Tidal and Universal Music Group (UMG) have signed a partnership that will see the two companies work together to “explore an innovative new economic model for music streaming that might better reward the value provided by artists.”
As part of the deal, 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 and 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.”
To the advantage of both artists and fans, streaming has redefined music, spurred industry growth, changed the entertainment experience, and created amazing opportunities for participation. Since it has become widely used over the past ten years, there is a greater willingness on the part of all parties to consider the best way to economically align the interests of fans and their favorite artists.
