Brooklyn Rapper, Jay Z, is considered a savvy business mogul, but his music streaming business would beg to differ.
Tidal, the high-fidelity streaming service relaunched by Jay Z with great celebrity fanfare in 2015, once again is the subject of speculation that its financial straits are dire. According to a report in Norwegian newspaper Dagens Naeringsliv, Tidal lost $44 million before taxes last year and has six months of cash left.
Still, Tidal is not alone when it comes to losing money in the streaming music game. Spotify reported that it lost about $581 million in 2016, with revenue of $3 billion, The Verge noted.
Last year, The Wall Street Journal
reported that Aspiro, the Swedish-based holding company that controls Tidal, had a loss of $28 million in 2015.
Jay Z announced in February 2015 that his Carter Enterprises had bid $56 million for the service and relaunched the service in March 2015 with a star-studded party attended by wife Beyonce and including Kanye West, Alicia Keys, Madonna, Chris Martin, Nicki Minaj and Daft Punk. Each of the artists reportedly also were given 3% equity in the company, with Jay Z holding the remaining stake.
Tidal has had its moments. In July,
the service jumped to No. 1 in Apple’s App Store with the launch of Jay-Z’s new album 4:44 .
Also earlier this year, wireless provider Sprint acquired a 33% stake in Tidal. Sprint subscribers currently get six months of free high-fidelity Tidal service and Sprint-Tidal customers also get exclusive content on the music service.
Back in March 2016, Kanye West’s
The Life of Pablo generated 250 million streams in its first 10 days, boosting the service’s global subscriptions to more than three million.
Last year, Jay Z filed suit against the previous owners saying he was given inflated subscriber number.
Jay Z is worth over $800 million dollars and would probably still be alright, regardless.