Tuesday, June 23, 2015

CEO of Jay Z’s $56million struggling music-streaming service Tidal quits after just 3 months

jay z
The CEO of Jay Z’s struggling high-definition music streaming service Tidal quit on Tuesday less than three months on the job.

Hip-hop mogul Jay Z purchased the music streaming service in March for $56million and it became a private company. 

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'.

But since the revamped service was unveiled to the public in New York in March, it has struggled to find an audience and has now lost its second CEO. 

Stepping down: Peter Tonstad, the CEO of Jay Z’s Swedish music streaming service Tidal quit on Tuesday less than three months on the job
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. 

Tidal, which promises to give high royalty fees to artists and provide high quality music, has seen a difficult start since its relaunch in the spring.

Tidal has only 770,000 paying subscribers compared to the 20 million Spotify AB has.

Earlier this month Apple came out with Apple Music, a subscription based streaming music service that will be available on June 30.

Swedish news site Breakit reports that around 25 employees were ‘forced to leave’ the company.

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