9to5 Mac reports today that Tidal, the lossless streaming music service that was launched with great fanfare by a collection of music superstars such as Jay-Z and Rihanna, is losing money and likely to fold next year.
According to the original source of the rumour, Norway’s Dagens Naeringsliv, Tidal lost approximately $44 million last year, and only has enough money to last another 6 months, despite the fact that Sprint has invested $200 million in the company.
However, those million-plus listeners who enjoy the Tidal service will be happy to hear that according to the company itself, reports of its imminent demise are greatly exaggerated. In fact, Tidal says that while it will reach a point of zero capital in 2018, the investment from Sprint, as well as other funding, means that it will bounce back to become profitable halfway through 2018, and will then have enough capital for the next 12-18 months.
“We have experienced negative stories about us since we started and we have done nothing but grow the company year after year,” was Tidal’s response in a statement.
Tidal’s iOS app was updated this month with CarPlay support and iPhone X optimisation.
Image source: TIDAL (@tidal) • Instagram photos and videos
Source: Hi-resolution streaming music service Tidal running out of cash, may close next year