a day, while individual tracks on Spotify regularly hit that number. Tidal’s top-heavy branding approach, with its emphasis on these older, established acts, simply doesn’t have the currency that Apple has maintained by prioritizing newer acts, having discerned early on that the discovery process is part of the cool factor.” Tidal has also been to blame for dropping the ball with the release of Rihanna’s “American Oxygen” single.
To make matters worst, Tidal’s attacks on Pandora and Spotify have actually managed to increase public awareness about these other services after Tidal started bashing their small payouts to artist. Spotify surged back into the iPad top 40 download chart on March 31st, exactly when Tidal’s anti-Spotify campaign hit its peak in American media.
Let’s just face it, Jay-Z is asking people to pay too much money for the Tidal streaming service, and it’s a flop.