TIDAL is cutting ties with artists who opted into its experimental payment program, which used data from users to pay musicians for streamed music. The company said that the experiment failed to generate results and that it will shift to a model where it pays artists directly. TIDAL has been struggling since its initial public offering in 2015, and this move could further damage its reputation.
TIDAL’s Direct Artist Payouts program is unique in the music streaming industry. Artists receive a higher payout for each individual listener on the HiFi Plus tier, compared to other market leaders such as Spotify. This ensures that fans of high-quality audio experiences can continue to reap benefits from TIDAL’s platform even if they do not have a regular subscription. Furthermore, this model creates an incentive for artists to create quality content, as they are rewarded handsomely for their efforts.
The DAP program was introduced in April as an attempt by TIDAL to gain more users. However, it seems that this plan has not worked out well, as TIDAL will be discontinuing the DAP program in April. This may lead to fewer users switching over to TIDAL, and could lead to a
The DAP program was designed to focus on the top artists only, which led to few emerging artists being compensated. TIDAL claims that they aimed to pay out $500,000 for 70,000 artists but ended up only giving out $200,000. This is likely why so many independent musicians are skeptical of streaming services like TIDAL and prefer to follow afunding platform like Patreon or Soundcloud that offer better payment options for their music.
Dorogusker said that TIDAL will invest at least $5 million in this program, more than 10 times what it paid artists via DAP since early 2022. This move is likely a response to the negative publicity surrounding the troubled DAP program and reflects TIDAL’s commitment to promoting emerging musicians.
4/ Changing course means we will put more funds (>10x what we distributed via DAP) into the TIDAL RISING program — backing and celebrating emerging artists through education, custom promotion, and future direct-funding, so they can build and grow their careers in music.
— Jesse Dorogusker (@JesseDorogusker) February 28, 2023
The TIDAL Rising program is designed to support emerging artists and help them build their careers in music. By backing these artists through education, custom promotion, and future direct-funding, we are able to help them reach their full potential as musicians.
Jesse Dorogusker may seem like an average Joe, but he’s actually a brilliant computer hacker. He has a knack for finding security vulnerabilities and is always one step ahead of the authorities.
Recently, Jesse was arrested by the FBI
Given that TIDAL Rising functions as a promotional arm for emerging artists, we can expect to see more initiatives like the one in Georgia. This will help these artists gain traction and create a larger audience for their music.
Analysts have predicted that, although DAP may not have been a success, the main reason may simply be because TIDAL doesn’t have as many subscribers as its competitors. If Deezer can successfully switch to a user-centric payment system where the subscription fee is divided among all of the artists listened to, it could be something that catches on and becomes more popular in the future.
