It's a hard knock life! Jay-Z's streaming service Tidal 'loses $28 MILLION'

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imirza

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It's a hard knock life! Jay-Z's streaming service Tidal 'loses $28 MILLION' and has been late on its payments almost 100 times since March 2015

Read more: Jay-Z's Tidal 'posts huge losses of $28 MILLION' in one year

Jay-Z's music streaming service Tidal reportedly posted heavy losses and struggled to make payments on time last year.

Tidal's parent group Aspiro had a loss of $28 million (239.5 million Swedish kronor) last year, according to the Norwegian business daily Dagens Naeringsliv.

The outlet discovered the huge losses after examining the accounts of the Swedish-based company.

Tidal is Aspiro's core holding.

According to the newspaper, Tidal received about 100 payment default records since Jay-Z bought the company through his holding group, Project Panther Bidco, for $56 million in March 2015.

The New York rapper turned mogul's lawyers have reportedly accused Tidal's former owners, including Norwegian media group Schibsted, of overstating the number of paying customers it had ahead of last year's sale.

The accusation has been denied.

Tidal has made headlines in recent times after it was reported Apple was in talks with the company about a possible purchase, which was designed to beef up its streaming service, Apple Music.

Tidal soared in popularity early this year after Beyonce - Jay-Z's wife - released her latest album 'Lemonade' exclusively on the service.

An accompanying film version of the album was broadcast on HBO, and the album was quickly made available on iTunes.
 
W.I.Z.E.

W.I.Z.E.

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  • Pandora lost money when it started...including when it went public in 2011. This was after multiple investments and almost a decade in existence. In Q4 of last year it lost $19.4 Million. In all of 2015...it lost $169 million
  • Spotify continues to lose money
 
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imirza

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W.I.Z.E. said:
  • Pandora lost money when it started...including when it went public in 2011. This was after multiple investments and almost a decade in existence. In Q4 of last year it lost $19.4 Million. In all of 2015...it lost $169 million
  • Spotify continues to lose money
Click to expand...
TRUE.. Uber is projected to lose almost $3 BILLION this year
:yeshrug:
 
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Nigerianwonder said:
If 28 million last year is a huge loss then what about Spotify? They posted a loss of 200 million in 2015. Lol
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But Spotify had a net income of almost $2 Billion last year, too. 100 million active users, and 39 million paying subscribers as of last month.

We'll see if Tidal gets there in five more years, I guess.
 
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2015 was the first time Twitter showed a profit it took 10 years 40 quarters billions in investments, 100s of million people to make 7 million bucks in one quarter, and that's Twitter. Most IT startups lose money for years. I don't think you can find a "startup" who can show that they were profitable in their first year.

With that said, I don't know how Tidal will survive. Apple and Spotify will squeeze them until they can buy them. Or a stupid exec at another company with too much money like Samsung or Microsoft will buy it.

DontEemTry said:
They all losin money on streaming services, except maybe Apple who don't need the money. They just need people to keep buying their devices.
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They are losing money in that business area. They have less than half of Spotify's revenue and probably higher costs. Although business infrastructure offices and shyt like that already is in place. But with transfer pricing, they might price all those things to that area.
 
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