Jay-Z’s music streaming service Tidal loses its third CEO in 2 years
Music streaming service Tidal owned by Jay-Z has just lost its CEO again for the third time. Tidal is faced with looking again for its newest chief executive officer to command the troubled music streaming service.
Jeffrey Toig, the company’s fourth CEO in two years has just left in March. According to a source, Toig’s departure was cordial. Toig joined Tidal in December 2015 after nearly two years as the chief business officer at SoundCloud. Before that, he was from Muve Music for four years. Muve Music is an on-demand music streaming platform he personally funded. He was the third CEO after the company was bought by Jay-Z back in March 2015 from the parent company Aspiro from Sweden.
Andy Chen left Tidal back in April 2015 and two months before interim CEO Peter Tonstad also left the company.
Bilboard was the first to report Jeffrey Toig’s departure on Friday. They also added that he left Tidal back in March.
A source claimed that Toig’s departure of the company is part of a new phase of the company’s growth under Sprint.
As Jay-Z finished his $56 million acquisition of Aspiro in March of last year, the company has been parting ways with its top executives in its first five months under Jay-Z. Two of these top executives were only temporary CEOs. Many critics are worried about the company lacking traction and the company’s frequent changing of top executives is not a good sign.
“As part of Tidal’s continued expansion this year we will be announcing a new CEO in the coming weeks. We wish former CEO, Jeffrey Toig, all the best in his future endeavors.” Tidal has said in a statement.
Marcelo Claure joined Tidal’s board of directors when Sprint bought it. “We think that if we put our 45 million customers and we work together and we put our assets behind it, we can make Tidal grow substantially.” Claure told shareholders. “We’re going to push Tidal very hard within our customers in the next few months. And I think it’s an inexpensive way to get into the exclusive content and see if it’s able to drive the behavior that we think it might. It’s our first entry into content and we’re going to see where this takes us.” He adds.
Tidal has positioned itself as a service that is pro-artist. However, ever since its re-launch it has had its troubles. In just over four months after the re-launch, there have been departures from the top executives but according to Dr. Todd Green, a professor at the Goodman School of Business at Brock University who is also a music streaming researcher. That wasn’t really the cause of trouble for the company.
“The true criticism of Tidal went back to the launch. They started out on the wrong foot” Green said. He refers to the announcement of Tidal packed with big artists. There were various artists from different genres. Coldplay, Alicia Keys, Usher, Daft Punk, Rihanna, Beyonce and few more joined Jay-Z in announcing Tidal.
The service positioned itself to pay artists double the royalties they would normally be paid for with other streaming services but Green said that the usage of big names may have been the wrong choice.
“They said they would give artists more money, but you have some pretty wealthy people on the stage. Madonna isn’t hurting for cash.” Green said. He added that if Tidal used lesser-known artists who seemed like they actually needed the money, people would be more inclined to support the service.