People familiar with the matter confirmed that the company has enough funding to last six more months, even though Sprint bought a generous stake in the service earlier this year.
In January, Sprint poured $200 million in the company that Jay Z created. At the time, the management pledged to invest at least $75 million in exclusive content. The fresh financial burst should have given Tidal enough fuel to last for at least 12 more months, experts estimated.
Tidal Unsure How Manny Subscribers It Has
One spokesperson for the company said Tidal had a rocky start and may be over by the time it is expected to hit profitability in mid-2018. The negative stories have reportedly dogged the new music streaming service ever since its creation.
Jay Z told the media that the service hit the 1 million user milestone in September 2015. However, a DN report revealed that that number was greatly exaggerated. The newspaper revealed that the company’s internal payments to its partners shows the service had only 350,000 members.
That didn’t stop Jay Z from saying that the service had 3 million users half a year later, when in fact the real figure stood at 850,000. According to the most recent reports from Tidal, the user base is around 1.2 million people.
If the latest estimates are correct, Tidal is greatly lagging behind Spotify, which boasts 60 million users, and Apple’s music streaming service (30 million).
Image Source: Pixabay