Tidal, music-streaming service, owned by Jay Z hip hop mogul, may be in trouble and could possibly have financing challenges if its losing trend persists.
Jay-Z purchased the company through his holding group, Project Panther Bidco, for $56 million in March 2015, and ever since, there’s been 107 instances of late payments and a total of 239 million Swedish kronor ($28 million) in losses.
The 2015 net loss was a significant jump-up from 88.9 million Swedish kronor in 2014, according to Norwegian newspaper Dagens Næringsliv.
A financial statement filed by Aspiro AB, Tidal’s Swedish holding company, describes instances of “straining” to pay its bills while short-term debt to suppliers increased to 158 million Swedish kronor in 2015.
Despite a cash injection of 93.6 million kronor, Aspiro AB had cash of 35.4 million Swedish kronor at the end of 2015, down from 63.5 million kronor a year earlier.
Dagens Næringsliv also reports that Tidal owes money to taxi companies, music festivals, record labels, advertising agencies, hotels, and banks.
Tidal since its launch has been struggling to find its feet in a music streaming industry dominated by Spotify AB, Apple Inc.’s Apple Music and Google’s parent Alphabet Inc.
In June, Tidal reported an exopansion of its user base to 4.2 million paying subscribers.
This was helped by several Tidal-owned exclusive album releases from Kanye West, Rihanna and Beyoncé, Jay-Z’s wife.
Copyright 2019 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Follow us on twitter @Thecablestyle