as PDF

CO NTE NT
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WHAT IS TIDAL?
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HOW DOES TIDAL BENEFIT FANS?
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HOW TIDAL DISCOVERY WORKS
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WHY WAS TIDAL FOUNDED?
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HOW DOES TIDAL BENEFIT ARTISTS?
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WHERE DO MY MONTHLY SUBSCRIPTION FEES GO?
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HOW ARE ROYALTIES CALCULATED?
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HOW DOES TIDAL GENERATE REVENUES?
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TIDAL PROGRAMS
WHERE IS TIDAL AVAILABLE?
WHAT IS TIDAL?
TIDAL is a global music and entertainment platform that
brings artists and fans together through unique music and
content experiences and is currently available in 46 countries.
TIDAL has over 40 million songs in our catalog and over
100,000 high quality videos, offering passionate music fans
both a premium and high fidelity CD sound quality, along with
high resolution video, and expertly curated content.
TIDAL has the commitment of artist owners that believe in
creating a more sustainable model for the music industry. The
founding TIDAL artist-owners are Alicia Keys, Arcade Fire (Win
Butler and Regine Chassagne), Beyoncé, Calvin Harris, Coldplay, Daft Punk, Deadmau5, Jack White, Jason Aldean, J. Cole,
Kanye West, Madonna, Nicki Minaj, Rihanna, Shawn “JAY Z”
Carter, Damian Marley, Indochine, Lil Wayne, and Usher.
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HOW DOES TIDAL
BENEFIT FANS?
TIDAL brings music fans closer to their favorite artists and
gives on-demand access to discover new music from our
massive music and video catalog. TIDAL's extensive catalog
is supplemented by exclusive content, including exclusive videos and songs featuring the world's top musicians, athletes
and entertainers and up-and-coming independent artists. We
offer not only access to exclusive digital content, but also the
ability to participate in unique real life experiences such as
concerts with established or emerging artists and other direct interactions between fans and their favorite artists. Human curation is an important part of what we do at TIDAL,
and we have an expert group of tastemakers to help select
and promote emerging artists to a broader audience via our
TIDAL Rising and TIDAL Discovery programs. We also provide
a choice of both premium and HiFi music quality that enables
fans to experience music as the artists intended it to be heard.
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TIDAL PROGR AMS
1. TI DA L X
TIDAL X is a program that supports artists by giving them a
platform to connect with their fans in unique ways, including
one-of-a-kind concert events and artist meet and greets for
TIDAL members to enjoy. With TIDAL’s commitment to help
artists engage and interact with their fans in new ways—the
possibilities are endless for what we can offer fans. TIDAL X
experiences will showcase and support artists of all levels
from established artists to emerging talent.
Fan interactions and geographic data from TIDAL enable TIDAL X events to be targeted to offer compelling experiences for
true fans. Examples include:
•Tickets for Jack White's “Live at the Fargo Theatre”
were distributed to select fans in North Dakota
•Access to J. Cole's live performance at New York’s
Le Poisson Rouge was determined by the amount of
streams of his music devoted fans generated.
•Participation in the Jay Z B-Sides exclusive TIDAL X
concert was via creation of curated playlists by fans.
•Access to Rihanna’s intimate artist/fan experience
for the “Bitch Better Have My Money” music video
debut was granted to Rihanna’s select fans in the
Los Angeles area.
•The 75 highest streamers of Meek Mill’s music
were invited along with a guest to his BET Awards
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Pool Party to hang out with Meek and have a chance
to hear his new album, Dreams Worth More Than
Money, before it came out.
•The top 25 Mary J. Blige TIDAL streamers were
given the opportunity to bring a guest and attend a
special Made In America performance by the Queen
Of R&B Soul at the Statute Of Liberty.
•Julian Casablancas + The VOIDZ conducted a secret show at The Dragonfly in Los Angeles for select
TIDAL users.
•The top 20 Jason Aldean streamers in Nashville
were given the opportunity to bring a guest and attend a special live intimate acoustic performance.
This artist commitment enables us to reward members that engage on
TIDAL, building a community in which fans and artists strengthen their
connection to the music they love.
2. TI DA L R I S I N G
TIDAL Rising is a program dedicated to artists from around the
globe who have passionate fan bases and are ready to reach a wider audience with their music. The term “rising” speaks to the artists’
trajectory as well as the way artists across genres and across the
globe can use TIDAL to assist in that process.
On an on-going basis TIDAL curates and features a select group
of artists across genres from around the world, with support from
our artist & label relations, editorial, marketing, promotions, public
relations, and social media teams, to introduce fans to vibrant and
dynamic music they may have otherwise missed.
