Jay Z’s Tidal Music Records Huge Losses
Jay Z’s Tidal music streaming service is in troubled waters as the company posted monumental losses last year and has had trouble making payments on time, Norwegian business daily Dagens Naeringsliv (DN )reported on Tuesday September 13, 2016.
Tidal, core holding of parent group Aspiro posted a loss of 239.5 million Swedish kronor (€25.1m, $28m) last year, according to DN which examined the unlisted company’s accounts.
Tidal has also received around a hundred payment default records since Jay-Z bought the company through his holding group Project Panther Bidco for $56m in March 2015.
It has 3.6 million Norwegian kroner (390,000 euros, $438,000) in outstanding payments due, DN claimed.
According to DN, Jay-Z’s lawyers have accused Tidal’s former owners including Norwegian media group Schibsted, of inflating the number of paying customers ahead of the sale, a charge which they have however denied.
At the end of June, the Wall Street Journal reported US group Apple was in talks with Tidal regarding a possible purchase,aimed at beefing up its own streaming service Apple Music.
Tidal soared in popularity early this year afterBeyonce— Jay-Z’s wife — released her latest album “Lemonade” exclusively on the service, although it was also broadcast in a film version on HBO and quickly made available on iTunes.
Tidal, which had a mixed reception after its relaunch last year, has also heavily promoted exclusives, such as albums by Rihanna and Kanye West.