Tidal once again is reported facing financial troubles. According to a story run by Norway’s Dagens Næringsliv, with the money they currently have the music streaming company only has about six months to survive.
A Tidal spokesperson has refused to either confirm or deny the report. Saying that the company’s already used to “negative stories about Tidal” which the media has been covering since the company begun a few years ago, the spokesperson said in a statement to The Verge that they “have done nothing but grow the business each year.”
In attempt to rival Spotify, Tidal was started in 2015 by rapper Jay Z who earlier in the year shelled out more than $50M for it. Despite having music’s big names like Kanye West, Pharrell and Katy Perry support the launch, the service has never been a big hit.
Even after it continuously released Tidal-exclusives like Kanye and Jay Z’s respective albums as well as some music by Hov’s wife Beyonce, the number of the platform’s subscribers could never surpass that of its competitors including Spotify and Apple Music.
Due to the stalled number of subsribers, Tidal was said to lose NOK$368 million (that’s around US$44 million) before taxes last year. In the same years, Spotify lost $581 million but its revenue was around $3 billion.
At the beginning of this year, Sprint came to Tidal’s aid by purchasing a 33 percent stake of the streaming service. Tidal exec Juan Perez at the time said that the Sprint investment could give Tidal “sufficient working capital for the next 12-18 months.” The company further said that it will break even soon and they would then achieve profitability in mid-2018.
What do you think of the report? Do you think the constant negative coverage over Tidal has anything to do with the service’s stalled subscriber numbers? Share your thoughts in the comment section below, and share this article if you find it useful.