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TIDAL Rising artists can leverage the following benefits:
•Prominent Placement On TIDAL - Any album or
single release, video content piece, or playlist or
editorial content piece will be featured on the TIDAL
front page and be allotted a slot in the “What’s New”
section, the most visited placement area on TIDAL.
•Press Photos - Fully-funded and produced professional photo shoot for artists to create incredible
hi-resolution images.
•Public Relations Support - PR team will provide
support to ensure good rollout plans are in place
for releases, and will accompany artist to events if
needed.
•Artist Imaging - Provide a professional stylist to
help artist with wardrobe, hair, and makeup, as well
as other aspects such as media training.
•Tour Support - This speaks to the core values of
artists supporting artists. The premise is simple:
TIDAL’s Tour Support is a fund for TIDAL Rising
artists that never has to be re-couped or paid back.
This may include facilitation of everything from van
rentals to equipment rentals to fuel to hotel and any
other needs that may arise for the band on the road.
•Music Videos - TIDAL can provide funding and
help connect artists with great and established
music video directors so that newer artsts can create
incredible and professional music videos.
•Custom Editorial And Video Content - Video and
editorial features that allow fans to really get an indepth look at an artist and their musical persona.
•Live Show Bookings or Premium Show Placements - Valuable opportunities to perform for tastemakers, industry heavyweights, and fans (example;
TIDAL Rising Stage at Made in America Philly & San
Francisco).
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3. TI DA L D I SCOV E RY
TIDAL Discovery spotlights unsigned artists and enables
them to share their music on TIDAL, with the potential of being featured on monthly TIDAL playlists and being promoted
among other TIDAL exclusive content. Some of the best music
in the world is the music we never hear, because sometimes
the most talented artists don’t get the break they deserve.
TIDAL Discovery was built to give them that break. This is an
area within TIDAL that is exactly what the name suggests—a
place for TIDAL subscribers to exclusively discover the music
of tomorrow.
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HOW TIDAL DISCOVERY WORKS
TIDAL’s digital distribution partners DistroKid, Indigoboom,
TuneCore and Record Union provide further choice for unsigned artists that want to get their music on TIDAL. Through
TIDAL Discovery, artists can select their preferred distribution
partner and royalty structure, making it easy and beneficial for
artists that are not signed to a traditional label to release their
music through streaming.
TIDAL has the following programs in place to help Discovery
Artists achieve success:
•Featured Placements: On a weekly basis unsigned
artists who submit their music to TIDAL are handpicked for TIDAL Discovery feature placements. These
placements can range from highlighted tracks, to
albums or video content. Every month up to 5 Discovery Artists are selected for placement on the TIDAL
homepage accompanied by an interview or write-up
describing what makes these selections stand out.
•Custom Video Content: Selected TIDAL Discovery
artists will receive an opportunity to have TIDAL shoot
custom video content in an effort to help propel their
budding career even further at no expense. These exclusive videos have ranged from actual music videos
to day in the life pieces that display the determination
needed to succeed in the music industry.
•Live Performance Opportunities: Selected TIDAL
Discovery artists will be tapped to perform at TIDAL
Discovery branded events and festivals.
TIDAL Discovery is a place for TIDAL subscribers to exclusively discover the music of tomorrow so that it becomes their
music of today. As a music fan - Find the new stars at listen.
tidal.com/discovery.
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WHY WAS TIDAL FOUNDED?
1. B EC AUS E N OTH I N G S H O U LD G E T I N TH E
M I DDLE O F FA N S A N D TH E I R A R TI S T S.
TIDAL was founded with the mission of bringing fans and
artists closer together and creating a sustainable industry
model that values music and artists. By empowering artists
with greater creative control and by operating as a majority
artist-owned company, TIDAL is uniquely positioned to create
more value for fans, and stronger artist-fan connection.
Music consumption is changing. It is shifting away from purchasing and owning music (via CD sales and downloads) to
now accessing music via streaming without a desire to own
physical copies of music. This shift represents an opportunity
to create a better experience for fans by empowering artists
to share what they want, when and how they want to, directly
with their fans. Whether it is through sharing exclusive songs
and videos, or live experiences, TIDAL provides something
unique to fans from their favorite artists.
One of TIDAL's greatest advantage is being able to provide
artists with access to robust data and analytics to facilitate
better direct communication with their fans. From learning
about most popular tracks to geographic information and
time of day their music is being streamed, TIDAL enables
artists to directly engage their fan base through the use of
targeted analytics.
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2. B EC AUS E W E B E LI E V E I N TH E N E X T
G E N E R ATI O N O F A R TI S T S.
While we're proud to offer a catalogue of over 40 million songs
to TIDAL subscribers, we know the experience shouldn't end
there for music fans: so TIDAL is actively seeking and building
the next generation of emerging artists while helping TIDAL
subscribers easily discover new music along the way.
