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Tidal might have experienced huge financial losses
BEACON TRANSCRIPT – If you are a fan of the music streaming service Tidal, take advantage of it, as these might be its last days. According to a report developed by a Norwegian website, the platform has great financial issues, and might have enough money left only to survive for six months. But is this actually true?
Tidal might have lost a huge amount of money
The report was put together by the Norwegian website Dagens Næringsliv, and said these were the last months of Tidal. However, the company strongly denies these claims. It says that dozens of negative rumors have arisen about the platform as soon as it was first established, but the only thing they did was increase their profit every month.
According to the report, Tidal suffered a loss of $44 million in taxes only in 2016. Even if it sounds like a lot, such a loss is almost nothing compared to those of Spotify. The main difference here is the revenue achieved by Spotify. For losses of $581 million, it recorded earnings of $3 billion.
It’s still not clear what’s the future of Jay-Z’s music platform
However, the negative news on Tidal are contradictory with the actual facts. In January, Sprint bought 33 percent of the platform for $200 million. This should have been enough for it to last for 12 to 18 months. Also, according to the owner of the platform, Jay-Z, it kept growing rapidly over the past few years.
In 2015, Jay-Z claimed Tidal hit the 1 million subscriber milestone. At the same time, the Norwegian publication said the real number was 350,000. After six months, he claimed to have increased to 3 million, when it was actually 850,000. Since then, the company made sure it wouldn’t reveal any number of subscribers, so the Norwegian site might be right, after all. Since the market is full of successful music streaming platforms, it’s difficult to earn the supremacy in this field.
Image Source: Wikimedia Commons
