Jay-Z's Tidal losing millions, nearly out of money

Danny Woods
December 16, 2017

A new report from Norway's Dagens Næringsliv claims that Tidal is running out of money while user growth has stalled. Not an entirely convincing statement, but the best we have for now - we've reached out to the company and will update this if we get something more substantial back. Tidal is reportedly still expecting to achieve profitability by the middle of next year.

Jay Z told the media that the service hit the 1 million user milestone in September 2015.

Still, Tidal is not alone when it comes to losing money in the streaming music game.

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's Tidal may be on the verge of sinking. Spotify, for example, lost an estimated $581 million past year against revenue of $3 billion.

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The report comes almost one year after Sprint purchased a 33% stake in the company for $200 million. But music streamers do not seem to care about audio quality as much as price, and Spotify and Apple Music both offer their services for $9.99 per month.

At the time, JAY-Z's business partner Juan Perez reportedly claimed Sprint's investment would give the company "working capital" for the next year to year-and-a-half, according to DN.

The report was put together by the Norwegian website Dagens Næringsliv, and said these were the last months of Tidal.

Since then, West left Tidal and the two have traded legal pleasantries about their future, according to a report from TMZ.

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