1. TIDAL MONTHLY REVENUE 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 excep- tion. HOW ARE ROYALTIES CALCULATED? 2. ARTIST’S TIDAL STREAMS / TOTAL TIDAL STREAMS This ratio calculates an artist’s share of total listens, based on popularity. The result determines the percentage of our total payouts 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.
how are royalties calculated b. ARTIST’S ROYALTY RATE bThis 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 maybe applied by such partners) via the TIDAL Discovery platform.