TIDAL is conducting an “experiment” with Direct Artist Payouts to redirect funding to its emerging talent program, TIDAL RISING

When TIDAL introduced its “fan-centric royalty system” in November 2021, the music streaming company also launched an initiative called Direct-to-Artist Payouts, also known as DAP.

The DAP program earmarks a percentage of the membership dues of TIDAL’s HiFi Plus subscribers to go to their top streaming artist. This direct payment to the artist is in addition to the artist’s streaming royalties.

At the time, then-TIDAL COO Lior Tibon told MBW that “up to 10%” of the subscription fee amount would be paid directly to artists.

“For example in the USA, if you rely on a single HiFi Plus [membership] and you pay $19.99 per month, $2 goes into that plan and basically goes straight into your top streaming artist for that particular calendar month,” he said.

According to an update from TIDAL, the streaming service has now decided to end the DAP “experiment” and those funds will now be diverted to its burgeoning artist program TIDAL RISING.

Artists launched in 2015 who have previously participated in the TIDAL RISING program include Alessia Cara, 21 Savage, A Boogie wit da Hoodie, Mr Eazi, Chloe x Halle.

Confirm the update in a series of tweets on Tuesday (February 28), TIDE CEO Jesse Dorogusker said: “We have decided to quit DAP and do something that w[ith] higher effect”.

He revealed that the company signed up 70,000 artists for Direct Artist Payouts and paid out $500,000 over the course of the experiment, which he says is “far from our goal.”

He added that while the DAP program only focused on a listener’s #1 artist, TIDAL will no longer give a percentage of HiFi Plus membership dues to top listener artists starting in April.

“We have decided to quit DAP and do something that w[ith] higher effect”.

Jesse Dorogusker, TIDE

Dorogusker said: “Changing tack means we will be putting more funding (>10x what we have distributed via DAP) into the TIDAL RISING program – to support emerging artists through education, custom promotion, future direct funding and to celebrate so they can build and grow their careers in music.

“You can expect other highly effective activations such as: Like our recent ‘TIDAL RISING x Atlanta,’ where TIDAL provided four Georgia acts with documentaries, billboards, television coverage and the opportunity to play for and connect with their biggest fans live.”

In January, Universal Music Group announced an alliance with TIDAL, under which the two companies will work together to explore what they call “an innovative new economic model for streaming music that better rewards the value artists bring.” could”.

TIDAL and UMG announced plans to explore how music services and platforms can “generate greater commercial value for any type of artist” by “harnessing fan engagement.”

They added in their announcement that their research will extend to how different economic models “could accelerate subscriber growth, deepen retention, and better monetize fandom for the benefit of artists and the broader music community.”music business worldwide