The new online streaming company, Tidal, founded by Shawn “Jay Z” Carter and sixteen artists entered into the highly competitive online streaming music landscape in October 2014. They made their first press release in March 2015. They received mixed reactions regarding the motivation behind this formation. Please provide your thoughts on the following questions.
(1) Briefly analyze the online music streaming market (market size, market growth rate, main players and their share in the market, customer demographics). Based on this analysis, please evaluate the main motivation behind Tidal.
(2) Who does Tidal think of as their main target market? What is Tidal’s unique value proposition to them?
(3) We discussed several revenue models (e.g.. free as a business model, subscription, long tail, unbundling). What is Tidal’s revenue model [how are they planning to make money]?
(4) Based on your answers in (1), (2), and (3) please evaluate the substance and performance of Tidal’s business model. Do you find it as a successful business model that will most likely thrive? If yes why? If no why?
