Tidal Posted Losses Of $28 Million Last Year
A new legal filing paints a bleak picture at Tidal, the streaming platform acquired by Jay Z in March 2015 and co-owned by a group of high-profile musicians including Beyoncé, Rihanna, Kanye West, and Usher. In 2015 the company lost roughly $28 million, according to the Wall Street Journal, compared with losses of roughly $13.4 million in 2014—before Jay Z took the helm.
While losses nearly doubled, revenues increased by 30 percent to $61 million during that same time period, the Journal reports. This is due to a competitive market and consumers accustomed to accessing music for free, as well as upfront payments demanded by labels. Tidal paid roughly $45 million in royalty fees to record labels last year, according to the Journal.
Tidal, which reported 4.2 million subscribers in June, is still lagging behind industry leader Spotify, which reported that it has 40 million paying members—up from the 30 million that the company claimed in March. (Spotify CEO Daniel Ek tweeted about the accomplishment today, writing, “40 is the new 30. Million”). And though Spotify also posted net losses in 2015, its revenues grew at a faster rate than Tidal’s last year, nearly doubling to $2.19 billion in 2015, according to the Journal.
Do you still have Tidal?