That didn't stop Jay Z from saying that the service had 3 million users half a year later, when in fact the real figure stood at 850,000. And all this comes after Sprint's $US200 million ($263 million) investment into Tidal in earlier this year. Spotify reported that it lost about $581 million in 2016, with revenue of $3 billion, The Verge noted. According to a report in the Norwegian newspaper Dagens Naeringsliv, Tidal lost $44 million before taxes a year ago and has six months of cash left. Stakeholders have lost about $500 million since Carter purchased TIDAL from its Norwegian owners for about $58 million in 2015.
But there is one huge difference between the two. The reportsuggests that Tidal may only have around six months of working capital left.
Tidal, meanwhile, requires all users to pay, with subscriptions at $9.99 per month. Still, Tidal reportedly claims it's on track to turn a profit in mid-2018.
"We have experienced negative stories about us since we started", a spokesperson said in a statement to United States media, "and we have done nothing but grow the company year after year".
In August, Tidal bagged its fourth CEO in just over two years. Toig, a former SoundCloud exec, had been CEO since January 2016.
Sprint's $75 million fund for exclusive content supported Jay's Grammy-nominated album "4:44", in a similar way to the TIDAL exclusives of Kanye West's "The Life of Pablo" and Beyoncé's "Lemonade".
While the rollouts helped increase the subscriber base, it wasn't a sufficient enough tourniquet to stop Tidal's bleeding, and it didn't get Tidal close to the industry leaders.