It’s been more than a year since music mogul Jay Z took over control of Tidal, the music streaming service he purchased for around $57 million. Reports are surfacing that Beyonce’s husband has filed a lawsuit against the previous Tidal owners claiming that they inflated the numbers of subscribers the service actually had signed up at the time Jay Z purchased it, according to a March 31 report from USA Today.
Named in what’s being referred to as a giant lawsuit is the company Aspiro based out of Scandinavia and its major shareholders, the Schibsted Media Group and Verdane Capital. Reportedly, the lawsuit is seeking $17 million.
“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 company said in a statement sent to USA TODAY. “As a result, we have now served legal notice to parties involved in the sale. While we cannot share further comment during active legal proceedings, we’re proud of our success and remain focused on delivering the best experience for artists and fans.”
Responding to news over the lawsuit, a spokesperson for Schibsted Media was quoted by BreakIt News out of Norway as saying “we want to point out that it was a publicly traded company that was acquired, with what it means by the transparency of financial reporting. Otherwise we have no comments.” And whether or not those original subscriber numbers were indeed exaggerated by the former owners, Tidal seems to be doing fairly well after its first full year with Jay Z at the helm.
Variety reports that according to Tidal, the music streaming service is now boasting more than three million subscribers worldwide. Since Jay Z took over the company, Tidal has added music videos for streaming as well as live streaming of concerts and a variety of musical and non-musical events. A Tidal video on demand service was scheduled to launch today.