Tidal, the high-fidelity music streaming service, may run out of cash in just six months, according to a report.
(CCM) — Tidal, the music streaming service founded by Jay-Z, is facing a cash crunch and may run out of money to provide its service in six months, according to a report on ValueWalk.
Sprint bought a 30% stake in the service at the beginning of 2017, and at the time it was stated that Tidal had enough cash for the next 12-18 months. The company burned through about $44 million before taxes last year, according to the report.
Such losses are not unusual in this market. However, Spotify, the music streaming market leader, lost over $580 million in the same period. A Tidal representative struck a more optimistic note in an interview with The Verge, "We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year," the spokesperson said.
Tidal's selling proposition is that it offers better music streaming quality compared to the likes of Spotify or Apple Music. But music streamers do not seem to care about audio quality as much as price, and Spotify and Apple Music both offer their services for $9.99 per month.
As a result, Spotify and Apple have about 90 million subscribers between them, while Tidal, which does not reveal its subscriber numbers publicly, is widely believed to have less than one million.
Image: © Tidal.