Apple shuts down rumors of impending Tidal takeover

Posted:
in iPod + iTunes + AppleTV edited September 2016
Responding to rumors and a Wall Street Journal report concerning Apple's supposed interest in acquiring rival streaming music service Tidal, Apple executive Jimmy Iovine on Wednesday said the company is not currently pursuing such plans.




Iovine, referencing the WSJ report from June, said Apple is not looking to acquire Tidal or any other service at this time, reports BuzzFeed News.

"We're really running our own race," Iovine said. "We're not looking to acquire any streaming services."

Interestingly, the report says Iovine did not deny that Apple and Tidal discussed a potential acquisition. At this point, however, it seems any progress made during those supposed talks -- and a public plea from Tidal stakeholder Kanye West -- are irrelevant.

Following the initial WSJ report, a number of follow-ups from various publications seemingly confirmed Apple had at some point mulled a takeover bid for the Jay-Z-owned streaming service. Speculation at the time suggested Apple's interest in Tidal lay with the company's access to exclusive content, a hot commodity in the streaming industry.

Ironically, Apple Music itself might have spurred the beginning of the end for streaming exclusives when it released Frank Ocean's hotly anticipated albums in August. Ocean, who was contractually obliged to deliver an album for Universal Music Group's Def Jam label, released a visual album called "Endless" on Sept. 19, followed by the more traditional 17-track album "Blonde" just two days later.

Through some crafty dealings, Ocean was able to fulfill his Def Jam contract with "Endless," and release the monetizable "Blonde" under his own label Boys Don't Cry. The move upset UMG Chairman and CEO Lucian Grainge, who after hearing word of Ocean's gambit reportedly called on his executives to halt all future exclusives.

Apple Music currently boasts about 17 million subscribers, while today's reports puts Tidal's figures at around 4.2 million. Both pale in comparison to market leader Spotify, which recently announced subscriber numbers are now at 40 million people.

Comments

  • Reply 1 of 16
    But....but....What about Yeezy?
  • Reply 2 of 16
    apple ][apple ][ Posts: 8,650member
    Good! This was a retarded rumor, and I never liked it. I'm glad that it's dead. Hopefully, I won't have to read about Tidal anymore.

    Tidal is doing bad, and has already lost many millions.

    Apple doesn't need to buy a failed business.

    Screw Tidal.
    edited September 2016 jbdragonbadmonk
  • Reply 3 of 16

    Through some crafty dealings, Ocean was able to fulfill his Def Jam contract with "Endless," and release the monetizable "Blonde" under his own label Boys Don't Cry. The move upset UMG Chairman and CEO Lucian Grainge, who after hearing word of Ocean's gambit reportedly called on his executives to halt all future exclusives.


    I loved hearing about how Ocean stuck it to the record company. Grainge must have been so pissed and must have felt so impotent!

    calibadmonk
  • Reply 4 of 16
    Wonderful news. Maybe this is why the stock rose so much today.
    badmonk
  • Reply 5 of 16
    Rayz2016Rayz2016 Posts: 4,591member
    Wonderful news. Maybe this is why the stock rose so much today.

    Most likely to do with iPhones selling out all over the world …

    What is interesting is that Apple decided to come out and quash the rumour. This is very unusual.

    The longer the rumour festers then the stronger Tidal becomes on the back of it; I suspect Apple didn't want to see that happen.

    Just a thought.
    irelandmike1calibadmonk
  • Reply 6 of 16
    Does ending exclusives mean Tidal lost what was considered a competitive edge?
  • Reply 7 of 16
    irelandireland Posts: 17,584member
    As a rule it's advisable not to do business deals with the mentally ill.
    SpamSandwich
  • Reply 8 of 16
    Rayz2016 said:
    Wonderful news. Maybe this is why the stock rose so much today.

    Most likely to do with iPhones selling out all over the world …

    What is interesting is that Apple decided to come out and quash the rumour. This is very unusual.

    The longer the rumour festers then the stronger Tidal becomes on the back of it; I suspect Apple didn't want to see that happen.

    Just a thought.
    The rumor came out in June and I heard someone mention it again in a report today. I suspect that in June or around that time Apple may have been holding talks, but at this point in time it is done and not going to happen. It is easy for them to just put the rumor to bed and stop speculation. The speculation may make some people happy that think adding 4.5M users is going to help Apple, but it also hurts the folks like me that didn't agree with any such acquisition. Apple is doing fine on their own now, no need to buy Tidal. Also, with the stock going upwards based on iPhone demand, it was a good time to kill the rumor without worry of a hit to the stock. If the street had bought into the rumor, it could have been a small hit on a day with no other news.
  • Reply 9 of 16
    icoco3icoco3 Posts: 1,459member
    Apple can just float alongside the sinking ship, those that jump overboard will be welcomed gladly.  All at no cost to Apple.
  • Reply 10 of 16
    Good...let them die a slow painful death! Serves them right!
  • Reply 11 of 16
    apple ][ said:
    Good! This was a retarded rumor, and I never liked it. I'm glad that it's dead. Hopefully, I won't have to read about Tidal anymore.

    Tidal is doing bad, and has already lost many millions.

    Apple doesn't need to buy a failed business.

    Screw Tidal.
    Apple wouldn't be buying it for its streaming service but the catalog of some of the biggest selling artist currently, I'm sensing your strong dislike for black music as Tidal is primarily comprised of black artists which is ok but some of these guys sell a lot and occupy significant mindshare to many customers and from a business stand point would be worth Apple's consideration especially since the supper evil mega music corps are now killing one of the most competitive weapons streaming had, I for one hope that at some point a deal like the Young Money one is reached, Hov probably wanted too much, but Apple needs exclusives if ever it hopes to enter the content game from authors, screenplay writers, musicians etc, Apple brings the cash the artist create the entertainment exclusively for Apple hardware
  • Reply 12 of 16
    calicali Posts: 3,495member
    Execs cut off exclusives, Tidal deal is dropped.
  • Reply 13 of 16
    Rayz2016 said:
    Wonderful news. Maybe this is why the stock rose so much today.

    Most likely to do with iPhones selling out all over the world …

    What is interesting is that Apple decided to come out and quash the rumour. This is very unusual.

    The longer the rumour festers then the stronger Tidal becomes on the back of it; I suspect Apple didn't want to see that happen.

    Just a thought.
    The rumor came out in June and I heard someone mention it again in a report today. I suspect that in June or around that time Apple may have been holding talks, but at this point in time it is done and not going to happen. It is easy for them to just put the rumor to bed and stop speculation. The speculation may make some people happy that think adding 4.5M users is going to help Apple, but it also hurts the folks like me that didn't agree with any such acquisition. Apple is doing fine on their own now, no need to buy Tidal. Also, with the stock going upwards based on iPhone demand, it was a good time to kill the rumor without worry of a hit to the stock. If the street had bought into the rumor, it could have been a small hit on a day with no other news.
    For the right price, I don't think Apple would have hesitated to add 4.5 million actives users. The problem might have been the number of unique users was far lower than that, making the acquisition less appealing.
  • Reply 14 of 16
    and though i am still fooling around with it, iOS 10 has fixed a lot of Apple Musics UI problems.  It's great.
  • Reply 15 of 16
    gatorguygatorguy Posts: 20,583member
  • Reply 16 of 16
    Sprint just announced they took a 33% stake in Tidal. IMO, an expensive mistake, but there you go.
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