So what is Jay Z thinking? He turned 45 in December. The onetime street hustler is now a husband and a father and hobnobs with world leaders such as President Obama and Nicolas Sarkozy, the former president of France. Some say he has grander ambitions in middle age. “He’d like to be a billionaire,” says Rob Stone, co-founder of the Fader, a magazine that extensively covers the rap world. “He’s talked openly about that. But I think in his mind, it’s no longer just about how much money he’s making. It’s about his legacy and what the name Shawn Carter will mean after he’s gone.” He wants to save the music industry from the brutal economics of streaming—and make himself a fortune in the process. So far he’s doing neither. ... For Jay Z the entrepreneur, the challenge was plain: Find a way to capitalize on the technology industry’s takeover of the music business beyond being a high-priced shill. ... The losses didn’t frighten Jay Z. He offered a 60 percent premium over Aspiro’s market value, according to a filing, and repositioned it as an artist-friendly alternative to Spotify that would pay higher royalties to record labels and artists. ... You can still listen to the catalogs of virtually every Tidal owner on Spotify. ... It’s too early to write off Tidal. But if the company does fail, it may be because Jay Z didn’t anticipate the skeptical response to his claim that he was working for some greater good of all musicians.
In the fall of 1996, Hughes Network Systems introduced the country’s first consumer-grade broadband satellite Internet access. Glover and Dockery signed up immediately. The service offered download speeds of up to four hundred kilobits per second, seven times that of even the best dial-up modem. ... he could share files. Online, pirated media files were known as “warez,” from “software,” and were distributed through a subculture dating back to at least 1980, which called itself the Warez Scene. The Scene was organized in loosely affiliated digital crews, which raced one another to be the first to put new material on the IRC channel. Software was often available on the same day that it was officially released. Sometimes it was even possible, by hacking company servers, or through an employee, to pirate a piece of software before it was available in stores. The ability to regularly source pre-release leaks earned one the ultimate accolade in digital piracy: to be among the “elite.” ... In 1996, a Scene member with the screen name NetFraCk started a new crew, the world’s first MP3 piracy group: Compress ’Da Audio, or CDA, which used the newly available MP3 standard, a format that could shrink music files by more than ninety per cent. On August 10, 1996, CDA released to IRC the Scene’s first “officially” pirated MP3: “Until It Sleeps,” by Metallica. Within weeks, there were numerous rival crews and thousands of pirated songs. ... At work, Glover manufactured CDs for mass consumption. At home, he had spent more than two thousand dollars on burners and other hardware to produce them individually. His livelihood depended on continued demand for the product. But Glover had to wonder: if the MP3 could reproduce Tupac at one-eleventh the bandwidth, and if Tupac could then be distributed, free, on the Internet, what the hell was the point of a compact disk?
For a while we thought we could choose our own music. Remember that? In the wake of the last century we seized the right to take our pick from all of the songs in the world (All of the songs in the world!) and told anyone who didn’t like it exactly where they could go. And when it turned out that was too many songs after all (how many lifetimes are needed for a complete survey of Memphis soul? Or Brazilian funk?), a new category of music services appeared to ease our burden. But these services were flawed, said someone about to make a lot of money, and could only recommend music based on what we were already listening to. Did they even really know what we wanted? Do we not contain multitudes? And so now we have people like Chery. ... Since he left XXL magazine to join the music-streaming service Beats Music (now Apple Music) as head of hip-hop and R&B programming in 2012, Chery and around a dozen of his colleagues, working largely behind the scenes, have embarked on a never-ending quest to organize every song in history into concise playlists that you can’t live without. ... In 2014, when Tim Cook explained Apple’s stunning $3 billion purchase of Beats by repeatedly invoking its “very rare and hard to find” team of music experts, he was talking about these guys. And their efforts since, which have pointed toward curated playlists (specifically, an industrial-scale trove of 14,000 and counting) as the format of the future, have helped turn what was once a humble labor of love for music fans into an increasingly high-stakes contest between some of the richest companies in the world. ... Try any of the major music streaming services today and you’ll find variations on a common theme: thousands of ready-made playlists (“Rich Girl Pop,” “Inspired by Jeff Buckley,” “Songs to Sing in the Shower”) for every conceivable genre, activity, or mood.
For decades, Globo has had a near monopoly in Brazilian living rooms. Its channels control the broadcasting rights to many of the nation’s most popular sporting events, including the World Cup, the Olympics, and the top Brazilian soccer league. Every night about 42 million people watch Globo’s newscast. ... For the past several years, Netflix has been pouring money into Brazil. Local audiences at first met the company with skepticism, bafflement, or indifference. Over time, Netflix started to gain a following, particularly among affluent, young urbanites ... For Netflix, this Brazilian invasion is just the start. The company wants the attention of the world’s well-off cosmopolitan consumers, and is investing billions of dollars in a multifront effort to create a lingua franca of original programming, while also upgrading the world’s video streaming structure. It’s like a worldwide Marshall Plan for premium home entertainment.
Amid a slow growth in royalty payouts, Spotify is investing in a range of projects aimed at keeping artists happy, mostly by leveraging the company’s huge goldmine of listener data. The effort includes new metrics tools for musicians, steadily improving fan targeting, and a range of curated and algorithmic playlists to help artists reach new listeners. ... Spotify’s artist-focused initiatives aren’t sheer acts of generosity, of course: They also have a direct bearing on the company’s future success as a business. The Stockholm-based firm, last valued at $8 billion in 2015, boasts 50 million paying subscribers but steep losses ever since it was founded a decade ago. And the competition, which increasingly comes from tech giants like Apple, Google, and Amazon, is fierce. ... The more indispensable Spotify becomes to creatives, the stronger its leverage in negotiations with record labels. The company is currently in the long-awaited process of renegotiating deals with labels and rights holders, who are anxious for better terms. But like every other streaming platform, it’s eager to shift the basic math of the new music economy further in its own favor