The future of Tidal

How bad does a business model have to be to have a cash burn rate that creates losses of a little over $4 million a month on average? These are essentially files on servers that at any rate do not cost in the millions to stream. How much do the record labels charge for licencing fees?

Assuming Tidal has inflated figures - with 500,000 subscribers they still should have at least $5 million in revenue a month for their basic service.

Streaming income has kept the recording industry afloat. The artists may not be happy with their share but the labels have offset much of the loss from low CD and Download sales.
 
Assuming that all my personal playlists and favorite albums go poof if Tidal folds up their tent in the night, is there any easy way to archive the particulars of all these tracks/albums should I have to start buying media? Or is it time to start making lists the old-fashioned way in my barely legible handwriting?

If you have Roon and sign out of Tidal, do all the Tidal titles disappear or just gray out or something?
 
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Streaming income has kept the recording industry afloat. The artists may not be happy with their share but the labels have offset much of the loss from low CD and Download sales.

Saw this online , pay per stream to the artists.

Napster - $0.0167
Tidal - $0.0110
Apple Music - $0.0064
Google Play - $0.0059
Deezer - $0.0056
Spotify - $0.0038
Pandora - $0.0011

YouTube - $0.0006

https://www.forbes.com/sites/hughmc...reaming-services-pay-per-stream/#c9a0ef4448cb

From another site: An example of Tidal, A Signed artists get $0.0125 per play. They would need 120,000 plays to receive $1,472.
https://www.digitalmusicnews.com/2017/07/24/what-streaming-music-services-pay-updated-for-2017/



Not sure about keeping the industry afloat. After that whooping sum of mony is seen, this amount may need to be split up with agents, managers, labels and this doesn't account for paying singers, mastering, session musicians, artwork and distribution fees.
 
I read somewhere that Spotify is paying out over 70% of their revenue in royalties. It makes you wonder who is telling the truth.

The payouts artists receive are minuscule from any single service it seems. But if you amalgamate what they receive from all of the streaming services I wonder what they are. There is something to be said for a monthly income vs. a payout from from declining CD sales.
 
Parker, you can convert your playlists from Tidal to one of the other streaming services by using:

https://soundiiz.com

I have converted my playlists from platform to platform with over 95% of the songs in playlists making it thru. The difference seems to be that one provider does not have that artist or song. I have converted over 2000 tracks this way.


Assuming that all my personal playlists and favorite albums go poof if Tidal folds up their tent in the night, is there any easy way to archive the particulars of all these tracks/albums should I have to start buying media? Or is it time to start making lists the old-fashioned way in my barely legible handwriting?

If you have Roon and sign out of Tidal, do all the Tidal titles disappear or just gray out or something?
 
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Saw this online , pay per stream to the artists.

Napster - $0.0167
Tidal - $0.0110
Apple Music - $0.0064
Google Play - $0.0059
Deezer - $0.0056
Spotify - $0.0038
Pandora - $0.0011

YouTube - $0.0006

https://www.forbes.com/sites/hughmc...reaming-services-pay-per-stream/#c9a0ef4448cb

From another site: An example of Tidal, A Signed artists get $0.0125 per play. They would need 120,000 plays to receive $1,472.
https://www.digitalmusicnews.com/2017/07/24/what-streaming-music-services-pay-updated-for-2017/



Not sure about keeping the industry afloat. After that whooping sum of mony is seen, this amount may need to be split up with agents, managers, labels and this doesn't account for paying singers, mastering, session musicians, artwork and distribution fees.

Within that $2.5 billion of streaming revenue lies one of the RIAA's most contentious issues: the gap in revenue between paid subscription streaming services, like Apple Music and Spotify premium, and ad-supported on-demand services, like YouTube and Spotify's free tier. Paid on-demand subscription revenue on its own was $1.7 billion, up 61 percent from the same period in 2016 and itself representing 43 percent of the total value of the U.S. music industry, dwarfing digital download and physical revenue combined.
 
Parker, you can convert your playlists from Tidal to one of the other streaming services by using:

https://soundiiz.com

I have converted my playlists from platform to platform with over 95% of the songs in playlists making it thru. The difference seems to be that one provider does not have that artist or song. I have converted over 2000 tracks this way.

