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Jay-Z's Tidal hit by another setback as CEO waves goodbye

Tidal, the music streaming service set up by Jay-Z, has suffered another setback after the current CEO decided to leave the company.

Peter Tonstad, who had been serving as CEO since the departure of Andy Chen, had only been in the position since April.

Read more: Tidal searching for partners to expand streaming business

A spokesperson for Tidal confirmed the departure, thanking Tonstad for stepping in as interim CEO and confirmed that "current executives in New York and Oslo” will continue to lead the service until a new CEO is in place.

The music streaming platform is attempting to compete with the likes of Spotify, Deezer and Apple Music, offering higher royalty payments for artists. Tidal provides musicians with 75 per cent royalties, compared to Spotify’s 70 per cent and Apple’s 71 per cent.

Although the service has been in existence for some time now, it has only gained mainstream prominence since its relaunch in March this year under the leadership of hip-hop megastar Jay-Z, who purchased the firm for $56 million. A number of other high-profile stars have also invested in the platform including Kanye West, Jack White, Madonna and Jay-Z’s wife Beyoncé.

Tidal has distribution agreements with all three major record labels as well as a number of independents, but has been criticised for not following the free subscription model of other streaming sites. Some industry experts have even suggested that creating exclusive content could fuel a rise in music piracy.

Read more: Apple Music forcing competitors to lower prices

So far, Tidal has an estimated 770,000 subscribers, way below Spotify’s userbase of 20 million.