Rap mogul Jay-Z has sued the original owners of his Tidal streaming service for allegedly inflating subscriber figures, in the latest twist to the company's uneven relaunch.
Jay-Z last year bought Tidal from Aspiro, a tech company based in Norway and listed in Sweden, for 464 million Swedish kronor ($56 million) as he sought to enter the fast-growing streaming sector and challenge leader Spotify.
"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," Tidal said in a statement Thursday.
"As a result, we have now served legal notice to parties involved in the sale," it said, declining further details due to the litigation.
The lawsuit was first reported by the Norwegian business newspaper Dagens Naeringsliv, which said that Jay-Z's business arm Project Panther Bidco sent a notice to several Aspiro board members.
It quoted a representative for one of the stakeholders, Norwegian media group Schibsted, as denying the allegations and saying that Aspiro presented accurate and transparent data.
Tidal described the allegedly inflated Aspiro data as a new sign of success for the service, which announced Tuesday, on the anniversary of Jay-Z's relaunch, that it had three million subscribers.
"The growth in our subscriber numbers has been even more phenomenal than we've previously shared," the statement said.
Aspiro, which still runs the WiMP streaming service available in five European countries, has focused on high-end audio, with Tidal using Flac files that are more data-intensive than those used by most rivals.
In its relaunch by Jay-Z, Tidal has cast itself as a streaming service geared toward artists and has since distinguished itself by providing exclusives as well as original video content.
But last year's announcement was widely derided for its optics, with some of the richest names in music such as Madonna and Kanye West named as shareholders and appearing at a news conference to spread the message that artists need better payment.
Sweden-based Spotify, whose compensation structure has been criticized by some artists, remains by far the streaming leader, recently saying it had 30 million paying subscribers.
It is followed by Apple Music, which was launched in June as the tech giant saw a future in streaming and has quickly grown to 11 million subscribers.
Paris-based Deezer says it has six million paying subscribers but many are inactive and come through bundles with telecom operators, which are points of ambiguity in determining services' numbers.
AFP RELAXNEWS
Fri Apr 01 2016
Artist Jay-Z, one of the owners of music streaming service TIDAL. - File Photo
ANALYSIS - Australia legislated a teen social media ban, it has to figure out how to enforce it
The study, will likely set course for lawmakers and tech platforms around the world as they navigate a push to age-restrict social media.
Will the fragile peace between Hezbollah and Israel hold?
Hezbollah continues to claim that it defeated the Israeli military in Lebanon and says its forces will ensure IDF adheres to the ceasefire.
Robotic-assisted prostate cancer surgery, a quick recovery option
Prostate cancer is experienced by one in 120 men in Malaysia, especially those above the age of 50.
Astro AWANI shines with five wins at MPRA 2024
Astro AWANI excels after winning five awards at the Malaysia Public Relations Awards 2024 in Kuala Lumpur
Flood situation continues to worsen, victims exceed 120,000
The flood situation across the country continues to worsen, with the number of victims in nine states reaching 120,272 people
Starbucks serves South Koreans coffee and glimpse into the North
Hundreds show up for the opening of the US coffeehouse chain's newest store in an observatory near the city of Gimpo.
Big tech says Australia "rushed" social media ban for youths under 16
A trial of methods to enforce it will start in January with the ban to take effect by Nov. 2025.
Putin denies he tried to frighten Merkel with dog Koni
Angela Merkel wrote in her new memoir "Freedom" that, Vladimir Putin sometimes brought the pet to meetings with foreign guests.
Vocational college student murder: We saw victim beaten in hostel room - Witness
The prosecution witnesses say they did not report the incident to the hostel warden for fear of being beaten like the victim.
Don't bring small children to observe river water level, say - Police
State police chief Datuk Mohd Yusoff Mamat urges the public to remain vigilant about the rising level of the river.
Unreasonable for Syed Saddiq to claim ignorance over withdrawal of RM1 mil from Armada account
Judge Datuk Azhar Abdul Hamid says the Muar MP's testimony that he had no knowledge of the storage or use of the funds defied logic.
British lawmakers prepare to vote on assisted dying
The "Terminally Ill Adults (End of Life)" bill would allow terminally ill adults, the right to choose to end their lives with medical help.
Several roads in Tanah Merah closed to all traffic
Police say road users should not take the risk of crossing flooded roads to continue their journey to avoid any unwanted incidents.
Not all flooded areas are caused by ECRL - MRL
Malaysia Rail Link Sdn Bhd says immediate mitigation measures will be implemented to reduce the risk of flooding.
Flood: KPKM activates disaster operation room, to assist affected groups
KPKM says it has activated its Disaster Operations Room at the district and state levels is monitoring the weather conditions.
'I will still use it' vows youth, as Australia's under-16 social media ban sparks anger and relief
Children, meanwhile, says they would try to find a way around the ban.
Putin says Russia would use all weapons at its disposal if Ukraine got nuclear weapons
Vladimir Putin says that Russia would use all weapons at its disposal against Ukraine if Kyiv were to acquire nuclear arms.
Floods: No evacuation of victims in Sepang district, JBPM monitoring hotspots
Razif Mohmad Haris says his department received several calls this morning but no evacuations were carried out after an assessment was made.
Israel and Hezbollah trade accusations of ceasefire violations
Israel and Lebanon accuse each other of breaching a ceasefire that aims to halt over a year of fighting.
Floods: New relief centre in Mengkebang provides much-needed shelter for victims
The relief centre provides relief for residents affected by the floods, sparing them the trouble of finding shelter elsewhere.