Thanks, Le Roy! I've been trying to keep track of the stuff I'd want to own if cd-quality streaming wasn't possible but keeping up with the sheer volume of what's available to explore on Tidal makes it difficult to hear albums a second or third time to confirm their potential.
Parker
 

Interesting article. Streaming as a whole is doing great for someone most likely the labels.

Also its not all roses as that article appears. The streaming providers are losing while the big labels are making money
https://gizmodo.com/streaming-music-services-from-most-screwed-to-least-sc-1793612699
http://www.abc.net.au/news/2017-09-...aming-rising-but-spotify-losing-money/8875188
 
Interesting article. Streaming as a whole is doing great for someone most likely the labels.

Also its not all roses as that article appears. The streaming providers are losing while the big labels are making money
https://gizmodo.com/streaming-music-services-from-most-screwed-to-least-sc-1793612699
http://www.abc.net.au/news/2017-09-...aming-rising-but-spotify-losing-money/8875188

Exactly. That is why artists are touring and why even smaller artists sell CD's at their concerts.
 
This is getting play on other audio forums. A drawback to it is that some who might have been thinking about using it might decide to wait and see. So, now Tidal gets less revenue.
 
This is getting play on other audio forums. A drawback to it is that some who might have been thinking about using it might decide to wait and see. So, now Tidal gets less revenue.
Which is silly, since a Tidal subscriber or potential subscriber isn't "risking" anything except the (low) monthly fee
 
It looks like royalties to music labels are closer to 80% according to this blog.
https://thebusinessoftech.wordpress.com/tag/tidal/

Here are some numbers from that article ...

[TABLE="width: 581"]
[TR]
[TD="width: 198"]Pricing Structure[/TD]
[TD="width: 198"]Price per Month[/TD]
[TD="width: 184"]% of User Base[/TD]
[/TR]
[TR]
[TD="width: 198"]Hi-fidelity[/TD]
[TD="width: 198"]$ 19.99[/TD]
[TD="width: 184"]45%[/TD]
[/TR]
[TR]
[TD="width: 198"]Regular[/TD]
[TD="width: 198"]$ 9.99[/TD]
[TD="width: 184"]55%[/TD]
[/TR]
[/TABLE]

[TABLE="width: 623"]
[TR]
[TD="width: 198"]Revenue[/TD]
[TD="width: 198"]Monthly[/TD]
[TD="width: 227"]Yearly[/TD]
[/TR]
[TR]
[TD="width: 198"]Hi-fidelity Subscription[/TD]
[TD="width: 198"]$ 26,986,500.00[/TD]
[TD="width: 227"]$ 323,838,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Regular Subscription[/TD]
[TD="width: 198"]$ 16,483,500.00[/TD]
[TD="width: 227"]$ 197,802,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Total Revenue[/TD]
[TD="width: 198"]$ 43,470,000.00[/TD]
[TD="width: 227"]$ 521,640,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Cost[/TD]
[TD="width: 198"][/TD]
[TD="width: 227"][/TD]
[/TR]
[TR]
[TD="width: 198"]Royalty Pay-out Costs*[/TD]
[TD="width: 198"]$ 17,388,000.00[/TD]
[TD="width: 227"]$ 208,656,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]R&D Costs**[/TD]
[TD="width: 198"]$ –[/TD]
[TD="width: 227"]$ –[/TD]
[/TR]
[TR]
[TD="width: 198"]Total Cost[/TD]
[TD="width: 198"]$ 17,388,000.00[/TD]
[TD="width: 227"]$ 208,656,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"][/TD]
[TD="width: 198"][/TD]
[TD="width: 227"][/TD]
[/TR]
[TR]
[TD="width: 198"]Profit Margin[/TD]
[TD="width: 198"][/TD]
[TD="width: 227"]60%[/TD]
[/TR]
[TR]
[TD="width: 198"]Profit[/TD]
[TD="width: 198"]$ 26,082,000.00[/TD]
[TD="width: 227"]$ 312,984,000.00[/TD]
[/TR]
[/TABLE]

Tidal was supposed to have an advantage here being owned by some of the artists.
But still 70% - 80% is an absolute killing considering that most of the heavy lifting is being done by someone else.
 
I don't know about you guys, but I honestly think the $20 is actually too cheap, for the service and catalog provided. The amount of music in Tidal is just mind-blowing.
 
