Jay-Z purchased the streaming service in March, there is no free subscription and the service pays the highest percentage in royalties to artists.
CBS News reported that the subscription service, which was originally based in Norway, had been marketed as ‘a moment that will forever change the course of music history’. With the support of high profile artists such as Beyonce and Madonna, the hype for Tidal was on. I mean what could possibly go wrong?
Well Soon after Jay Z took over the company it was announced that CEO Andy Chen was leaving to be replaced by Peter Tonstad, a former CEO of Tidal’s parent company Aspiro Group, as interim chief executive. At the time a company statement said Tonstad ‘has a better understanding of the industry and a clear vision for how the company is looking to change the status quo’.
News of Tonstad’s stepping down was first reported in the Norwegian newspaper Dagens Næringsliv. ‘The only thing I can confirm is that I have resigned,’ Tonstad told the Paper.
Despite its high-profile re-launch, Tidal has been struggling to find a customer base. Last month, company CIO Vania Schlogel told CBSN that Tidal was ‘doing fine’ and had about 800,000 subscribers.
But when you look rival streaming services such as Spotify, which reportedly has 20million paid subscribers, as well as another 55million people who use its free streaming service, Tidal does not compare. Maybe people are put off Tidal because there is no free subscription offer, especially because the majority of people who would use Tidal (students and young people ) don’t have much disposal income. Whereas Spoitfy also have a student subscription offer so you don’t have to listen to adverts every 10 minutes.
‘We are thankful to Peter for stepping in as interim CEO and wish him the best for the future,’ a Tidal official told The Wall Street Journal.
Apple is due to launch their subscription service later this month, hopefully they won’t have CEOs leaving left, right and centre.