Jay Z Claims Tidal's Former Owners Distorted Subscriber Count

 Jay Z is waging a legal battle against the previous owners of Tidal. The music streaming service has sent a letter to Norwegian media company Schibsted claiming the seller inflated subscriber totals going into their $56 million deal, Bloomberg reports. Citing "active legal proceedings," a Tidal spokesperson declined to comment to Pitchfork beyond a statement confirming the letter. "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," the statement reads. "As a result, we have now served legal notice to parties involved in the sale." Tidal said it has now reached 3 million paying subscribers. 

Schibsted, which last year sold Jay Z the service that became Tidal, denied overstating subscriber numbers. "We disagree with the accusations in the letter and any potential claims," a Schibsted spokesperson told Bloomberg. "We would like to point out that the company was listed on the stock exchange with everything that entails regarding transparent financial reporting."

Page Six, citing "multiple sources," reports that the service will soon also begin offering original movies, citing "multiple sources." Pitchfork has reached out to Tidal for confirmation.

Last year, for the first time, streaming became the biggest source of U.S. recorded music revenue. Paid subscriptions made up the bulk of 2015 U.S. streaming revenue.

Read "Tidal and the Elusive Promise of Streaming Music" on the Pitch.

via Marc Hogan