Square Inc announced it would purchase a majority stake in Tidal worth $297 million in cash and stocks. This Tidal purchase by Square should be very exciting news for artists as Square will now provide financial backing to the growing streaming service. Not just in terms of financial capital, but also the financial knowhow. Artists need a team to turn their art into a business and Cash App could provide that team all in an app. Selling merchandise, concert tickets, digital albums and eventually NFT’s, will be available at your fingertips.
Who is Square?
Square Inc initially gave small business owners the power to process electronic payments using a device small enough to fit in the palm of your hand. This technology has grown rapidly over the last few years and now allows users to transfer and store digital assets such as digital dollars, stocks and even Bitcoin via the popular Cash App. Cash App quickly grew in popularity in the urban community because it allows for quick and safe electronic payments. This is to a group of people that has been historically mistreated by big banks.
What’s up with Tidal?
Founded in Norway, Tidal kicked off its music streaming service in 2014 and was quickly purchased by Jay-Z accompanied by a slew of other artists including Rihanna, Kanye West, Alicia Keys, and more. Tidal has over 70 million songs and was an early trailblazer in the HiFi (high-fidelity) audio streaming. This streaming service may not have nearly the amount of subscribers as Apple Music, Spotify, or Amazon Music, but the fan base is loyal and in 2016 over 45% of them paid for the HiFi premium service. Tidal also provides a significantly higher payout to the artists compared to Apple Music and Spotify.
“We’re interested in a 360-degreee view of artists as small-business owners. Streams is just a subset of what they do,” says Square Inc’s top hardware executive, Jesse Dorogusker who will lead Tidal on an interim basis.
What this could mean for Artists?
With the development of NFT’s and Square’s purchase of Tidal, we can start to see a path for artists to regain control of their art without the dependency of major record labels. It sure is an exciting time for all creatives.
#GetSOM #Q #Tidal #Square #NFT