It was this rule that was the source of tension between the beloved music streaming service and Taylor Swift, a rift that was painfully public and resulted in Apple Music’s triumphant acquisition of sole rights to stream Swift’s music. At the moment, Universal has no say on Spotify’s blanket accessibility for users regardless of subscriber status. Under the new agreement, Universal agrees to a lower margin with the caveat that Spotify would loosen its otherwise strict exclusivity rule. Currently, record companies take a 55 percent slice while publishers take an additional 10 to 12 percent. It’s a victory for Spotify, who has been trying to get labels in charge of music licences to take a smaller cut of profits in order to strengthen its revenue stream. The deal came after months of negotiations between Universal and Spotify. SEE ALSO: Closer to ‘Music for Everyone’: Spotify set to launch in Japan next month Tidal is beginning to close ranks and consolidate its assets as the Universal-Spotify deal has thrown a huge gauntlet down into the music streaming industry.
Some parties argue it might be a bit late for Jay Z to be pulling his catalog when Tidal has been out for almost two years now, but the sentiment is there. It makes sense why Jay Z would have pulled his catalog from Spotify – Jay Z’s fanbase is still large and could pad out Tidal’s small subscriber numbers. Apple Music has said it has 20 million subscribers at last count, while newcomer Amazon could potentially have a base of 10 million. It has around three million subscribers, while Spotify has around 100 million users, 50 million of whom pay its monthly fee.
However, Tidal’s numbers are miniscule compared to its rivals. His move to step into the music streaming business was borne out of frustration with the shoddy compensation artists receive from online music services. The service boasts many of Jay Z’s peers and some of the biggest names in the business, such as Rihanna, Alicia Keys, and wife Beyonce’s Lemonade, which is exclusively available on Tidal. He touted the service as a self-proclaimed artist-friendly service with better royalty deals and improved sound quality.
Jay Z acquired Tidal in 2015 for US$56 million.
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