Tidal Investigating 'Potential Data Breach' After Reports of Late Royalty Payments and Inflated Streams

Discussion in 'iOS Blog Discussion' started by MacRumors, May 18, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    A few days after Norwegian news site Dagens Næringsliv accused subscription music service Tidal of being months behind on royalty payments, as well as falsifying and inflating streaming numbers, Music Business Worldwide now reports that Tidal has learned of a "potential data breach" on its platform.

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    Tidal CEO Richard Sanders said in a statement that when the company learned of the potential data breach it "immediately" began trying to uncover the source, while also reporting it to authorities and taking "proactive" steps to strengthen the service's security. Tidal's measures in the wake of the discovery also include hiring an "independent, third party cyber-security firm" to find out what happened.
    Since so little is known about the potential data breach, it's unclear how widespread it might have been and what aspects of Tidal users' data could have been compromised. Sanders mentioned that the company looks forward to sharing the results of the security firm's discoveries with its employees and partners "once completed."

    Dagens Næringsliv's report earlier this week called out Tidal for being months behind on its royalty payments to record labels, after it previously said in December that the streaming company was facing money problems and would run out of working capital within six months. Additionally, the site investigated Tidal and claimed the company has been inflating streaming numbers, particularly those related to Kanye West's The Life of Pablo album and Beyonce's Lemonade album.

    Sanders commented on those claims today, leading into the company's potential data breach discovery:
    Tidal is one of the streaming music rivals to Apple Music, offering both a $9.99/month standard sound quality tier and a $19.99/month High Fidelity tier. At one point rumors swirled around Apple's potential acquisition of Tidal, but the Cupertino company eventually ended those rumors and in early 2017 Sprint bought a 33 percent stake in Jay Z's streaming music service.

    Article Link: Tidal Investigating 'Potential Data Breach' After Reports of Late Royalty Payments and Inflated Streams
     
  2. nburwell macrumors 601

    nburwell

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    Could this be the nail in the coffin? RIP Tidal
     
  3. dmylrea macrumors 68030

    dmylrea

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    With Sprint's stake in Tidal, and with T-Mobile swallowing up Sprint, could Legere have something up his sleeve with regards to making something of Tidal?
     
  4. rolsskk macrumors 6502

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    Problems? What problems? Hey, what's that? Look over there!!
     
  5. whyamihere macrumors 6502

    whyamihere

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    #5
    Condolences to all 10 of their users.
     
  6. iansilv macrumors 65816

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    If Apple Music only supported MQA I wouldn’t care about tidal...
     
  7. Smartass macrumors 65816

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    Possibly inflated number of streams to Kanye and Beyonce(who are also Tidal owners) to get out as much money as possible until it all goes to hell? ;)
     
  8. OldSchoolMacGuy Suspended

    OldSchoolMacGuy

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    Seems trying to distract people from one problem with a potentially far bigger one (and one that'll lose you far more customers) isn't a smart move.

    While we certainly see many try to distract from problems, generally they don't do it by creating a far bigger problem. The potential that they haven't paid royalties recently is an issue and got some bad press. A data breach will get them FAR more bad press.
     
  9. 4jasontv macrumors 65816

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    The issue isn’t that they lied to investors or are selling other people’s work while knowing they can’t actually pay them.

    The real issue is that people know.
     
  10. rolsskk macrumors 6502

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    I doubt it as data breaches are commonplace these days that people just shrug it off, I mean just look at the credit bureau breaches. Probably the most egregious breach out there, but where's the outrage over that? Crickets. But when you fail to pay the bills, that grabs people's attention and brings thigns to a screeching halt.
     
  11. canadianreader macrumors 6502

    canadianreader

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    Typical defensive strategy when you have no arguments.
     
  12. OldSchoolMacGuy Suspended

    OldSchoolMacGuy

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    The press on their failure to pay had passed with little of it. There was no need to create a distraction. At the end of the day, it means nothing to people using the service as long as the music keeps playing. I'm sure most users are completely unaware of that piece.
     
  13. nburwell macrumors 601

    nburwell

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    Very interesting point that you bring up (if regulators approve the merger). I always figured that Tidal would be bought by Spotify or Apple Music. But if the Sprint/T-Mobile merger is approved, I'd be interested to see what Legere does with it.
     
  14. Kabeyun macrumors 68000

    Kabeyun

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    #14
    “That information is completely false! Now how’d they steal it from us?!”
     
  15. cube macrumors Pentium

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    MQA not needed.
     
  16. WeemanWise macrumors 6502

    WeemanWise

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    I hope that cyber security firm asked to be paid up front.
     
  17. thisisnotmyname macrumors 68000

    thisisnotmyname

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    #17
    Jay-Z, Beyonce, Kanye, Madonna, both members of Daft Punk. Who are the other five? You may have over counted :p
     
  18. Will.O.Bie macrumors 6502

    Will.O.Bie

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    What does a data breach have anything to do with allegedly not paying royalties? Hackers siphoning out money from their service? o_O

    Richard Sanders is just as cuckoo as Kanye himself...
     
  19. thisisnotmyname macrumors 68000

    thisisnotmyname

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    Unless the distraction is to avoid fraud and jail time. I'll put my tinfoil hat back on now :)
     
  20. thadoggfather macrumors G4

    thadoggfather

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    #20
    Tidal is going through a tidal wave rn

    Love it!
     
  21. EBone12355 macrumors member

    EBone12355

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    #21
    The real issue will be when all the artists except for Jay Z, Kanye, and Beyonce pull their music because they aren’t getting paid.

    No wonder that idiot Kanye has been running around trying to get a meeting with Tim Cook.
     
  22. OldSchoolMacGuy Suspended

    OldSchoolMacGuy

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    I think Justin Timberlake has a good sized share too, along with a couple other artists.
     
  23. jshin100 macrumors member

    jshin100

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    #23
    Uh, all I know is that the new Beyonce x JAYZ album better be on Apple Music lol
     
  24. Braderunner macrumors 6502a

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    #24
    I was going to say, did they notify both customers? :D
     
  25. Googlyhead macrumors 6502

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    #25
    I have enough fingers for this:
    1 - Jay-Z,
    2 - Beyonce,
    3 - Kanye,
    4 - Madonna,
    5,6 -both members of Daft Punk

    Four fingers left over. Did someone else mis-count?
     

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