Through TIDAL Discovery, we are actively engaging in the
marketing and promotion of new, unsigned talent, including
staging a series of TIDAL Discovery concerts across the United States featuring some of the top streaming TIDAL Discovery artists – because the future of music is only as bright as
the next generation who creates it.
3. B EC AUS E D I V E R S IT Y I N M US I C M AT TE R S.
We believe in the power of indie artists and that music should
be as diverse as the world of people who listen to it. TIDAL is
a platform that celebrates artist creativity by providing a commercially viable platform to distribute music that isn't always
targeted to mainstream distribution outlets. We believe that
creating art should not be limited to traditional distribution
formulas to drive mass appeal (e.g. shorter song lengths, language constraints), but rather artists’ true intention to create
authentic music for their fans.
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HOW DOES TIDAL
BENEFIT ARTISTS?
Despite an unprecedented increase in the demand for music over
the past ten years, the actual value of the recorded music industry
has declined by 32% over that time span.
T I D A L A N A LY S I S
GLOBAL RECORDED MUSIC INDUSTRY REVENUES
US $ BILLION
25
20
15
10
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
SOURCE: IFPI
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h ow d o e s t i da l b e n e f i t a r t i s t s?
TIDAL believes in valuing music. We are committed to creating a sustainable model for the future of the music industry,
which includes maintaining value for music, respecting creativity and encouraging the active participation of artists. A
more sustainable and equitable model for artists, producers
and songwriters that includes paying more for streaming, can
help incentivize support for streaming and create new ways
to ensure music maintains its value . We support full transparency to better educate consumers and stakeholders, and
encourage all music industry stakeholders to embrace open
communication about the cost of their services.
Our artist-owners developed our model so that TIDAL pays
the highest ratio of royalties vs. revenues to music creators
of any streaming service and equal rates are paid to artists
regardless of whether they're signed to a major label, an indie
label, or not signed to a label at all.
TIDAL believes in the value of music and the contributions
of all artists. We provide the highest compensation to artists
and are consistent in our approach regardless of whether an
artist is on a major label or independent. While other services
compensate independent rights owners less than major labels, TIDAL pays all major and independent labels and rights
owners equally. TIDAL also does not pay the labels any fees
that are not disclosed.
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WHERE DO MY MONTHLY
SUBSCRIPTION FEES GO?
END USER PRICE
PREMIUM
WEB/ ANDROID
CREDIT CARD *
$9.99
HIFI
WEB/ ANDROID
CREDIT CARD *
$19.99
$ 0.50
$ 0.50
NOTE: PRICE CHARGED TO THE END USER
Payment processing fees to credit card
and online payment providers
$ 1.20
Rightsholder’s fee:
Music reproduction rights
Rightsholder’s fee:
Performance rights
$ 12.50
Master recording royalties
$ 0.40
$ 0.50
$ 0.60
Gross Profit to fund required ITmaintenance and development costs
alongside additional operating expenses
$ 6.20
$ 5.30
$ 2.30
As seen in the chart above, the $9.99 Premium and $19.99 HiFi
monthly subscription fees go toward paying royalties for master recordings, copyrights and various other royalties, as well
as to credit card payment fees and to fund operating expenses. Operating expenses are paid from gross profi t, including
staff, office space, and content hosting costs.
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END USER PRICE
PREMIUM
IOS APP STORE
APPLE BILLING **
$12.99
HIFI
IOS APP STORE
APPLE BILLING **
$25.99
NOTE: PRICE CHARGED TO THE END USER
Payment processing fees to credit card
and online payment providers
$ 7.80
Rightsholder’s fee:
Music reproduction rights
$ 0.50
$ 1.60
Rightsholder’s fee:
Performance rights
Master recording royalties
$ 3.90
$ 12.50
Gross Profit to fund required ITmaintenance and development costs
alongside additional operating expenses
$ 0.50
$ 0.80
$ 6.20
$ 3.60
$ 1.50
As with other platforms, in some instances, what fans pay for
include fees charged by third parties that are out of our control. For example, when someone subscribes to TIDAL via the
iPhone app, Apple charges a 30% administrative fee. Similar to
other apps, this is why TIDAL prices are higher within the app
store ($12.99 and $25.99 if subscribed to in-app, versus the
lower cost of $9.99 and $19.99 if subscribed to via TIDAL.com.)
There are a number of variables that impact an artist's royalty
payments, including the following:
• Location from which people are streaming an artist's
music
• TIDAL's total number of paying subscribers
• Relative premium pricing and currency value in different
countries
• An artist's royalty rate with his/her label
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HOW ARE ROYALTIES
CALCUL ATED?
