Jay Z’s music streaming service, Tidal, lost $28 million past year, according to a legal filing reviewed by The Wall Street Journal.
Advertisement
Tidal’s parent group Aspiro posted a loss of 239.5 million Swedish kronor (25.1 million euros, $28 million) a year ago, according to DN which examined the unlisted company’s accounts.
In 2015, Aspiro lost 239 million Swedish kronor, while in 2014, it lost 88.9 million. As Tidal’s losses accelerated, so did revenue, which rose 30%.
WSJ report that the company has been struck with copyright fees, royalties and so on from record labels, at a cost much higher than that earned from customers paying a monthly usage fee. Since Jay Z shelled out $56 million in March of 2015, the company has been wrought by bad press and strengthening competitors, and reports of a more than doubled net loss won’t be doing any favors to an already dampened public perception.
Tidal is Aspiro’s core holding. That was despite receiving a cash injection of 93.6 million kronor through a rights issue.
Tidal said that, as of June, it had 4.2 million paid subscribers.
However, the company is also reportedly struggling to file its payments on time, with $438,000 of debt still outstanding and lawyers accusing the company of window dressing figures such as its number of paying customers, something the company have denied. Although Spotify has 30 million users, it also posted a net loss previous year.
In a financial statement, Aspiro said a board assessment had concluded the company lacked funding for 2016 but added, “The board believes the company will be able to secure new financing”. Around 300 million Swedish kronor went to royalty fees, out of a total 402 million kronor in revenue.
The company, which has a workforce of 86 people, said other costs-a line that would typically include promotion and marketing expenses-rose to 218 million Swedish kronor a year ago, from 77.2 million kronor in 2014.
Tidal has made a name for itself by way of release strangleholds, bringing exclusive albums to the service which are unable to be found on others.
Advertisement
Tidal charges $20 per month for a high-fidelity version of its 40 million-song catalog and $10 a month for download- quality sound.
