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Jay Z's Tidal Music Streaming Service Is Fraudulently Inflating Subscriber Numbers, Report Says (digitalmusicnews.com)

A new report published by Markus Tobiassen and Kjetil Saeter of Norwegian publication Dagens Naeringsliv is accusing Jay Z's Tidal music streaming service of fabricating their subscriber numbers by creating fake accounts and lying to the media and partners. The company claims to have more than 3 million paying subscribers with more than half of those paying $20-a-month. Digital News Music reports: Tobiassen and Saeter interviewed staffers at TIDAL, as well as partners and confidential sources. And the information that came back was pretty damning. "When 16 of the world's biggest pop stars, one a convicted cocaine smuggler and a former Israeli intelligence officer was not able to obtain enough customers to Jay Z's Tidal, the company began to inflate subscription numbers," the report alleges. DMN spoke this morning with Tobiassen, who offered a translation of the report. "On March 30th of last year, Tidal issued a press release stating that the company had reached 'three million members,'" the report states. "The news story reported worldwide was that Tidal had three million paying subscribers. Tidal also specified to online newspaper The Verge that this figure did not include trial subscribers. This was the last time Tidal reported a total number of subscribers to the public." The only problem with that? "In April 2016, one month after the press release issued by the company claiming three million members, Tidal made payments to the record labels for around 850,000 subscribers. The figure reported internally by Tidal in April is 1.2 million subscribers." The report further states that Tidal itself reported a figure of 1.1 million to the major record labels in late 2016. In other words, nowhere near the numbers reported to media outlets like Digital Music News and Verge.

32 comments

  1. common procedure by turkeydance · · Score: 1

    common practice

    1. Re:common procedure by Anonymous Coward · · Score: 0

      The best way to eventually be successful is to already "appear" to be successful... Ask the new P(E)OTUS... (E if you are one of the ones calling him President Electoral, let alone the golden 'praise' showering him.)

    2. Re:common procedure by Anonymous Coward · · Score: 0

      LOL, just how many people did /pol/ scam on that one?

    3. Re: common procedure by Anonymous Coward · · Score: 0

      No. E is for Ex-President. I will always refer to any past president as President. President Nixon. President Kennedy. President Bush, Clinton, Obama, Reagan etc. But Trump will always and forever be either future Ex-President or Ex-President Donnie.

    4. Re:common procedure by Anonymous Coward · · Score: 0

      u shocked the 3-peicemeal come wit two free sides too?

    5. Re: common procedure by Anonymous Coward · · Score: 0

      i didnt know Franky Avalon had a sister!

      (@$!# wahh...wahhhh...wahhhhhhh)

    6. Re: common procedure by Anonymous Coward · · Score: 0

      Aww my little snowflake. You are so precious!

    7. Re:common procedure by Anonymous Coward · · Score: 0

      I'm sure Netflix does the same...

  2. Kayne West is insane by Anonymous Coward · · Score: 2, Insightful

    And even he had the sense to get his music off Tidal.

    1. Re:Kayne West is insane by Anonymous Coward · · Score: 0

      Both Kanye and Jayz are worthless nigerrzz.
      And you paid them money.
      Largely to talk about them stealing both your money and your girl.
      Morons.

  3. Goodness me, I'm getting the vapors! by Anonymous Coward · · Score: 1

    An untruth being uttered in the music business?! Fetch my fainting couch!

  4. He's a man of uncommon taste by Anonymous Coward · · Score: 0

    Jay Z strikes me as a man of uncommon taste. I mean, how else do you explain Jay Z & Abramovic?

    1. Re: He's a man of uncommon taste by Anonymous Coward · · Score: 0

      This

  5. who cares about the media by known_coward_69 · · Score: 1

    as long as their investors and the labels have the right numbers they can report any number they want to the media and it will be perfectly legal

    1. Re:who cares about the media by Aighearach · · Score: 2

      Well, if they've admitted to the labels that they lied to the media, then that might be true, though it also might be an unfair business practice that their competitors could challenge.

      But if they made a public claim of 3m and then simply only paid for 1m, then the labels can at least force them to prove they're not withholding license fees. They might have to give the labels full access to their books in order to resolve this, they might even have to pay for an outside auditor to avoid being on the hook for 3m subscriptions.

