Online music streaming apps are everywhere these days. While the business was initially the preserve of tech startups like Spotify and Pandora, the growing popularity of such services has meant that tech behemoths like Apple and Google have jumped onto the bandwagon in recent times with their own dedicated music streaming services. Amidst rising competition, it’s getting increasingly difficult with every passing year for smaller independent companies like Tidal to compete against the big boys. That being the case, reports now indicate that Tidal’s financial health is suffering and the company is even struggling to make royalty payments to artists in time. With Samsung now also looking to throw its hat in the music streaming ring, things are likely to only get tougher from here on for companies like Tidal and having to go up against the might of some of the largest multinational giants in the world.
For Tidal, there might be a ray of hope if the latest reports are to be believed. According to the New York Post, Samsung Electronics is looking to acquire the streaming service, and is currently negotiating the terms of the deal with the company. Tidal, for the uninitiated, is currently owned by Hip Hop musician and entrepreneur Jay-Z, who’s previously worked closely with the South Korean tech giant on the marketing of his 2013 album ‘Magna Carta Holy Grail’. Last year, Samsung also reportedly inked a $25 million deal with Jay Z’s music label, Roc Nation, to promote Rihanna’s world tour to promote her latest studio album, ‘Anti’. Rihanna is one of the many popular artistes signed to Roc Nation and the multi-million dollar deal is said to be one of the largest of its kind in the music industry till date.
Either way, both companies have refused to say anything on the latest report, with a Samsung spokesperson being quoted by the NY Post as saying – “It is our policy to not comment on rumors or speculation”. Meanwhile, sources quoted by the publication seem to indicate that Tidal is probably worth around $100 million, which is a far cry from the $250 million claimed by the company’s senior management when the company was launched back in October 2014.