Apple Music’s head Jimmy Iovine has quashed rumors that Apple Inc. (NASDAQ:AAPL) is interested in acquiring Tidal, a streaming service rolled out by legendary rapper, Jay Z. Instead, he said that the iPhone-maker would continue to focus on its own independent music platform, Apple Music. "We're really running our own race. We're not looking to acquire any streaming services," Iovine said.
Although both Tidal and Apple Music were rolled out for users last year, the rising trend of music streaming has mounted pressure on companies to offer features that were never offered before.
Tidal was originally part of Aspiro, but was later acquired by Project Panther Ltd. in March 2015. While it may not offer its users with an array of options, the service’s association with high-profile artists such as Rihanna, Chris Martin, Calvin Harris, Kanye West, and Beyoncé helped it to capture the attention of music-lovers around the world.
Apple Music and Tidal recently came under the spotlight when rumors revealed both companies were in the middle of a “beef.” According to Kanye West, this hostility would only contribute to a weaker music industry if not stopped at the right time. The artist purposely declared that his last album “The Life of Pablo” would never appear on Apple Music, a bait to lure more users to Tidal. Although his album eventually surfaced on the tech giant's streaming service, his gesture managed to shake up Apple Music which was interested in securing the album for its own self.
Currently, Tidal thrives in markets with its 4.2 million paid users. According to a report, several streaming services including Spotify, Google, and Samsung had expressed their interest in Jay Z’s service. Since platforms like Apple Music have taken several measures to ramp up exclusives from trending artists and offer subscribers a range of exciting features, there were chances that the company would consider acquiring Jay Z’s service in order to establish itself in the streaming industry in the future.
With its 17 million subscribers, it is highly likely that Apple Music may consider the acquisition to compete with the likes of Spotify, which continues to dominate streaming markets with its 40 million paying users, and an additional inflow of 70 million users who use the service’s “freemium” tier.