      If they disclosed the discrepancy to the labels at the time, then they're probably fine on that side. But keep in mind that the labels are also competitors. These are frenemies as much as partners.

    2. Re:who cares about the media by Anonymous Coward · · Score: 0

      Maybe they told the truth to the media and lied to the labels to pay them less royalties.

      Also you're an idiot college student who thinks all lowercase and no punctuation is a "style" of writing when in reality you're just a lazy asshole who can't be bothered to give a shit about your audience. Well guess what asshole, if you don't give a shit about your audience, why bother writing anything at all. Just to hear yourself whine?

    3. Re:who cares about the media by Anonymous Coward · · Score: 0

      Or... they have 3million people signed up and paying, but most are not using the service, while still being charged for it. Artists are only paid for what people listen too, unless you are also owner of the company.

  6. 3 million subs by Anonymous Coward · · Score: 0

    I'd be surprised if 3 million people have even heard of the service at all...

  7. Imagine that. by rmdingler · · Score: 1
    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  8. Hustler don't stop hustlin by Chewbacon · · Score: 1

    See subject.

    --
    Chewbacon
    The Bible is like Wikipedia: written by a bunch of people and verifiable by questionable sources.
  9. I got 3 million problems and a bitch ain't one by Anonymous Coward · · Score: 1

    "But at this point I'd take bitch problems if the other problems disappear ...."
    "Damn, tidal be bleed'n money right out the rear"
    "Fans be so fickle it somth'n to fear"
    "Kanye ev'n left, and we been BFF for over one year"
    " nigga didn't even shed so much as one tear"
    that is the start of the lyrics for ur new song Jay Z. That's the great benefit to being a rap singer - just sing about your problems and if it's a hit, hey, no more problems!

  10. News at 11 by Notabadguy · · Score: 1

    Dear Slashdot editors:

    If you keep making a story for every "A company lied" instance, the front page will be non-stop company lying spam and there will be no news for nerds. Or things that matter.

    This is neither. Note the absence of comments as people continue to care less about stories like this.

    1. Re:News at 11 by c · · Score: 1

      If you keep making a story for every "A company lied" instance, the front page will be non-stop company lying spam and there will be no news for nerds. Or things that matter.

      Yeah, but this is really more of one of those extremely rare "music company screws someone over" stories, which...

      Oh. Right. Pardon me. Carry on.

      --
      Log in or piss off.
  11. what !! by Anonymous Coward · · Score: 0

    An American (c)rapper lie !!
    Never..

  12. all dem fishstix mang by Anonymous Coward · · Score: 0

    hope he doesnt turn into a California Sheepshead over it.

  13. The 3M is correct by Anonymous Coward · · Score: 0

    The 3 million number could be correct, and the 0.8 million reported to the large record labels could be false.
    And the large record labels can't really complain, since they would report something like 0.2 million to the managers of artists, who would then report 0.1 million to the artists. Everybody pockets the difference if made up numbers can't be checked.

    1. Re: The 3M is correct by Anonymous Coward · · Score: 0

      Marketing drone: hey bossman, I made the company 2 million dollars this week

      Boss: I only see 1m on the books. where's the rest of the money?

      MD: I said I made the company 2 million dollars. I didn't say how much it cost me to do it.

  14. Just stop with the Apple Music, Google Play, Tidal by Anonymous Coward · · Score: 0

    and accept that Spotify has won the online streaming music war. Your horses will not win this race, period.

  15. /.is tech-FUCKEDCOMPANYdotCOM by Anonymous Coward · · Score: 0

    i could see a critic of employee loungerooms consolidated in Slashdot who, working with /. editors, divest tech company secrets here to threaten their employers to proofread the anonymous disclosure to a ratio of money payed to delay the inevitable article from appearing on Slashdot. bwahaha! The story will come out eventually, but pay Slashdot a Reverse Firehose Fee that goes to a tech Institution training club for the employees and officers swindled or cheated from their tech job: like Wikileaks but pro-active to catch the problem and nurture a charity of itself so nobody hits rock bottom. Any fag can do the Wikileaks astroturf, but with a name like Slashdot it sounds like a surgeon entering a warzone on a mission as a ninja to do traffic sign waiving. Which is better than Wikileaks trying to depression-bomb countries.