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- #1
Tidal looks more like the red sea….I enjoy using it, let’s hope they start to flourish….
http://www.dailymail.co.uk/news/art...treaming-service-Tidal-posts-huge-losses.html
STOCKHOLM -- In the year rap mogul Jay-Z took control of Tidal, the music-streaming service more than doubled its net loss, burning cash at a rapid rate and testing the depth of its owner's pocket.
Aspiro AB, Tidal's Swedish holding company that Jay Z and a group of other musicians bought in early 2015, recorded a net loss of 239 million Swedish kronor ($28 million) last year, according to a legal filing. That compared with a net loss of 88.9 million Swedish kronor in 2014.
Over the same period, revenue rose 30% to 402 million Swedish kronor from 309 million kronor.
The spill of red ink at Aspiro illustrates the challenge the music-streaming service faces in competing with much-larger rivals such as Spotify AB, Apple Inc.'s Apple Music and Google's parent Alphabet Inc. Despite significant marketing efforts, Tidal is stuck between consumers reluctant to pay for tunes they can easily access for free, and record labels, which often are demanding upfront payment for copyright fees.
Spotify, while also recording a net loss in 2015, expanded much faster than Tidal, doubling its revenue to 1.95 billion euros.
Tidal's parent company had net cash of 35.4 million Swedish kronor at the end of 2015, down from 63.5 million kronor a year earlier. That was despite receiving a cash injection of 93.6 million kronor through a rights issue.
The financial statement, which Aspiro filed with Sweden's company-registration office Bolagsverket, describes a company straining to pay its bills. Short-term debt to suppliers shot up to 158 million Swedish kronor last year, from 34.7 million kronor in 2014, according to the document.
Aspiro and Tidal, as well as a spokeswoman for Jay-Z, didn't return calls and messages seeking comment."
In the financial statement, Aspiro said a board assessment had concluded the company lacked funding for 2016 but added, "The board believes the company will be able to secure new financing."
Aspiro's statement implies the company paid nearly 300 million Swedish kronor in royalty fees to record labels last year, or roughly three quarters of revenue.
The company, which has a workforce of 86, said other costs -- a line that would typically include promotion and marketing expenses -- had risen to 218 million Swedish kronor last year, from 77.2 million kronor in 2014.
In June, Tidal said it has expanded its user base to 4.2 million paying subscribers, many of whom it amassed this year with a string of exclusive releases from artists such as Kanye West, Rihanna and Beyoncé, Jay-Z's wife.
However, that still is far behind its main competitors. Apple Music boasts 17 million paying subscribers, while market leader Spotify has 30 million paying subscribers.
Tidal charges $20-a-month for a high-fidelity version of its 40 million-song catalog and $10 a month for download-quality sound.
http://www.dailymail.co.uk/news/art...treaming-service-Tidal-posts-huge-losses.html
STOCKHOLM -- In the year rap mogul Jay-Z took control of Tidal, the music-streaming service more than doubled its net loss, burning cash at a rapid rate and testing the depth of its owner's pocket.
Aspiro AB, Tidal's Swedish holding company that Jay Z and a group of other musicians bought in early 2015, recorded a net loss of 239 million Swedish kronor ($28 million) last year, according to a legal filing. That compared with a net loss of 88.9 million Swedish kronor in 2014.
Over the same period, revenue rose 30% to 402 million Swedish kronor from 309 million kronor.
The spill of red ink at Aspiro illustrates the challenge the music-streaming service faces in competing with much-larger rivals such as Spotify AB, Apple Inc.'s Apple Music and Google's parent Alphabet Inc. Despite significant marketing efforts, Tidal is stuck between consumers reluctant to pay for tunes they can easily access for free, and record labels, which often are demanding upfront payment for copyright fees.
Spotify, while also recording a net loss in 2015, expanded much faster than Tidal, doubling its revenue to 1.95 billion euros.
Tidal's parent company had net cash of 35.4 million Swedish kronor at the end of 2015, down from 63.5 million kronor a year earlier. That was despite receiving a cash injection of 93.6 million kronor through a rights issue.
The financial statement, which Aspiro filed with Sweden's company-registration office Bolagsverket, describes a company straining to pay its bills. Short-term debt to suppliers shot up to 158 million Swedish kronor last year, from 34.7 million kronor in 2014, according to the document.
Aspiro and Tidal, as well as a spokeswoman for Jay-Z, didn't return calls and messages seeking comment."
In the financial statement, Aspiro said a board assessment had concluded the company lacked funding for 2016 but added, "The board believes the company will be able to secure new financing."
Aspiro's statement implies the company paid nearly 300 million Swedish kronor in royalty fees to record labels last year, or roughly three quarters of revenue.
The company, which has a workforce of 86, said other costs -- a line that would typically include promotion and marketing expenses -- had risen to 218 million Swedish kronor last year, from 77.2 million kronor in 2014.
In June, Tidal said it has expanded its user base to 4.2 million paying subscribers, many of whom it amassed this year with a string of exclusive releases from artists such as Kanye West, Rihanna and Beyoncé, Jay-Z's wife.
However, that still is far behind its main competitors. Apple Music boasts 17 million paying subscribers, while market leader Spotify has 30 million paying subscribers.
Tidal charges $20-a-month for a high-fidelity version of its 40 million-song catalog and $10 a month for download-quality sound.
as Tidal.
