Even though Jay-Z thought his $19.99/month version of Spotify would be the go-to platform for music and sound snobs everywhere, most people viewed it as a pain in the ass that drove people to re-download Kazaa in order to get a new Beyoncé album, since it kept all the good shit to itself. That mindset has apparently driven it to the poor house, since Tidal is allegedly months away from going bust.
Norwegian paper DN (via Engadget) says Tidal lost $44 million in pre-tax income last year, and it only has enough cash to last six months. This is causing a lot of head scratching, since Sprint bought a 33% stake in the company for $200 million. Roc Nation Sports president (and Jay’s business partner) Juan Perez claims that should’ve kept Tidal afloat for 12-18 months. So something doesn’t smell right. Someone go check Yoncé’s Instagram and see if she’s rocking any new bling, because this sounds like some Jim and Tammy Faye Bakker-style of accounting.
Tidal issued an official clap back, saying this is all fake news:
“We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year.”
The company then explained it would break even in 2018, which some may see as their way of covering after DN implied Jay was a liar, liar, pants on fire when he went to Sprint with his alleged 1 million subscribers. DN says in reality, the number was more like 350,000. A few months after the Sprint investment, Jay said it had leapfrogged to three million subscribers. But DN said they could only figure it close to 850,000. Even Tidal was scratching their head about Jay’s estimates; the company’s internal figures only had the subscriber count at 1.2 million. It sounds like if Jay wants to make a little extra money, he’d be a shoo-in for a job counting crowds at the next Trump rally.