Exciting TIDAL Sale to Sprint Will Quickly Boost Artist Revenue
In addition to the news spreading about SoundCloud and the Grammys, today Jay Z and TIDAL made a major move with Sprint.
The cell service provider has purchased a 33% stake in TIDAL which will give it access to over 45 million retail customers. The deal was worth $200 million.
Syntax Creative’s Tim Trudeau told Rapzilla that this can “be an amazing thing” if Sprint were to bundle TIDAL with each of their service plans. He said the move can be similar to what Cricket Wireless did with Muve Music a few years ago.
“The cellular customer pays one price, and they get both the plan and the music included,” he said.
For instance, if you are paying $10 additional a month and multiply that by Sprint’s 45 million users, that’s a lot of money. “it creates an incredible royalty pool [for the artist].”
Jay Z said of the deal: “Sprint shares our view of revolutionizing the creative industry to allow artists to connect directly with their fans and reach their fullest, shared potential. Marcelo understood our goal right away and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience.”
According to early reports, $75 million of the funds will be allocated to artist exclusives and initiatives with Sprint users getting special features.
“Jay saw not only a business need, but a cultural one, and put his heart and grit into building TIDAL into a world-class music streaming platform that is unrivaled in quality and content. The passion and dedication that these artist-owners bring to fans will enable Sprint to offer new and existing customers access to exclusive content and entertainment experiences in a way no other service can,” said Sprint CEO Marcelo Claure.
Stay tuned to find out more about this potential historic music deal.