Contrary to popular belief, Jay Z is not the most influential man in music.
With 19 Grammy Awards, 13 No. 1 albums, a spree of sold out tours, and an estimated net worth upward of $500 Million – Shawn Carter is unquestionably the most successful rapper in history. Yet, despite being consistently crowned a Hip Hop cash king for immeasurable success as an artist and entrepreneur, Jay Z has yet to cross the threshold of influence reserved for today’s top tech CEO’s like Apple’s AAPL -0.81% Tim Cook or Spotify’s Daniel Ek– until now.
Jay Z’s purchase of streaming service Aspiro, for a reported $56 Million, adds the first major tech investment to his impressive portfolio of businesses, which includes Roc Nation Music and Roc Nation Sports. The move marks only the second public investment of its kind made by a Hip Hop icon, behind Dr. Dre’s highly publicized venture with both Beats By Dre and Beats Music.
The success of Dr. Dre’s dominant headphone company and streaming service combined, swiftly placed him atop the highest grossing figures in Hip Hop, amassing $620 Million in 2014. For Jay Z, considering the current climate, owning a music-driven tech company presents the perfect path for quickly breaking into the real billionaire boys club.
Jay Z will host a live-streamed event to reveal his plans for the service, Tidal Worldwide, which offers unlimited listening to high-resolution music for $19.99, extending a free 7-day trial. A press invite for the event was released, promising that “Shawn ‘Jay Z’ Carter and special guests will announce a commitment to a new direction for the music industry from both a creative and business perspective”.
The rapid success of Spotify, which now has over 15 Million paid subscribers and 60 Million total users, shows the power of today’s curation generation. Music platforms have transitioned from the do-it-yourself iTunes model, into hubs of multimedia music content curated for the taste of specific listeners. This model promotes both discovery and hands-free listening, where users find an artist or song they enjoy, then simply let the curating algorithm do its magic.
It’s no secret that technology has revolutionized the music business. More than the evident shifts in how artists are discovered and songs get distributed, the traditional model for measuring scale, impact, sales and other bottom-line metrics has been shattered.
As a result, longtime label executives have been in an ever-evolving race to pick up the pieces and adapt, while thriving tech companies with insight on the inner-working of music consumers continue cranking out devices and services that are completely changing the landscape.
Staying at the forefront of innovation in music is no longer solely about introducing new sounds or experimenting with emerging genres — it’s about developing products and services that enhance how people experience the artists and music they already love. More so, being a mogul now means much more than launching lucrative fashion lines, popular liquor brands and lavish nightclubs.
Going forward, to truly be considered among the most powerful game-changers in music, you must not only control what the masses are listening to, but how they’re doing it.
Artists are now empowered to expand their brands into the tech space, leveraging millions of loyal fans and incredible access to build platforms that will advance the culture. More so, younger artists amassing wealth will be encouraged to make smart tech investments at early stages in their careers, securing additional revenues streams while developing alternative avenues for creating custom experiences.
Technology isn’t the future, it’s the right now. Jay Z stepping into the world of streaming, launching Tidal, sends a clear statement – echoing his groundbreaking Samsung partnership – that there are, in fact, new rules. And, if you do not abide by them – regardless of records sold or fame acquired – there’s only but so much influence you can have on the future of music. [Forbes]
