Last week, Jay Z and some others announced their “rescue” of modern day music consumption. Tidal. Uh yes. Absolutely. Consumers are definitely waiting for another music subscription service. Especially one that serves them the music at truly high bitrates, rapidly consuming everybody’s data plans, against a fee that is twice as much as Spotify, while 90% of the market is consuming over low budget headphones anyway.
Jay Z and buddies feel they don’t get paid enough by companies like Spotify. Well, it is true of course that Spotify is making a whole lot a money so one could doubt whether their margins are too big. On the other hand: Beyonce bought Jay Z a $50 million private yet for fathers day. That is pretty much the amount that I would spent on a father’s day gift, multiplied by one million.
So they’re using fear as a business model. Their fear, to become less rich, drove them to do this. A marginally better service at a double price. A selfish-millionaire centric business model, not a customer centric one, with bitrate as the only differentiator. Call that innovation.