Despite being owned by one of the most successful music moguls on earth, a new report claims that Tidal is close to going under.
According to Norwegian newspaper Dagens Næringsliv, JAY-Z’s music streaming service is losing tens of millions of dollars a year and could be completely broke within six months. The newspaper claims that since Hova took the helm in 2015, Tidal has bled a whopping $60 million, with $44 million being lost in 2016 alone.
However, a spokesperson for the company said the report is inaccurate and Tidal is actually on track to turn a profit by the middle of next year.
“We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year,” the spokesperson told the New York Daily News in a statement.
The Norwegian newspaper points out that the revelation comes about a year after Sprint purchased a third of the company for $200 million. Juan Perez, JAY-Z’s business partner at the time, reportedly claimed the massive cash infusion would give Tidal “working capital” for the next 12 to 18 months, according to the report.
Tidal has fought an uphill battle from the start, facing off against streaming behemoths Spotify and Apple Music who combined have over 90 million subscribers. Tidal reportedly has between one and three million.