JAY-Z’s TIDAL is reportedly having serious financial issues.
TIDAL, JAY-Z’s streaming service, is running out of money, per a report from Norwegian publication Dagens Næringsliv. In spite of a $200 million deal in January with Sprint, in which the communications giant purchased a 33 percent stake in the company, TIDAL reportedly saw a $44 million loss in revenue last year — before taxes. With that, the streaming service company reportedly just has enough capital to last approximately another six months.
A TIDAL spokesperson has, as expetcted, disputed the claims in a statement to Engadget.
“We have experienced negative stories about TIDAL since its inception,” the spokesperson stated. “We have done nothing but grow the business each year.”
In addition to financial issues, there have also been repeated discrepancies regarding the number of TIDAL subscribers. In September 2015, JAY tweeted that TIDAL was sitting at one-million subscribers. However, Dagens Næringsliv discovered disputing information that revealed the number was actually closer to 350,000. Early in 2016, Hov then stated that the company had reached three-million subscribers when, in actuality, it was 850,000.
The iconic MC has not offered any updates on TIDAL’s numbers since then.
JAY’s Watch The Trhone collaborator, Kanye West — who now has a rocky relationship with Hov — ended his contract with TIDAL in July, with claims that the company owes him millions of dollars.