Jay Z Sues Former TIDAL Owners [Details]
Rucuss staffApril 1, 2016
Jay Z is taking the former owners of TIDAL to court.
Jigga is suing Aspiro, claiming that they presented him with inflated subscription data when he purchased the company last year. Jay is seeking $15 million from the streaming service’s ex-owners, along with its major shareholders, Schibsted Media Group and Verdane Capital.
“It became clear after taking control of TIDAL and conducting our own audit that the total number of subscribers was actually well below the 540,000 reported to us by the prior owners,” TIDAL told USA Today in a statement. “As a result, we have now served legal notice to parties involved in the sale. While we cannot share further comment during active legal proceedings, we’re proud of our success and remain focused on delivering the best experience for artists and fans.”
Schibsted responded to the claim through Norway’s BreakIt, “We want to point out that it was a publicly traded company that was acquired, with what it means by the transparency of financial reporting. Otherwise we have no comments.”
Jay paid $56 million for TIDAL. The streaming service has grown its subscriptions to over three million. This was made possible in large part to Kanye West’s exclusive album The Life of Pablo, which was reportedly streamed 250 million times in its first 10 days of availability through the platform.
Meanwhile, Jay wants to expand TIDAL into a movie streaming service. Page Six reports that Tidal is working with movie-industry executives to create original movies for the streaming service. It wants to compete with Netflix, Amazon Prime, and Hulu. Movies streaming on Tidal could start as soon as June,
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