The rapper claims that former owners lied about the amount of users subscribed to the service
Hip Hop artist Jay Z is set to sue the former owners for $15 million over claims that they distorted their subscriber count.
Tidal, relaunched last year in a very cult like fashion with Kanye West, Arcade Fire and DEADMAU5, was bought for $56 million by Jay Z in January of 2015 and has since reached over 3 million subscribers as of this year. However, Jay Z has started a legal battle against previous owners Schibsted with a statement revealing why he has only just now decided to start these proceedings:
It became clear after taking control of Tidal and conducting our own audit that the total number of subscribers was actually well below the 540,000 reported to us by the prior owners.
On the defence’s side, Schibsted have disputed all of the claims made against them, stating that everything was on the table at the time of the acquisition.
We disagree with the accusations in the letter and any potential claims. We would like to point out that the company was listed on the stock exchange with everything that entails regarding transparent financial reporting.
Now that streaming has became the biggest source of U.S. recorded music revenue, more now than ever services like Tidal as well as Apple Music and Spotify are vital in providing the entertainment we enjoy. This isn’t the first time a streaming service has been involved in legal trouble and it certainly won’t be the last.
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