Is this the beginning of the end for TIDAL?
The halls of Block have gone oddly quiet about one of its most famous board members.
The company has banned internal discussions of Jay-Z across all platforms, from Slack to email, with no explanation for the sudden silence. This mysterious gag order arrives at a critical moment for TIDAL as the platform struggles with layoffs and shrinking budgets.
What does this mean for TIDAL? Is Block planning a careful exit from the music streaming business?
Block’s Directive on Jay-Z and Its Implications
Block’s decision to silence any mention of its board member, Jay-Z, also known as Shawn Carter, has left employees and observers guessing.
However, recently, Block instructed employees not to discuss Carter on internal channels. And, this reportedly comes without explanation.
Many think the directive is tied to Carter’s association with Sean “Diddy” Combs, who is facing federal charges, including allegations of sex trafficking. The two music moguls have often been seen together at events and industry gatherings. So, some Block staff may be questioning Carter’s place on the board.
The timing of this directive also seems far from random as it arrived alongside major job and budget cuts at TIDAL. Many speculate that Block might be slowly moving away from both TIDAL and its high-profile board member.
But, the company hasn’t confirmed any connection between these moves.
The growing tension became more obvious during a virtual company meeting with Dorsey.
Breaking from usual practice, he kicked things off by telling staff they needed to be more positive about the ongoing changes. He also removed the option for anonymous questions so it’s harder for worried employees to speak up freely.
And, instead of addressing growing concerns, Dorsey had other Block executives share what made them “happy” to work there as a distraction.
From Music Streaming to Bitcoin
Block’s latest moves paint a clear picture of its new direction, at least based on its Q3 2024 shareholder letter.
This announcement puts official weight behind what many industry watchers had suspected. It just aligns perfectly with Dorsey’s long-standing enthusiasm for cryptocurrency projects.
But this change in focus comes with a real human cost.
Beyond TIDAL’s struggles, Block has begun laying off workers across its other brands, including Square and CashApp. And, when employees have asked for more details about their future, Block’s leadership has simply pointed them back to the shareholder letter, leaving many to wonder about their job security.
What Lies Ahead for Block and TIDAL?
TIDAL’s story shows how star power alone can’t guarantee success in the streaming wars. While Jay-Z and Beyoncé brought plenty of buzz, the platform needed more than famous faces to thrive in today’s cutthroat music market.
The numbers tell the story. Spotify, Apple Music, and Amazon Music control over 90% of the market. Despite TIDAL’s attempts to stand out with artist ownership and premium sound quality, its subscriber count sits at just 721,400 – a tiny 0.5% slice of U.S. streaming users.
Now, under Dorsey’s watch, TIDAL is trying something new: a “startup” approach.
Meaning, it’s shrinking to a small team focused on engineering and design while reducing product management and marketing staff. The idea is that a lighter, more agile TIDAL can create unique features faster than its bigger rivals.
But this strategy raises some red flags.
Product managers understand what listeners want and marketing teams are needed attract new users. Without them, TIDAL risks building features that nobody asked for.
It’s like creating the perfect product that no one knows exists.
TIDAL could still survive by focusing on specific listeners, such as audiophiles and indie music fans, who care about sound quality and supporting artists. But, even this targeted approach needs proper marketing and fresh ideas to work.
The bigger question looming over TIDAL is whether Block truly wants to keep investing in music streaming at all.
Resources flowing toward Bitcoin projects and communication barriers going up around Jay-Z. So, it seems like Block might be preparing for TIDAL’s final curtain call.
Instead of having it focus on things that will help it compete with other streaming platforms, it looking more like Block is giving up on the platform. Is it the beginning of the end for TIDAL?