According to a report from Norway's Dagens Næringsliv newspaper, as reported by Engadget, after losing $44 million before taxes in 2016, Tidal may now only have enough money to stay afloat for six more months.
"This investment, along with other sources of funding, gives the group sufficient working capital for the next 12-18 months", the company wrote in a report signed Juan Perez, according to Dagens Naeringsliv. Spotify, for example, lost an estimated $581 million a year ago against revenue of $3 billion.
Some of its exclusive deals fell apart over time most notably with Prince's estate pushing into other streaming services after his death, and Kanye West terminating his exclusive contract over payment disputes. Tidal is reportedly still expecting to achieve profitability by the middle of next year. In 2015, the Grammy-winning artist said the service had hit 1 million subscribers, but the same Norwegian newspaper claimed it was merely somewhere around 350,000.
JAY-Z's Tidal may be on the verge of sinking.
A 2016 Dagens Næringsliv report also claimed that JAY-Z was inflating user numbers - Tidal said past year it had hit 3 million subscribers, but the newspaper claimed the number was closer to 1 million. Ever since, Tidal has chosen to keep mum about subscriber numbers.
Tidal is a music streaming service, so far the only one that offers high-fidelity streaming, meaning subscribers can listen to uncompressed music formats and hear the songs at optimum quality, provided they have the necessary equipment, like a nice pair of headphones and an audio DAC.
Spotify charges $9.99 a month for Premium, but users can also use the service for free.
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