Universal Music Group and Tidal have revealed plans to collaborate on a new model for streaming to benefit artists and fans.
The news follows UMG chairman & CEO Sir Lucian Grainge’s call for a more “artist-centric” streaming model in his annual New Year address to UMG staff.
A press release states that Tidal and UMG will “harness fan engagement” to explore how DSPs can “generate greater commercial value for every type of artist”.
Tidal Lead Jesse Dorogusker said: “From day one, Tidal has stood out as artist-first, leading with a premium subscription tier to pay artists more and experimenting with new ideas like fan-centered royalties to see if there are fairer and more equitable ways to get artists paid. We are setting aside our current fan-centered royalties investigation to focus on this opportunity for more impact. 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’s economic model needs innovation to ensure a vibrant and sustainable future
Michael Nash, UMG
Michael Nash, UMG EVP, chief digital officer stressed the importance of streaming in protecting the future of the industry.
“As the digital landscape continues to evolve, it’s become increasingly clear that music streaming’s economic model needs innovation to ensure a vibrant and sustainable future,” Nash said.
He added: Tidal’s embrace of this transformational opportunity is especially exciting because the music ecosystem can work better – for every type of artist and fan – but only through dedicated, thoughtful collaboration. Built on deeply held, shared principles about the value of artistry and the importance of the artist-fan relationship, this strategic initiative will explore how to enhance and advance the model in keeping with our collective objectives.”
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