A royalty dispute may cause Jay Z’s music streaming service Tidal to lose one of its flagship artists…who also happens to be his wife.
Bloomberg’s insider sources say that both Sony and Warner have been asking Tidal for huge advances in exchange for the rights to stream their artists’ catalogs.
While Tidal has apparently come to terms with Warner, it seems a deal with Sony has yet to be hammered out — and if Tidal is unable to pay its requested royalties, it could yank its roster from the service, including Beyoncé.
This is just one of the tidbits Bloomberg includes in its feature on Tidal. Among others:
- Tidal was apparently counting on a cash infusion from Sprint to help it pay Sony and Warner’s massive royalty requests but Sprint has specifically said that it has not made a financial investment in Tidal.
- While Tidal says it has 900,000 users, analysts who spoke with Bloomberg “suspect many have signed up for trials and will cancel when they have to start paying.”
The piece concludes by saying it’s still too soon to write off Tidal, but with Spotify and Pandora still going strong and with Apple’s new music streaming service on the horizon, things aren’t exactly looking great right now.
Read Bloomberg’s entire “Tidal” article “That’s Business Man: Why Jay Z’s Tidal Is a Complete Disaster” here.