When Jay Z bought Swedish music streaming firm, Aspiro, for $56 million in March 2015, their subscriber base was figured into the purchase price.
The business mogul, who later renamed the company Tidal, is now seeking to recoup $15 million from the seller, claiming the subscription numbers were inflated.
“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 an e-mailed statement to Bloomberg. “As a result, we have now served legal notice to parties involved in the sale.”
Despite having exclusive content from artists including Beyonce, Kanye West, Madonna, Nicki Minaj, J. Cole, Daft Punk, Alicia Keys, Jack White and others, Tidal with it's 3 million subscribers still trails it's biggest competitors by a wide margin.
In contrast, Spotify currently has 30 million paid subscribers and Apple Music has more than 11 million.