• What are Fan-Centered Royalties?
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    Fan-Centered Royalties were introduced in 2022 as part of our HiFi Plus tier. We believe this fairer approach to royalty payments ensures that your monthly subscription goes to your own favorite artists and tracks as opposed to who everyone else listens to.

     

    How Are Royalties Currently Being Calculated?

    Currently, all major streaming services calculate royalties for sound recordings in a similar manner. An overall royalty “pool” is determined every calendar month by streaming providers, the size of which is based upon the total subscription fees received from subscribers for that month. Then, the total number of streams are aggregated across subscribers each month on a country and plan basis, and then split by artist.

    Streaming services then pay record labels and distributors these monthly royalties based on their respective artists, and provide detailed information so they can divide and allocate the monies appropriately. From there, artists receive a portion of the overall royalty “pool”, based on the aggregate listening patterns for the month and other parties who contractually  are set up to receive a portion of the funds. 

    One result of this system is that the fans who stream less than average in a particular month wind up paying less money to the artists they love and instead see some of their subscription fees going to artists they never listened to at all.

     

    How do Fan-Centered Royalties work?

    We believe Fan-Centered Royalties are a fairer way to calculate royalty payments. In this model, most royalties attributed to HiFi Plus subscribers will not be aggregated. With support from participating label partners, we split the royalties for qualifying tracks to each user separately, directing them to the artists they listened to in a specific calendar month.

     This method creates a more direct connection between subscribers and artists at participating labels, and neutralizes the impact of different behaviors on the outcome for royalty distributions. For example: under the aggregate method, artists who are listened to by casual TIDAL users effectively “fund” artists chosen by more frequent listeners.

     The majority of TIDAL's artists are eligible for Fan-Centered Royalties, and we are actively working with our partners to ensure more artists to benefit from Fan-Centered Royalties.

     

    When do Direct Artist Payouts and Fan-Centered Royalties get calculated?

    Direct Artist Payouts and Fan-Centered Royalties get calculated on the first of each month based on your activity in the prior month.

     

    Where can I see Direct Artist Payouts?

    You can check the My Activity tab in the app to see the results of your prior month's streams on Direct Artists Payouts.

     

    Why can't I see Fan-Centered Royalties?

    We are working on a solution for how to accurately show Fan-Centered Royalty payments in app on a per artist level given that not all of our partners have agreed to Fan-Centered Royalty payments. Even though they are currently not displayed in the app, TIDAL issues monthly reports to our label and distributor partners with the calculated Fan-Centered Royalty payments each artist should receive. Label and distributor partners are responsible for issuing royalty payments (as they would under any royalty allocation method).

     

    Do all HiFi Plus members have access to Direct Artist Payouts and Fan-Centered Royalties?

    There are some HiFi Plus users who do not have access to Direct Artist Payouts or Fan-Centered Royalties based on their subscription type. All TIDAL HiFi Plus users have access to premium, immersive audio experiences.

     

    User Type

    Direct Artist Payout

    Fan Centered Royalties

    Subscribers through Service Providers (i.e. - Sprint, PlayPoland)

    No

    No

    Family Plan - Parent Account (Main Account)

    Yes

    Yes 

    Family Plan - Child

    No

    Yes

    Users on Discounted Plans 

    No

    Yes

    Also note that if you are on a free trial or have not paid for your plan (i.e. - payment issue), these features will not be available to you until you are charged.

     

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