Tidal To Run Out Of Cash In Six Months

2017 has been a rough year for music streaming services. With SoundCloud on the edge of the cliff and rumors that it won’t be profitable until 2020, now it’s the turn for another online music platform to enter into the danger zone. You’ve probably guessed right, we are talking about Tidal.

Bought by american rapper and businessman Jay-Z in 2015, the company has reportedly lost $44 million dollars in 2016 (before taxes), which doesn’t leave a lot of oxygen even after the $200 million deal (33% stake acquisition) made by Sprint in January this year. In spite of some early assumptions that this capital injection would give Tidal enough working capital for the next 12 to 18 months, it all seems to indicate that they only have sufficient funds to last for six more months.

Tidal has not pronounced regarding this matter. More like the opposite, they are still looking quite optimistic for the future of the company. A spokesperson for Tidal has recently told Engadget:

“We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year”

This would not be the first time that Tidal is involved in serious accusations. Just at the beginning of this year, news broke that the norwegian-based music platform was exaggerating its number of subscribers, which led to some real credibility issues. Whether or not the end of the subscription services for Tidal is near, we might be able to find out in the upcoming months.

H/T: Engadget