Square’s majority stake in Jay-Z’s streaming service Tidal will potentially help artists grow their fan bases using blockchain technology, a Gartner analyst said.
Square’s majority stake in Jay-Z’s streaming service Tidal could potentially result in some blockchain-related functionalities on the platform, according to one analyst.
Avivah Litan, a technology analyst at consulting company Gartner, suggested that Square’s $297 million investment could push Tidal to start taking advantage of new technologies like blockchain and cryptocurrencies, Reuters reports Friday.
With Square’s help, Tidal would specifically benefit from the technology of non-fungible tokens, or NFTs, which allows artists to certify ownership for photos, videos and other digital content, the expert noted. NFT technology could easily track the provenance of autographs and memorabilia, potentially making them even more valuable for fans, Litan said.
Square officially announced that the company entered into an agreement to acquire a majority ownership stake in Tidal on Thursday, claiming that Tidal will continue operating independently within Square, alongside its Seller and Cash App ecosystems. CEO Jack Dorsey subsequently hinted that Square will focus on the critical needs of artists and growing their fan bases in a similar way that the firm has been doing for Cash App clients, stating:
“Square created ecosystems of tools for sellers & individuals, and we’ll do the same for artists. We’ll work on entirely new listening experiences to bring fans closer together, simple integrations for merch sales, modern collaboration tools, and new complementary revenue streams.”
Square did not immediately respond to Cointelegraph’s request for comment.
Available in 56 countries, Tidal is an entertainment platform owned by some of the world’s most famous celebrities like Kanye West, Beyoncé, Madonna, Rihanna and Nicki Minaj. The platform has sought to distinguish itself from other popular streaming platforms like Spotify by committing to providing sound quality to listeners and a greater share of revenue to artists. Jay-Z bought Tidal for about $56 million in 2015 from Norwegian entrepreneurs.