Music

Jay Z Reportedly Sues Former Owners of Tidal as Streaming Music Service Tanks

http://www.tweaktown.com/news/45520/jay-still-struggling-make-tidal-streaming-music-giant/index.html Via Tweaktown.com

Not that long ago, Jay Z decided that he was going to invest $56 million into purchasing a streaming music service. So he bought Tidal and recruited his friends (and wife) to promote it, hoping to compete with the likes the Spotify (and later, Apple Music).

Tidal never took off like Jay Z and his partners hoped, and now they are reportedly sending legal threats (and potentially a full-on lawsuit) to the former owners, Norwegian media company Schibsted. According to Bloomberg, the team at Tidal has sent a letter to Schibsted accusing them of inflating the number of subscribers they had at the time of the sale.

“It became clear after taking control of TIDAL and conducting our own audit that the total number of subscribers was actually well below the 540,000 reported to us by the prior owners,” a Tidal representative wrote in a statement, which was sent to Gawker Media. “As a result, we have now served legal notice to parties involved in the sale.”

Tidal currently boasts roughly three million subscribers, which is certainly a big deal if they are all paying the $10/month fee and not just an inflated number of free trials who signed up to listen to Kanye West’s latest album.

Naturally, Schibsted has denied the claims that they did anything shady.

“We disagree with the accusations in the letter and any potential claims,” a company spokesman told Bloomberg. “We would like to point out that the company was listed on the stock exchange with everything that entails regarding transparent financial reporting.”

Tidal would not confirm that a lawsuit had actually been filed, only saying that they could not comment further “during active legal proceedings.” Sounds like someone is getting sued.

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