Jay Z’s Tidal service promised a revolution in streaming. But on its release, all we got was a parade of 16 millionaire musicians telling us that music is awesome, because Nietzsche and Jimi Hendrix said so. Since then, there has been little meaningful discussion of how independent artists will benefit from Tidal’s revolution. The backlash against the service’s 1%-focused rollout has been resounding. Few critics have put the situation into simpler and more eloquent terms than Death Cab for Cutie’s frontman Ben Gibbard.
Jay Z’s newly launched Tidal music service has reignited the debate about the economics of music in an era where streaming services like Spotify, iTunes, and YouTube reign supreme. In hopes of adding to that discussion, Portishead’s Geoff Barrow recently took to Twitter to share exactly how much money the band actually earned from its 34 million streams last year. His estimate: After taxes he was left with £1,700, or around $2,511, according to Consequence Of Sound.
2014 was a big year for streaming, 2015 will be bigger. Apple entering the fray is the catalyst. Apple enters a market when it is ready for primetime. Apple lets the pioneers establish the market, prove the model and create consumer mindshare before it comes in and most often assumes a leadership role. Apple is certainly leaving it later than normal with subscriptions but it is still the same classic follower model, and the marketplace knows it. Hence Jay-Z’s reported €50 million interest in Norwegian streaming service WiMP and Spotify’s reported pursuit of a further $500 million. The first move is ‘let’s get in a market Apple is about to make huge’ and the second is an Apple war chest.