Rapper Jay Z is considered a savvy business mogul, but his Midas touch might not extend to streaming music.
Tidal, the high-fidelity streaming service relaunched with great celebrity fanfare by Jay Z in 2015, once again is the subject of speculation that its financial straits are dire. According to a report in the Norwegian newspaper Dagens Naeringsliv, Tidal lost $44 million before taxes last year and has six months of cash left.
In response to a query from USA TODAY, a Tidal spokesman sent this statement: “We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year.”
Still, Tidal is not alone when it comes to losing money in the streaming music game. Spotify reported that it lost about $581 million in 2016, with revenue of $3 billion, The Verge noted.
Last year, The Wall Street Journalreported that Aspiro, the Swedish-based holding company that controls Tidal, had a loss of $28 million in 2015.