The new music streaming service owned by Jay-Z loses Peter Tonstad as a CEO after booting the first one, Andy Chen, earlier this year.
- Jun 24, 2015
AceShowbiz - Another CEO has left Jay-Z's Tidal. Peter Tonstad, a former CEO of Tidal's parent company Aspiro Group, departs after serving as an interim CEO of the streaming service for around three months. He joined the company in April after the first CEO, Andy Chen, left.
"We are thankful to Peter for stepping in as interim CEO and wish him the best for the future," said a representative for Tidal in a statement. "Tidal will be transitioning to a permanent CEO as part of our strategic plan to create a leading platform."
It's unclear why Tonstad left. He was reportedly let go by the company but a conflicting report suggested he's the one who quit the job. He allegedly told Norwegian news site Dagens Naeringsliv, "The only thing I can confirm is that I have resigned." According to The Wall Street Journal, Tidal will be run by executives in New York and Oslo until a new chief is in place.
Tidal was bought by Jay-Z for more than $50 million. A number of A-list artists like Madonna, Alicia Keys, Kanye West, Rihanna, and Beyonce Knowles have since become the co-owners. However, the streaming service is criticized for its pricey fee and no free option.
Jay-Z has repeatedly defended the company. "Tidal is doing just fine," he once tweeted. "We have over 770,000 subs. We have been in business less than one month. #TidalFacts" He blamed the negative publicities on the "smear campaign" by rival companies.
Competition mounts as Apple plans to launch their own streaming service on June 30. In the meantime, Spotify seems to continue dominating the business with over 60 million users including 20 million paying subscribers.
