Jay Zs Tidal gikk på en kjempesmell!

Norway's Dagens Naeringsliv has reported Tidal only has enough cash left to run for 6 months. Crap! (if true)

The same Norway-based news outlet has also reported Tidal overstated their subscriber numbers. Crap! (if true)

In an interview with Engadget, a Tidal spokesperson commented, "We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year."

Is that a non-denial denial? Crap! (if true)

Look, I love Tidal and make no bones about it. I want it, forever. I've read much of the negative press that's plagued the company since Jay Z & Co. took over with a grain of salt. To my mind, a fair chunk of it was nothing more than click bait.

Do you remember back in 2014 when Qobuz filed for the French equivalent of Chapter 11? And how they were going to be out of cash within a few months? And how many people said they were through? Done? Caput? As Tom Waits said, "I'm Still here."

Streaming is not an easy business to be in if you want to make money. At present, no one does. How long can this go on? No one knows but here's the thing, I love Tidal and stream music from their service every single day and been doing so for years. You can't take that away from me.

I wish them good fortune.

"Let the beauty of what you love be what you do." Rumi

COMMENTS
DH's picture

My real problem with it is that I love the integration with Roon. Roon says no other streaming company will allow that level of integration into the Roon interface, so they won't partner with them. I understand Roon, hope there will somehow be an alternative if Tidal does go under.

dmhenley's picture

Are a constant in my life. Here's hoping they'll stick around.

Bob Karp's picture

Tidal is SO good it's been keeping me from getting on with encoding my physical media collection! Even so, I DON'T WANT IT TO END. Yikes, it *frightens* me to think of Tidal going under. I listen and enjoy it SO much. I discover so much new music! What to do ... ? I've tried to encourage audio friends who are 'on the fence' about streaming subscriptions to subscribe. Maybe we could help a little. But, yes, running a high-quality streaming music service is certainly not for the faint of heart. It's just very expensive to provide this awesome service that *we* now take very much for granted.

Hey Tidal -- how about appealing to those of us who love you so much? Maybe some discounts for new subscribers who are referred-in by an existing subscriber? Maybe discounts for existing subscribers who refer-in some number of new subscribers? Please try *something*! Please stay afloat.

PAR's picture

It all depends upon what the reported loss of $44M means to Tidal and its shareholders. It could be compared to the previous year's (2015)reported loss of $28M, if I recall correctly.

It is just a bottom line figure and the report gives no context. So if the loss has been made on a like for like comparison to 2015 it may be be thought as bad. However if they had invested, say, $30M on new facilities, staff etc.during the period then the company may see this result as an overall improvement. We just don't know and will have to wait until the period cited as the limit for cash liquidity expires. They will.of course, have the ability to call on further capital from their shareholders.

In regard to Qobuz's situation in 2014, they did indeed file under the French equivalent of Chapter 11. However the fact that the (superb) service continues has to be seen in the context that the company itself did not. In December 2014 the courts were requiring a minimum of 2 serious bids for Qobuz before they were to wind it up. A period of ( I think) six months had already expired with the same requirement but without response. At what appears to be the 11th hour, Xandrie stepped in with an accepted bid and plan for Qobuz and its assets. Therefore the current Qobuz is not run by the same company as originally. Nor have its business plans remained similar as it appears from a statement earlier in the year that they now wish to stay small and are no longer interested in expanding to the USA.

For Tidal the equivalent to the Qobuz situation would be for them to find a new buyer. As Jayzee seems to have been looking for one for the past year+ without success it currently does not seem an easy route for them.

I would refer to the Stereophile interview with Klaus Heymann of Naxos records who closed down his streaming service. Heymann has a long and distinguished history in the music business and when he says that streaming services cannot survive with their current relationship between income and outgoings I respect his view.

Matthew J Poes's picture

I know there has been a lot of bad press, but I really hope this isn't true. There just isn't an alternative on the market right now. Tidal has completely changed how I listen to music today. I honestly feel it has brought back a love for music that I had thought I was losing for a while. After years of not buying new albums and finding little new music to love, I'm suddenly in love all over again. I find things I didn't know existed all the time. I often go on complete musical adventures jumping from one track to the next in eclectic ways that were impossible with my own CD collection.

oldominion's picture

then Roon is worthless to me and I will get rid of it as well. Thank goodness I never sold my CD collection!

Suwoah's picture

I'm not surprised that TIDAL is having trouble since no one is making music in the streaming industry. The alternative service that I use is called Murfie. They have a shop that you can buy flac albums in and also allow you to send your physical music collection in to be digitized so you can play that music right along with your other streaming services. If you like streaming in lossless and also have a large music collection that you want digitized you should check it out!

ednaz's picture

I just decided to subscribe to Tidal to see if it can cut my terrible HD download habit. They offered a six month subscription - pay for 6 months all at once, get a few bucks off each month. Then I remembered this. Any news?

I had a one year trial for Tidal, and while I enjoyed it, I didn't use it much - I was using it through the computer app, or through my studio streamer (and I'm only in the studio a couple days a week, and usually have specific music I want...) Now, doing a Roon trial plus Tidal trial, and damn, the combo, that's the stuff!

So much stuff on Tidal (or any stream service) and I'm most interested in streaming for discovering new stuff, and with Roon that poking around capability is fantastic. (I also listen to Radio Paradise, because it's beautifully programmed, but a good percentage of what I hear is new to me.) Not sure who's got the juice to buy whom, but I think the combo (a big part of what made Apple's store work was iTunes... just saying) would be a great play.

Michael Lavorgna's picture
...and this appears to have been news 'lite'. I think we need to keep in mind the business that Tidal has on the books, including the inclusion of Tidal's service in 2018 Mercedes.

I think your 6 months is money well spent.

ednaz's picture

I worked on several "how to businesses fail" mega studies at various points in time, and two things showed up every time. One was outrunning cash. The other was, outrunning cash was usually caused not by being unsuccessful, but by being so successful that they run out of cash to support the business generated. "Reasonably fast growth" is long term sustainable. Tidal's growth seems to be reasonably fast - not ePets.com or eLuxury.com but a more sustainable rate.

Six months isn't much of a risk. I've done Kickstarters with more financial risk. And really... if it cuts my HD buying by a third... it's a hell of a deal.

Michael Lavorgna's picture
...tapping into Roon/Tidal will mitigate any risk after about a day of streaming. If not less ;-)

Enjoy!

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