Music streaming service Tidal has launched a new membership tier that will send payments to artists in two ways, Music Business Worldwide reported Wednesday (Nov. 17).
With a new fan-centered royalties model included in Tidal’s HiFi Plus membership tier, royalties attributed to that tier’s subscribers will be paid to artists based on the subscribers’ streaming activity, rather than from a pool as is standard in the industry, according to the report.
In addition, with new direct-to-artist payments, up to 10% of each HiFi Plus subscriber’s monthly membership fee will go to the artist whose music they streamed the most during that calendar month, the report stated.
Tidal was acquired by Square earlier this year, and the music streaming service has partnered with Square, Cash App and PayPal to process the payments to artists, according to the report. Artists will need to opt-in through one of these entities in order to access the new payments.
Square struck a deal to acquire a majority ownership stake in Tidal in March for a mix of cash and stock of $297 million.
Square offers a software and hardware system that helps sellers start, run and expand their businesses. Sellers use Square’s point-of-sale (POS) mobile application to take payments. Individuals use its Cash App to spend, send, store and invest money.
Tidal said at the time of the deal that the music streaming service “brings artists and fans closer together through unique original content and exclusive events.”
Square Co-Founder and CEO Jack Dorsey said, “It comes down to one simple idea: finding new ways for artists to support their work. New ideas are found at intersections, and we believe there’s a compelling one between music and the economy.”