Jay-z Files Lawsuit Against Previous Owners OF Popular Music Streaming Service "TIDAL"

Jay-z Files Lawsuit Against Previous Owners Of
 Popular Music Streaming Service "TIDAL" 
BHR Hollywood Reports..........After a year at the helm of the Tidal music streaming service, Jay Z has filed suit against the previous owners of the service saying he was given inflated subscriber numbers.

His legal team also sent a letter to Swedish private equity group Verdane Capital, a co-owner of Aspiro.

The news came just one day after the subscription-based service celebrated its one-year anniversary and an apparent 3 million subscribers.
Rapper Jay-Z

“The growth in our subscriber numbers has been even more phenomenal than we’ve previously shared,” Tidal said in a statement obtained by The News.

“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 continued. “As a result, we have now served legal notice to parties involved in the sale.”

Jay Z announced in February 2015 that he had made a bid for the Tidal and WiMP music services then owned by Aspiro through Project Panther Bidco Ltd., which is indirectly-owned by the musician's S. Carter Enterprises.

 In March 2015, he relaunched Tidal at a celebrity press event in New York City with wife Beyonce and other musicians including Kanye West, Alicia Keys, Madonna, Chris Martin, Nicki Minaj Daft Punk and Usher on hand.

Involved artists reportedly each own 3% equity in Tidal with Jay Z having the remainder. The "artist-owners" list has grown to include Lil Wayne and Damian Marley.

Jay-Z At Tidal Press Conference 
Last week, Tidal announced that it has surpassed 3 million subscribers globally and that it had delivered 250 million streams of Kanye West's The Life of Pablo in the first ten days of its

Among the 3 million members, nearly half (45%) pay $19.95 monthly for Tidal's lossless CD-quality audio. Tidal also offers a $9.95 monthly subscription for high quality audio below that of CD-quality.

Over the past year, Tidal has added music videos as well as live-streaming of nearly four dozen live video events and concerts including a Wednesday performance in Atlanta by 2 Chainz and Lil Wayne (video on demand will land on the service on Thursday).