Tidal Debuts Direct-to-Artist Payments, Adds Free Ad-Supported Tier

Tidal launched direct-to-artist payments, giving artists “an additional payment stream,” said the streaming music service Wednesday. Each month, beginning in 2022, a percentage of Tidal’s highest tier’s subscribers' membership fees will be directed toward the top streamed artist. Royalties will be paid based on the actual streaming activity of individual HiFi Plus subscribers rather than the industry-accepted method of aggregating streams, “empowering fans to play a larger role in the success of their favorite artists,” Tidal said. The direct-to-artist payment is in addition to artists' streaming royalties, the company said. It joined with Square, Cash App and PayPal for “seamless payouts” to artists. It’s also working with distributors CD Baby, DistroKid, Stem, Symphonic Distribution and TuneCore, with Equity Distribution Services and Vydia “launching soon,” to ensure artists sharing music through those platforms are able to receive their payments via in-platform registration, Tidal said. All artists must opt in to access direct artist payouts, either through Tidal’s invitation-only direct registration option or through one of its distribution partners. The streaming service will continue to open access to the program in the coming months. Tidal also announced it entered the free streaming music space with an ad-supported platform available only in the U.S. Customers on the free tier will have access to the full Tidal catalog “with limited interruptions,” it said. The service’s $9.99 monthly HiFi tier has “interruption-free” listening and access to hi-fi tracks, Tidal Connect and daily listening insights; the top-tier $19.99 monthly service adds the "fan-centered royalties" and direct-to-artist payments, along with Master Quality Authenticated tracks and immersive sound formats Dolby Atmos Music and Sony 360 Audio.