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Jay Z’s Tidal music service makes star-studded splash
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Rapper Jay Z bought streaming service Tidal less than three months ago, and while he has reportedly been taking a hands-on role with customer service, it appears there have also been some staff cuts at the same time.
Three weeks after the site’s official launch, Business Insider reports that around 25 people, including CEO Andy Chen, lost their jobs due to “streamlining.”
Tidal announced in a statement that Chen had been replaced by Peter Tonstad, former CEO of Tidal parent company Aspiro Group. Tonstad “has a better understanding of the industry and a clear vision for how the company is looking to change the status quo,” according to the statement.
Meanwhile, Jay Z has been personally calling people who have listened to his music on the streaming service, Tidal executive Vania Schlogel told Business Insider.
“He called some of his fans and one of them made the funniest comment. He said ‘This is the best customer service call I’ve ever received!,'” she told the publication.
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Schlogel said that Tidal shares users’ contact information with musicians so they can make direct contact. Jack White has also used the opportunity to call fans. White’s involvement with Tidal may surprise some observers because the musician is not a fan of digital music.
While Tidal officially rolled out in the United States in late 2014, Jay Z bought the service in January 2015 for $56 million and then launched it in March with a star-studded cast.
The service was initially billed as a premium service, with a single $19.99 subscription fee, but a lower-tier $9.99 for 320Kbps streams was introduced at the launch. Unlike competitors Spotify and others, there is no “free” subscription option.
CNET spoke to the former CEO Andy Chen in December, and he said artists deserved to be paid for their efforts and Tidal’s higher prices reflected this.
“Music should not be free and people should pay,” he said.
Representatives from Tidal did not respond immediately to CNET’s requests for comment.
[Correction] An earlier version of this story incorrectly referred to Tidal’s former CEO as John Chen
