Jay Z's music streaming service has been hit with a tidal wave of debt, according to a new report.
Tidal, the rapper's service, has apparently struggled to make payments, as well.
Tidal's parent group Aspiro, a Swedish company, had a loss of $28 million last year, according to the Norwegian business daily Dagens Naeringsliv. While one could argue that technically Tidal isn't severely in the red (as Aspiro is the parent company in question,) Tidal is the Aspiro's core holding.
The newspaper said, via the Daily Mail, Tidal received about 100 payment default records since Jay-Z purchased the company through his holding group, Project Panther Bidco, for a reported $56 million in March 2015. In addition, it reportedly has about $438,000 due in outstanding payments.
Jay Z's team have long said problems existed before Hova took over the company, saying the former owners exaggerated the number of paying customers it actually had.
After the rapper/mogul purchased Tidal, it was surrounded by much fanfare and it exclusively released albums by Rihanna and Kanye West. Earlier this year, the service got a huge boost when Jay Z's wife, Beyonce, released her "Lemonade" album via Tidal.
It was also where, naturally, Jay Z responded to "Lemonade," as many felt it told the tale of his wife getting over infidelity, a claim that has never been confirmed.
"You know you made it when the fact / Your marriage made it is worth millions/ Lemonade is a popular drink and it still is," Jay raps on a remix of Fat Joe's "All the Way Up," which was also a Tidal exclusive.
While official figures are yet to be released, Daily Mail said it was estimated Beyonce's album added about 1.2 million new customers, which would mean the streaming service caters to about 4.2 million people.
It still lags drastically behind the market leaders for streaming, Spotify and Apple Music, which have 30 million users and 11 million user, respectively.
Recently, there were reports that said Apple was in talks to possibly purchase Tidal to try to close the gap with Spotify.
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