The formula below explains the Tidal royalty system in more detail:
1. TI DA L M O NTH LY R E V E N U E
The total revenue TIDAL makes in a given month comes only
from subscriptions. TIDAL does not generate revenue through
advertising placement in its services. For TIDAL, artist royalties are calculated on the basis of all revenues without exception.
2. A R TI S T’ S TI DA L S TR E A M S / TOTA L TI DA L
S TR E A M S
This ratio calculates an artist’s share of total listens, based
on popularity. The result determines the percentage of our
total pay outs that should be paid for that artist’s music
rights. Importantly, all streams on TIDAL are listened to by
paid subscribers; unlike other services, we do not have a
free offering (allowing only for free trial periods), so the revenues paid to rights holders are not diluted by free streams
and rights holders are compensated.
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3. ~75% TO M A S TE R A N D PU B LI S H I N G OW N E R S
TIDAL negotiates our royalty economics with the record labels
and music publishers in each territory where we operate. Our
current payment structure calls for us to pay out up to 75% of
the service revenues to rights holders (including both master
recording rights holders as well as music publishers).
4. A R TI S T’ S ROYA LT Y R ATE
This is the end rate paid to the artist after the rights holder
royalty split and any other deductions have been applied by
the record labels and publishers.
Once TIDAL has paid a rights owner the total royalties due for
their accumulated streams, that label or publisher pays each
artist according to that artist’s contractual royalty rates. For
example, a label may have a deal in which they retain 80% of
all distribution fees and 20% goes to the artist.
Recoupment status may also impact the royalties artists receive from their respective labels and publishers (some labels
cross collateralize streaming income against unrecouped recording costs balances).
Independent (unsigned) artists can retain up to 100% of their
royalty payouts from TIDAL by using one of our aggregator
partners (a small fee may be applied by such partners) via the
TIDAL Discovery platform.
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H OW DO E S A LL O F TH I S WO R K O U T I N PR AC TI CE?
The chart shows average royalty payments for albums in
terms of popularity (top 10, top 11-50 and top 51-100) for 1
million subscribers:
11 - 5 0 A V E R A G E
51 -1 0 0 A V E R A G E
~$ 52.5K
~$ 15.0K
~$ 7.5K
0
5000
10000
15000
ALBUM PAYOUT
PER MONTH (AVERAGE)
TO P 10 AV E R AG E
20000
TOP PLAYED ALBUMS
The bars and $USD figures are the total royalties to be paid
out to rights holders for albums for 1 million subscribers on
TIDAL. The average monthly gross royalty payments for the
top 10 album on TIDAL are ~$52.5k, compared to ~$15.0k on
average per album positioned between 11-50 in terms of popularity, and ~$7.5k per albums for those between the top 51100 places.
Even though we are currently generating millions of dollars
in royalties for rights holders for the top artists each year, we
are just getting started and expect to earn artists and rights
holders far more as we grow our subscriber base.
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HOW DOES TIDAL
GENER ATE REVENUES?
TIDAL generates revenues by charging users a subscription
fee. TIDAL currently has 2 subscriptions tiers (and a subscriber can try either with a 30-day free trial).
1. PR E M I U M FO R $9.99 / M O NTH
For $9.99 per month, TIDAL's Premium tier gives users unlimited music across multiple devices including smartphones,
computers and tablets, as well as access to exclusive TIDAL X
events. TIDAL Premium subscribers can also create playlists
and download songs to their devices for offline listening – all
without intrusive advertisements.
2. H I FI FO R $19.99 / M O NTH
TIDAL's HiFi tier gives subscribers all the same great content
and experiences as a Premium subscription, except music is
delivered in lossless, CD quality (1411 kbps vs. 320 kbps for
standard streaming).
HiFi streaming delivers an uncompressed sound file, which
means that you can hear every instrument and every note – as
the artist intended. This tier costs $19.99 per month.
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SOUND QUALITY CHART
PREMIUM
HIFI
300
600
900
1200
1500
KBPS
3. D I SCO U NT PROG R A M FO R S T U DE NT S
TIDAL offers a special discount program for students, in order to provide access to both our tiers at aff ordable prices.
Student benefi t from 50% discount on our subscription tiers.
4. D I SCO U NT PROG R A M FO R FA M I LI E S
TIDAL offers a special discount program for families, in order
to provide an aff ordable access to all family members who
want to enjoy their own favorite music. Each additional family
member is offered a 50% discount on both subscription tiers.
The family package is limited to 5 members.
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WHERE IS TIDAL AVAIL ABLE?
TIDAL is currently available in 46 countries with plans for further international expansion soon! As we continue to grow,
we'll be able to deliver more great content and TIDAL X events
for our subscribers, as well as continue to contribute to the
GEOGRAPHY
health of the music industry by growing the amount of royalties we pay to music creators.
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