TIDAL parent lost around $2m a month last year, while seeking extra financing


The financial health of TIDAL has remained a mystery since Jay Z acquired the company as part of a consortium for $56m last year.

But now we have a window into the operating status of the platform… and for those who follow the music streaming business, it’s a familiar story.

According to a filing recently posted with Sweden’s Companies House (Bolagsverket), Aspiro AB – TIDAL’s holding company which was purchased by Jay Z’s Project Panther Bidco last March  –  posted a net loss of 239m SEK ($28m) in the calendar year 2015.

Working out at approximately $2.3m per month, the figure was more than double the 88.9m SEK ($10.5m) net loss it recorded the year before.

Other details revealed in the filing, uncovered by the Wall Street Journal, included Aspiro’s revenue, which jumped 30% to 402m SEK ($47m), from 309m SEK ($36m) in 2014.

For comparison’s sake, Spotify posted revenues in excess of $2bn in 2015 – more than 42 times that of Aspiro – and a net loss of $194m.

Rhapsody, with 3.5m paying subscribers, turned over $202m last year, more than four times that of Aspiro.

Aspiro appears to have paid just under 300m SEK ($35m) in royalties to music rightsholders in the year – eating up the vast majority of its revenue.

Spotify’s payouts to the music industry last year (categorised as ‘royalty, distribution and other costs’) reached $1.83bn.

Jay Z’s arrival certainly had an impact on TIDAL’s expenditure.

Aspiro splashed 218m SEK ($26m) on ‘other costs’ – presumably including marketing – in the 12 months, up 182% on the 77.2m SEK ($9m) spent on the category in 2014.

Aspiro AB finished 2015 with 35.4m SEK ($4m)  in the bank, almost half the 63.5m SEK ($7.5m) it retained at the close of the prior year.

Although Aspiro admitted it lacked funding for 2016, it said in the filing: “The board believes the company will be able to secure new financing.”Music Business Worldwide

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  • creatorsfriend

    Maybe the artist shareholders will stump up the cash to keep Tidal going? Taylor Swift seems to lie splashing it around.And maybe they will then realise how difficult it is to fund a streaming platform when paying out large sums to rights holders. I wonder how much of that finds its way into creators hands?