Jay-Z’s 99 problems now includes losing $28 million on Tidal.
Despite its much-hyped exclusive album releases from Prince, Lil Wayne, Rihanna and Beyonce (Lemonade), the company recorded a net loss of $28 million last year, and $11 million the previous year, according to Yahoo! News.
The rapper and a bevvy of other A-list artists including Alicia Keys, Kanye West and Madonna purchased Tidal for $56 million in March 2015. Everything seemed to be going well as of June, with the company reporting that it had more than 4.2 million subscribers.
Yet Aspiro AB, Tidal’s Norwegian parent company, posted huge losses and allegedly accrued over 100 late payment violations in one year, reported the Daily Mail.
Tidal, which charges $20 a month for premium access and $10 a month for basic membership, has had a hard time competing with the bigger music-streaming services. Currently Apple Music has 17 million paying customers, and Spotify has 30 million subscribers.
The news was initially reported by the Norwegian business daily Dagens Naeringsliv which examined Aspiro’s accounts. Jay-Z and his lawyers have accused Tidal’s previous owners of overstating its paying subscribers before the sale.
It seems as though Tidal might have recently gotten some bailout funds to keep the company from completely defaulting, but it is unclear how much and from whom.
In a financial statement, Aspiro said a board assessment had concluded the company lacked funding for 2016 but added, “The board believes the company will be able to secure new financing.”