L.A. Reid To Purchase Streaming Service To Rival TIDAL
According to Page Six, Sony Music exec L.A. Reid is getting into the streaming business and secretly bidding to buy a large share of online music service Rhapsody.
Industry sources tell us Reid — chairman and CEO of Epic Records, a division of Sony Music Entertainment — has brought in LA-based private-equity investment firm Pegasus Capital Group to help fund the purchase.
One source said Reid “received a waiver from Sony to personally buy into Rhapsody, but industry talk is that Sony is basically going to own a large piece of Rhapsody.”
Ironically, Sony has a reputation for its aggressive stance against streaming services — they have been battling with Tidal over its licensing deal and are asking a whopping $35 million to allow music from its artists, including Beyoncé, to be streamed on Tidal.
Meanwhile, Jay and team continue to initiate various efforts to spike subscriptions. This week the company announced that it would extend a 50% discount to any student with an email address ending in .edu, bringing the cost of basic service down from $9.99 to $4.99 a month.
TIDAL, which recently launched a desktop version of its app, has also entered a partnership with Ticketmaster to offer tour date access, exclusives giveaways, discounts and pre-sale codes to their subscribers.
It is not yet known when Reid and SONY's purchase of Rhapsody will be finalized.