Tidal’s Trying To Boost Users With Discounted Deals
By Taylor Durham
Tidal is offering a 40% discount for its Premium and Hi-Fi plans for first responders
Streaming music makes up 80% of the music industry’s revenue
Tidal, the music streaming platform acquired by Jay-Z, is now seeking to attract more subscribers by heavily discounting its subscription service for first responders. If you consider yourself to be a hero, this may be the deal for you since the company is offering a 40% discount for its Premium and Hi-Fi plans, the most expensive for a streaming platform. Is it genius marketing or a company struggling with growth?
Why This Matters: Tidal’s numbers are estimated to be in the area of one million subscribers and that may have something to do with the price. It’s the most expensive option on the market at $20 per month. Amazon Music (AMZN +1.78%) and Apple Music (AAPL -0.23%) come in at $14.99 and $9.99 respectively. You’re probably thinking, “Why so expensive?” Well, Amazon and Tidal are the only platforms that offers High Fidelity streaming on top of regular streaming, meaning better sound clarity and depth. What’s the difference? Most users will exchange quality in favor of price and selection.
Earlier this year, Amazon launched its own music streaming platform alongside Apple Music, Spotify (SPOT +2.97%) and Tidal. Apple Music and Spotify boasts 108 million and 60 million subscribers respectively. With a 56 million song catalog and millions of Prime users at the ready, Amazon Music seemed all ready to dominate. Tidal and Amazon are going head-to-head over the High Fidelity market and the e-commerce giant seems eager to pull the trigger and knock them out of the competition.
The onset of streaming has poured new life into the music industry, with revenue hitting $5.4 billion earlier this year, $4.3 billion just from streaming services. The market continues to grow exponentially and the four platforms have the advantage of being the first in the space and the ability to handle the bandwidth required.
Situational Awareness: As expected, streaming services are becoming the go-to option for consuming all forms of media. As one of the four main music platforms, Tidal has the opportunity to capitalize on this growth, but time will tell if the platform’s offerings are worth the price and whether it can grow its subscriber base.
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