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Former Tidal Executive Confirm Streaming Numbers Were Artificially Inflated

Welp, this is not a good look for Jay Z and friends, it appears that a former Tidal Executive who was head of business intelligence confirm fraudulent streams.

According to Gizmodo:

According to documents obtained by Dagens Naeringsliv, Tidal in late 2015 after Jay-Z purchased, they saw a significant increase in its Denmark and Norway subscriber numbers, growing in the two countries by 170,000 subscribers. However, Dagens Naeringsliv reported that these numbers were artificially inflated according to Arthur Sund, the former head of business intelligence at Tidal, whose team noticed the sleight of hand the following day. Sund said he was frustrated the company was paying out money to labels for subscribers who weren’t even using the service just to show improving subscriber growth. “I deemed it unethical and asked critical questions,” said Arthur Sund when speaking to Dagens Naeringsliv. “But I considered it mostly idiotic to pay the record labels for customers we did not really have.”

“Royalties are calculated using a pro rata model, so the money from subscriptions is put in a massive pot and divided by the percent of streams that an artist accumulates. Simply put, the more streams an artist accumulates the more money they’ll make to the detriment of artists who aren’t able to achieve the same number of streaming numbers.

He was frustrated the company was paying out money to labels for subscribers who weren’t even using the service just to show improving subscriber growth. “I deemed it unethical and asked critical questions,” said Arthur Sund when speaking to Dagens Naeringsliv. “But I considered it mostly idiotic to pay the record labels for customers we did not really have.”

So they were paying labels money they weren’t making just to make it seems like they were making money?

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