When Tidal launched, one of the ways it set itself apart from the competition was that they offered listeners supposed audiophile grade music, although it came at a rather steep cost, a cost that might have set them back in the game because according to a report from Norwegian publication Dagens Naeringsliv, Tidal is running out of money.
The report claims that Tidal apparently only has 6 months left of working capital, which means that the music service only has 6 months left of staying afloat, unless they are able to raise more money. However in a statement to The Verge, a company spokesperson is refuting those allegations by saying, “We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year.”
This seems to go against the report which states that Tidal apparently lost as much as $44 million before taxes last year, although the company seems to believe that they will be able to break even and possibly even achieve profitability mid-2018. That being said, it’s not hard to believe that Tidal (or any other music streaming service) could be doing badly.
Last month Apple Music boss Jimmy Iovine claimed that the music streaming industry isn’t making any money, and that companies like Apple, Google, and Amazon at the very least have other products to help prop up the service, whereas music-only services such as Spotify and Tidal don’t. In any case take the report with a grain of salt for now, but maybe don’t discount Tidal just yet.
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