Jay Z assembled a great team to present Tidal, a music streaming service that “belongs to the artists” and, without free plans, proposes to dethrone Spotify. The market was excited, so much so that the shares of Aspiro, which commands Tidal, had an absurd appreciation after the launch, but the favorable winds seem to have ended.
Two weeks after being briefly among the top 20 most downloaded apps on the American App Store, Tidal plummeted to the point of breaking out of the top 700. Then Andy Chen, Aspiro’s CEO, left the company, leaving the job to the former CEO, Peter Tonstad.
Worse than Tidal’s drift was the strength that the competitors gained. On the 20th of this month both Spotify and Pandora rose a lot, occupying the fourth and third position in the ranking of the most profitable apps, respectively.
It was, as the BGR, the first time that two streaming apps enter the top 4 simultaneously. And for that they even moved Candy Crush Saga out, which is an even more impressive feat.
It does not seem to be a coincidence, but a response from consumers, because as soon as Tidal was announced the download rate for Spotify started to skyrocket. This is because their business model is as similar as it is different: although they offer the same type of service, Tidal does not allow the user to listen to their music for free, in an advertising plan; instead, it offers even more expensive plans that entitle you to superior sound.