TIDAL and Universal Music Group Partner to Develop More Artist- and Fan-Friendly Streaming Model

Rhea-AI Summary

TIDAL and Universal Music Group (UMG) have announced a partnership to explore a new economic model for music streaming aimed at better rewarding artists based on fan engagement. The collaboration seeks to innovate streaming economics to enhance royalty distribution for artists and provide greater commercial value across the music community. TIDAL, known for its artist-first approach, will pause its current fan-centered royalties investigation to focus on this new initiative. Both companies emphasize the importance of a sustainable future for the music industry, aiming to align fan interests with artist compensation.

Positive

• Partnership with UMG aims to innovate streaming economics.
• Focus on better rewarding artists based on fan engagement.
• TIDAL's artist-first approach may lead to improved royalty distribution.

Negative

• Current fan-centered royalties investigation is paused.
• Uncertain outcomes regarding the new economic model.

NEW YORK--(BUSINESS WIRE)-- TIDAL, the global music and entertainment platform, and Universal Music Group (UMG), the world leader in music-based entertainment, today announced that the two companies will work together to explore an innovative new economic model for music streaming that might better reward the value provided by artists and more closely reflect the engagement of TIDAL subscribers with those artists and music they love.

Streaming has revolutionized music, catalyzed industry growth, transformed the entertainment experience and provided incredible opportunities for engagement, to the benefit of artists and fans alike. As it has gained mass adoption over the past decade, there is more desire from all parties to look at how to best economically align fans’ interests with those of their favorite artists.

TIDAL and UMG will research how, by harnessing fan engagement, digital music services and platforms can generate greater commercial value for every type of artist. The research will extend to how different economic models could accelerate subscriber growth, deepen retention, and better monetize fandom to the benefit of artists and the broader music community.

“From day one, TIDAL has stood out as artist-first, leading with a premium subscription tier to pay artists more and experimenting with new ideas like fan-centered royalties to see if there are fairer and more equitable ways to get artists paid,” said TIDAL Lead Jesse Dorogusker. “We are setting aside our current fan-centered royalties investigation to focus on this opportunity for more impact. We’re thrilled to partner and learn along the way about the possibilities for more innovative streaming economics. This partnership will enable us to rethink how we can sustainably improve royalties’ distribution for the breadth of artists on our platform."

“As the digital landscape continues to evolve, it’s become increasingly clear that music streaming’s economic model needs innovation to ensure a vibrant and sustainable future,” said Michael Nash, UMG’s Executive Vice President, Chief Digital Officer. “Tidal’s embrace of this transformational opportunity is especially exciting because the music ecosystem can work better – for every type of artist and fan – but only through dedicated, thoughtful collaboration. Built on deeply held, shared principles about the value of artistry and the importance of the artist-fan relationship, this strategic initiative will explore how to enhance and advance the model in keeping with our collective objectives.”

About TIDAL

TIDAL is a global music platform that helps fans and artists fully immerse themselves in their love of music. By helping artists with their business so they can focus on their craft and offering experiences that elevate how fans engage with music, artists and each other, TIDAL is the best platform for artists, fans, and all things music.

Available in 61 countries, the streaming service has more than 90 million songs and 450,000 high-quality videos in its catalog, along with original video series, podcasts, thousands of expertly curated playlists, and artist discovery via TIDAL Rising. TIDAL is available in Free (US only), HiFi, and HiFi Plus tiers, with the HiFi Plus membership offering access to immersive audio features like Master Quality Authenticated (MQA) recordings, Dolby Atmos Music, and Sony’s 360 Reality Audio recordings; for a higher monthly fee that TIDAL redistributes back to artists.

TIDAL is part of Block, Inc. (NYSE: SQ), a global technology company with a focus on financial services.

For more information, please visit www.tidal.com.

About Universal Music Group

At Universal Music Group, we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms, and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information, visit www.universalmusic.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005890/en/

TIDAL: Sade Ayodele, Head of Communications - sayodele@tidal.com

Universal Music Group, global communications: James Murtagh-Hopkins james.murtagh-hopkins@umusic.com

Source: Block, Inc.

FAQ

What is the partnership between TIDAL and Universal Music Group about?

TIDAL and UMG are partnering to explore a new economic model for music streaming that aims to better reward artists based on fan engagement.

Why is TIDAL pausing its current fan-centered royalties investigation?

TIDAL is pausing its investigation to focus on the new partnership with UMG for more impactful opportunities in streaming economics.

What are the potential benefits of the TIDAL and UMG partnership for artists?

The partnership aims to enhance royalty distribution for artists and generate greater commercial value across the music community.

How could the new economic model affect TIDAL subscribers?

The new model may deepen subscriber retention and better monetize fandom, aligning fan interests with artist compensation.

What are the key objectives of the TIDAL and UMG initiative?

The initiative seeks to innovate music streaming's economic model to support a sustainable future for artists and enhance the fan-artist relationship.