SoftBank famously took a stake in Jay-Z’s high-bitrate streaming music service and was able to snag an exclusive album release and free service for its customers on Sprint. Beyond the perks, though, that money may be drying up fast for TIDAL come the summer of next year.
Dagens Næringsliv reports that Shawn Carter’s company lost 368 million kr or about $44 million pre-tax in the past year, double the losses of the previous year. Stakeholders have lost about $500 million since Carter purchased TIDAL from its Norwegian owners for about $58 million in 2015.
TIDAL claims that it expects to run out of cash in 2018, but will be profitable.
“We have experienced negative stories about us since we started,” a spokesperson said in a statement to US media, “and we have done nothing but grow the company year after year.”
The company is working on loans from Cayman Islands firm totaling $105 million while Sprint’s $600 million infusion in January is supposed to give TIDAL running room for up to 18 months.
The service has struggling to retain subscribers as Spotify and Apple Music have experienced monthly growth rates in the millions. TIDAL, which has not publicized its membership numbers in 18 months, is expected to lose up to 100,000 customers as Norwegian telco Telenor ends a partnership.