[UPDATED] Sprint has acquired a 33% stake in TIDAL, throwing the Jay Z lead music streamer a lifeline. Rumors that TIDAL was struggling, which have been swirling for months, intensified last week after a detailed report that Tidal had been inflating subscriber numbers.
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TIDAL and Sprint announced a partnership today that includes the mobile carrier acquiring a 33% stake in the music streamer for a reported $200 million. Jay Z and his other artist-owners will continue to run TIDAL, according to the announcement, but Sprint’s chief executive officer, Marcelo Claure, will join TIDAL’s Board of Directors.
Under the deal, Tidal artists will begin delivering exclusive content to Sprint’s 45 million retail customers that also subscribe to Tidal. The partnership should provide Tidal with needed cash, marketing clout and direct billing with customers of the fourth largest mobile carrier in the U.S.
No current TIDAL subscriber numbers were included in the announcement, but estimates place users at just 1 million. TIDAL is available in 52 countries, with a 42.5 million song catalog and 140,000 videos. Sprint is owned by SoftBank, a Japanese multinational telecommunications corporation.
$75 Million Fund For Artists
Sprint will also establish a dedicated marketing fund which will “allow artists the flexibility to create and share their work with and for their fans.” The fund, which puts TIDAL in direct competition for content with the major labels, Apple Music and others, will be seeded by $75 million from Sprint and finance both exclusives and artist marketing, a source tells Billboard.
“Sprint shares our view of revolutionizing the creative industry to allow artists to connect directly with their fans and reach their fullest, shared potential,” said Jay Z in a statement. “Marcelo understood our goal right away and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience.”
“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,” said Claure. “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.”
News on exclusive offers and upcoming promotions from Sprint and TIDAL will be shared soon, according to the announcment