That's a major reason, but that's not the only reason, there's also brand loyalty.
People can say "oh you give money to steve jobs and spotify though" like Jay tried to say in his Tidal freestyle, but when those services have been around for awhile and treated users well, it's going to be hard to get people to switch if they don't feel like they're being offered a legitimately superior product, and Tidal didn't feel like that for most. And now with the exclusives people feel as though Jay's trying to brute force them into signing up which doesn't feel good to most consumers, it's like with the Xbox One where the initial info and poor marketing spun out of control and it's going to be hard to repair.
Now me? I have no beef with it though that press conference they had at the beginning still boggles my mind, and when I sign up for a streaming service in a couple of months I know Tidal will be it, but I understand why people would be opposed to it even though a lot of the hate I see being thrown at it seems silly imo.