STOCKHOLM (CelebrityAccess) — Financial filings from TIDAL's holding company Aspiro AB revealed that the streaming music service is awash in red ink.
According to the Wall Street Journal, the company's financial filings revealed that net losses at Aspiro had rocketed to 239 million Swedish kronor ($28 million) last year, almost 4 times their net loss of 88.9 million Swedish kronor in 2014.
Revenue for the company was up in the same time period to 402 million Swedish kronor, an improvement year-over of approximately 30%.
The financial disclosure shows a company that is struggling to pay bills, with short-term debt to suppliers rising by 158 million Swedish kronor last year, from 34.7 million kronor in 2014. As well, the company indicated that it lacked funding for 2016, but added that its board of directors "believes the company will be able to secure new financing."
A source familiar with Aspiro’s finances told the Journal that the financial statement doesn't reflect all U.S. revenue and financing.
The shortfalls highlight the integral struggle of streaming music, monetizing streaming in a profitable way with consumers who are used to free music while appeasing record labels who often demand upfront payment of copyright fees.
Tidal, one of the most recent players to enter the increasingly crowded streaming market in the U.S. is also one of the most expensive for consumers. Tidal's high fidelity streaming subscription will set you back $20 per month, or $10 per month for the streaming quality edition of its 40 million song catalog. – Staff Writers