Sean Carter the business mogul who is more popularly known as Jay-Z of the music industry has made a $56.2 million dollar bid for the Swedish streaming company Aspiro through Project Panther Bidco Ltd., a subsidiary of S. Carter Enterprises. The board was unanimous in approving the deal but the vote from the shareholders has yet to come.
WiMP and TIDAL are the two audio and video streaming services of Aspiro that offers “HiFi quality audio”. TIDAL claims to offer users something that is called “lossless sound quality” so that music can be enjoyed the way the artists wanted it to be. If compared to Spotify with 15 million paying subscribers, Aspiro has about half a million users according to Wired Magazine.
Jay-Z’s bid for Aspiro is only one the most recent signs of the growing interest toward streaming. In fact, Apple has bought headphone maker Beats by Dre and its streaming service last year with the hope that it can compete in the giants in the streaming industry that is now dominated by Spotify, Pandora and Rdio. Google has joined the competition as well with YouTube’s new service Music Key while Sony has launched the PlayStation Music that operates through the popular gaming system.
Jay-Z’s subsidiary, Panther has issued a statement in that was published in Hollywood Reporter that the imminent acquisition of Aspiro is based on the recent developments in the entertainment industry. A migration to media streaming is expected to offer increased entertainment consumption and a potential for other artists to share and promote their music.
It is not surprising for Jay-Z to enter the streaming services considering that he is the husband of Beyonce. Jay-Z’s career has also spanned two eras wherein physical sales were the trend. Now that digital sales and streaming are the norm, Jay-Z expects to compete in an industry that is full of strife. Artists have been complaining about Spotify because they do not get enough compensation. On the other hand, Spotify claims the average payout is between $0.006 and $0.0084 per stream and hit songs are streamed for millions of times. The revenue is still pretty good and hopefully, Aspiro will be able to boost both physical and digital sales.