The music streaming service business has not been playing well for TIDAL with the company posting a net loss of $28 million last year.
TIDAL Music launched last year March touting itself as a artist owned company with the likes of Jay Z, Beyonce, Rihanna, Kanye West West, Usher, Nicki Minaj, Modanna, Alicia Keys, J. Cole and more all have investment in the company. Something tells us that investors have not been happy with the company financial statement so far.
Despite recording a net loss of 239 million Swedish kronor ($28 million), TIDAL also saw its revenue grow to $47 million, up from $36.2 million over the previous year thanks to increase subscription, Wall Street Journal reported. In addition to posting a net loss, TIDAL is also reportedly behind in paying 100 labels royalty fees and has $438,000 in unpaid bills.
The bulk of TIDAL spending was mostly on royalty fees to record labels which account for $35 million of the company’s budget. The company also spent $25.5 million on its workforce which comprised of 86 persons.
Maybe TIDAL will turn around its financial state this year with the company having some big name artists like Kanye West, Rihanna, and Beyonce releasing exclusive albums this year. There are also some rumors that Apple is in talks to buy TIDAL as it seek to strengthen its music streaming service to compete with Spotify, who has the bulk of the market share at the moment. There is no word from either Apple Music or TIDAL on those reports, but Kanye, who has shares in TIDAL is advocating for a buyout. Perhaps Ye is one of those shareholders who don’t want to loose his investment.
Do you think Appl should buy out TIDAL?