It looks like royalties to music labels are closer to 80% according to this blog.
https://thebusinessoftech.wordpress.com/tag/tidal/

Here are some numbers from that article ...

[TABLE="width: 581"]
[TR]
[TD="width: 198"]Pricing Structure[/TD]
[TD="width: 198"]Price per Month[/TD]
[TD="width: 184"]% of User Base[/TD]
[/TR]
[TR]
[TD="width: 198"]Hi-fidelity[/TD]
[TD="width: 198"]$ 19.99[/TD]
[TD="width: 184"]45%[/TD]
[/TR]
[TR]
[TD="width: 198"]Regular[/TD]
[TD="width: 198"]$ 9.99[/TD]
[TD="width: 184"]55%[/TD]
[/TR]
[/TABLE]

[TABLE="width: 623"]
[TR]
[TD="width: 198"]Revenue[/TD]
[TD="width: 198"]Monthly[/TD]
[TD="width: 227"]Yearly[/TD]
[/TR]
[TR]
[TD="width: 198"]Hi-fidelity Subscription[/TD]
[TD="width: 198"]$ 26,986,500.00[/TD]
[TD="width: 227"]$ 323,838,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Regular Subscription[/TD]
[TD="width: 198"]$ 16,483,500.00[/TD]
[TD="width: 227"]$ 197,802,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Total Revenue[/TD]
[TD="width: 198"]$ 43,470,000.00[/TD]
[TD="width: 227"]$ 521,640,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]Cost[/TD]
[TD="width: 198"][/TD]
[TD="width: 227"][/TD]
[/TR]
[TR]
[TD="width: 198"]Royalty Pay-out Costs*[/TD]
[TD="width: 198"]$ 17,388,000.00[/TD]
[TD="width: 227"]$ 208,656,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"]R&D Costs**[/TD]
[TD="width: 198"]$ –[/TD]
[TD="width: 227"]$ –[/TD]
[/TR]
[TR]
[TD="width: 198"]Total Cost[/TD]
[TD="width: 198"]$ 17,388,000.00[/TD]
[TD="width: 227"]$ 208,656,000.00[/TD]
[/TR]
[TR]
[TD="width: 198"][/TD]
[TD="width: 198"][/TD]
[TD="width: 227"][/TD]
[/TR]
[TR]
[TD="width: 198"]Profit Margin[/TD]
[TD="width: 198"][/TD]
[TD="width: 227"]60%[/TD]
[/TR]
[TR]
[TD="width: 198"]Profit[/TD]
[TD="width: 198"]$ 26,082,000.00[/TD]
[TD="width: 227"]$ 312,984,000.00[/TD]
[/TR]
[/TABLE]

Tidal was supposed to have an advantage here being owned by some of the artists.
But still 70% - 80% is an absolute killing considering that most of the heavy lifting is being done by someone else.

Like I noted way back, what is Tidal doing with profits ?
Maybe this is Jay Z's piggy bank to continue to open new business streams or to slap a huge payback to those "well know artist" that invested in Tidal at the rebirth. When a company cannot afford to stay in business from huge loses, one stars looking at the operating structure. Speculating of course.
 
Like I noted way back, what is Tidal doing with profits ?
Maybe this is Jay Z's piggy bank to continue to open new business streams or to slap a huge payback to those "well know artist" that invested in Tidal at the rebirth. When a company cannot afford to stay in business from huge loses, one stars looking at the operating structure. Speculating of course.

Let's see. It took Amazon more than a decade to turn a profit. Tesla may never make a profit. The only reason that Amazon and Apple can cover their streaming costs is they cover it with their other business income. The entire streaming business model is evolving.
 
I'm hoping Apple buys Tidal. Not for the content but for what it would do to the stock....
 
I am on the same boat having subscribed to Tidal earlier this year and having created several playlists in Tidal already.
Here is cheap insurance: open free Spotify account; use soundiiz to copy your Tidal playlists to Spotify. If something happens to Tidal you are covered.
Hopefully if Tidal were to fail Roon will be able to have full integration with other services in the future.
 
I'm hoping Apple buys Tidal. Not for the content but for what it would do to the stock....

That would be pocket change for Apple plus they can gain more subscribers and CD quality resolution that the other competitors (Spotify, Amazon) do not offer yet.
 
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