Published
Mon, Feb 6, 2023, 13:10
- The collaboration is an "opportunity for more impact," said TIDAL's Jesse Dorogusker.
Universal Music Group has partnered with streaming service TIDAL.
Announced by Universal last Tuesday, January 31st, the two companies have agreed to work together to devise a new streaming model that better rewards the value provided by artists and enhances the engagement of TIDAL subscribers.
The research will focus on accelerating subscriber growth, deepening retention and better monetising fandom "to the benefit of artists and the broader music community," the statement read.
"We're setting aside our current fan-centred royalties investigation to focus on this opportunity for more impact," said TIDAL's Jesse Dorogusker. "We're thrilled to partner and learn along the way about the possibilities for more innovative streaming economics. This partnership will enable us to rethink how we can sustainably improve royalties' distribution for the breadth of artists on our platform."
Streaming services have long been accused of maintaining favourable relationships with the "big three" major labels: Universal, Warner and Sony. In 2021, Spotify paid $4 billion to the majors. (In total, the streaming giant paid out $7 billion.)
Also in 2021, a report by Competition Policy International concluded that fair competition in music creation risks being compromised by factors such as the nature of royalty arrangements, the role of playlists and the strong negotiating power of major labels–all of which tend to favour "more mainstream, established and international music."
Revisit our feature on Four Tet's legal fight for a more equitable music economy.
Photo: Jo Straube