TIDAL Going Bankrupt, Suffers a $28 Million Loss

TIDAL’s financial statements for the year 2015 were not commendable with the company reporting a net loss of $28 million.

The music streaming service launched last year March branding itself as a artist owned company with the likes of Jay Z, Beyonce, Rihanna, Kanye West,  Nicki Minaj, Usher, Alicia Keys, J. Cole, Madonna and more all having shares in the company.

According to Wall Street Journal, even though TIDAL has seen a net loss of $28 Million, the music streaming service revenue has grown to $47 million, up from $36.2 million over the past year which resulted from an increase in member subscriptions.

Majority of TIDAL’s expenditure was on royalty fees which accounted for $35 million of the company’s budget and it is reported that the company is still in arrears in paying royalty fees to various labels and also has $438,000 in unpaid bills.

It’s not quite over for TIDAL, perhaps they can recover from their financial woes since a few of their renowned artistes like Beyonce, Rihanna and Kanye West will be releasing exclusive albums this year.

Rumours have also been swirling that Apple will purchase TIDAL since they would like to reinforce their music streaming service to compete with Spotify who is currently dominating the music streaming business. Neither Apple nor TIDAL have addressed these rumours but Kanye West who is a shareholder of TIDAL is in favor of a buyout since he is not trying to go further in debt by losing his investment.

Related:Apple in talks to acquire Jay Z’s Tidal