13 September 2016
New reports find that Jay-Z’s Tidal streaming service saw a massive net loss in 2015, despite the rapper’s initial acquisition.
Reports describe that Aspiro AB, Tidal’s Swedish holding company, lost 239 million Swedish kronor, equal to $28 million. Comparatively, Aspiro AB lost approximately 88.9 million Swedish in 2014, less than half the amount. Although Jay-Z acquired the streaming service in early 2015, his name has apparently done little to help the company’s loss.
However, the company’s revenue did increase rise approximately 30% from 402 million Swedish kronor from 309 million kronor within the year, showing Jay-Z’s influence. In addition, fellow streaming service Spotify also saw an increased loss in 2015. The rival music streaming system recorded a net loss 184.5 million euros in 2015, compared with 165.1 million in 2014.
Regardless of the loss, however, Tidal continues to struggle against streaming competition despite Jay-Z’s purchase. Although Tidal brags the promotion of popular artists such as Kanye West, Rihanna, and Beyoncé, Jay-Z’s Tidal fails to grasp a significant number against its competitors. While Tidal boasted 4.2 million subscribers in June, Apple Music recorded 17 million current subscribers with Spotify leading the competition at 39 million.
With the recent announcement, there is no report as to what Tidal will do to try and change their loss. Still, Aspiro reminds its customers that the loss does not paint a clear picture without including total US revenue. Instead, the Swedish company cites a lack of sufficient funding, claiming “The board believes the company will be able to secure new financing.” Aspiro did not comment, however, on Tidal’s continuing failure to pay bills.
Photo Credit: Bloomberg