Payment technology company Block has acquired music-focused startup Hifi to support the latter’s growth in financial technologies and services for artists. Hifi launched its services in 2020 as a financial rights organisation for artists, allowing users to track their royalty income through a dashboard that collects data from music labels, distribution services, music publishers, and Performing Rights Organisations (PROs). Being supported by investors and music creators, Hifi’s main goal is to provide financial products that allow artists and their teams across the industry to achieve financial transparency and independence.

By joining Block, the company aims to further share its commitment to economic empowerment with financial technologies and services. Block’s input in the music industry Block, formerly known as Square, is recognised for its payment and ecommerce solutions software Cash App, but it expanded its services into the music industry by acquiring a majority stake in TIDAL in 2021. The USD 300 million deal aimed to allow artist-partners to maintain their ownership in the music company.

At that time, the deal also installed musician and businessperson Jay-Z on the company’s board. Currently, Block is a conglomerate of Square, Cash App, Spiral, TIDAL, TBD, and their foundational teams, including Counsel, Finance, and People that provide guidance at the corporate level. The company also owns the Buy Now, Pay Later platform Afterpay and the web builder Weebly, among others. Back in May 2023, TIDAL launched a new artist platform that aims to provide artists with more control over their careers.

TIDAL Artist Home enables performers to manage how fans see their TIDAL profile, as well as obtain early access to products and resources built for them. Officials from the company stated that their objective was to create a platform that could economically support emerging artists around the world. The rise of music streaming platforms According to Statista’s report, streaming revenues reached USD 17.5 billion worldwide in 2022, the highest ever recorded and more than six times the figure from 2015, when the amount reached USD 2.7 billion.

Currently, streaming revenues account for approximately 67% of total global recorded music revenue. The music industry has been impacted by the development of technology, with physical sales decreasing substantially due to the rise in popularity of streaming platforms. The US album shipments amounted to USD 939 million in 2000, dropping constantly until the figure reached USD 31.6 million in 2020. Streamlining platforms became a fundamental part of the music industry’s landscape, with 82.1 million paying subscribers only in the US.

Currently, Spotify leads the market, commanding 32% of music streaming subscribers in the region, while Apple Music and Amazon share 16%, respectively 13% of the sector. .