According to a new report from Norway’s Dagens Næringsliv states that Tidal is running into financial problems. The report claims that Tidal is running out of money and may only have around six months of capital left. To make matters worse, the company’s user growth has stalled.
In a statement to The Jolt Journal, Tidal spokesperson said that “We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year.” Tidal has reportedly list NOK$368 million (about $44 million) last year (before taxes). Comparing this to Spotify, the had $581 million in losses but had around $3 billion in revenue.
It’s worth mentioning that Sprint made a 33 percent stake in Tidal at the beginning of this year. At the time, it gave Tidal “sufficient working capital for the next 12-18 months,” according to DN. Tidal reportedly claims that it soon expects to break even and then start achieving profitability in mid-2018.
Comparing Tidal’s success to its competitors, Spotify has seen more than 60 million subscribers while Apple Music has seen more than 30 million. Tidal continues to attract subscribers and thus continues to struggle financially, even after the investment from Sprint.