Tidal Revamps Subscription Plans to Attract Broader Audience and Bolster Artist Support
Tidal, the streaming music platform long favored by audiophiles and boasting a strong connection to the artist community through figures like Jay-Z, is undergoing a significant transformation of its subscription offerings. These changes are geared towards broadening its user base and reinforcing its commitment to equitable artist compensation in an increasingly competitive streaming landscape.
For years, Tidal differentiated itself by requiring a paid subscription for all access. Now, in a major departure, Tidal is introducing a free, ad-supported tier, albeit currently exclusive to subscribers in the United States. This free plan grants access to Tidal’s comprehensive music catalog and curated playlists, but users should expect "limited interruptions," indicating the presence of advertisements. While it opens the door to a wider audience, the streaming quality on the free tier is capped at 160 kbps, a standard bitrate that will likely appeal to casual listeners but might not satisfy discerning ears accustomed to higher fidelity audio.
Beyond the introduction of a free option, Tidal has also revamped its existing paid subscription tiers, emphasizing improved value and enhanced audio quality. The standard plan, previously the entry-level paid option, receives a significant upgrade. Now, for a subscription price of $10 per month, users gain access to lossless and high-resolution audio, reaching bitrates of up to 1411 kbps. This represents a substantial leap in audio fidelity compared to standard compressed streaming formats. Furthermore, the standard plan includes offline download capabilities, allowing users to enjoy their favorite music without an internet connection. It also unlocks access to Tidal Connect, a feature that enables seamless casting of music to external devices, such as speakers and amplifiers, directly from a smartphone. This is a convenient feature for users who prefer listening through dedicated audio equipment. Finally, the standard plan unlocks "My Activity," a personalized feature that provides insights into the user’s listening habits, allowing them to track their favorite artists, genres, and overall musical preferences.
The HiFi Plus tier, Tidal’s premium offering, is also getting a boost. Priced at $20 per month, it continues to cater to the most demanding audiophiles, providing access to Tidal’s highest-quality audio content, including tracks encoded in immersive formats like Dolby Atmos and Sony 360 Audio. These formats offer a more spatial and enveloping listening experience, requiring compatible equipment to fully appreciate. The HiFi Plus tier also retains exclusive access to Tidal’s Master Quality Authenticated (MQA) recordings. MQA is a proprietary audio format designed to preserve the original master recording’s sonic characteristics, delivering a listening experience as close as possible to the artist’s intended sound. Tidal emphasizes that MQA recordings are best enjoyed on sound systems capable of handling them, positioning this feature as a perk for dedicated audio enthusiasts.
In addition to superior audio quality, the HiFi Plus tier offers enhanced insights within the "My Activity" feature. Users can track how much of their subscription fee is directly translated into payments for the artists they support, reinforcing Tidal’s commitment to artist compensation. The HiFi Plus tier also includes access to exclusive content and promises "future features," suggesting that Tidal plans to continue enhancing the value proposition of its premium offering.
Tidal’s new subscription tiers are not solely focused on attracting listeners. The company is also actively working to rebuild trust within the music industry after past controversies, including allegations of inflating streaming numbers for certain artists. As part of its revamped subscription structure, Tidal is introducing monthly direct-to-artist payments, complementing traditional streaming royalties. This initiative aims to provide artists with a more immediate and transparent stream of revenue. Furthermore, beginning in 2022, Tidal will move away from aggregating royalties from its HiFi Plus subscribers. Instead, it will allocate royalties based on the actual streaming activity of individual subscribers, ensuring that artists are directly compensated for the music listened to by their fans.
Tidal emphasizes that these changes are designed to foster a stronger connection between listeners and the artists they love. The company aims to make subscribers feel that their money "goes directly to your own favorite artists as opposed to the industry accepted method of allocating it to the most popular artists.” To facilitate these payments, Tidal is partnering with Square, Cash App, and PayPal to ensure that artists receive their compensation quickly and efficiently. It is relevant to note that Square, led by Jack Dorsey, acquired Jay-Z’s stake in Tidal earlier this year and now holds majority ownership of the company, further solidifying the connection between Tidal and the financial technology sector.
For a long time, Tidal’s main selling point has been offering top-tier audio quality in the streaming music market. However, with competitors like Apple Music and Amazon Music Unlimited now offering hi-fi streaming at a similar price point, Tidal recognized the need to diversify its subscription services and appeal to a wider audience. This strategic move is essential for attracting new users and remaining competitive in a rapidly evolving industry.
Moreover, Tidal’s renewed focus on artist compensation represents a significant differentiator. While other streaming services have faced criticism for their royalty structures, Tidal is actively seeking to create a more equitable model. This approach could resonate with music fans who want to support the artists they love in a more direct and transparent manner.
In the context of the broader streaming market, Tidal’s changes position it as a challenger to established players like Spotify. Spotify, while dominant in terms of user base, has recently focused its efforts on expanding into podcasting and acquiring exclusive content. While Spotify announced plans for a hi-fi tier earlier this year, it has yet to deliver on this promise for its Premium subscribers. This delay gives Tidal an opportunity to capitalize on the growing demand for high-quality audio and attract audiophiles who have been patiently waiting for Spotify to catch up. Tidal can credibly claim to be the first major streaming service to offer a comprehensive suite of high-fidelity options, giving it a competitive edge. Ultimately, these changes suggest Tidal is not just trying to survive in a competitive landscape, but to redefine what a music streaming service can be: a platform that genuinely values both the listening experience and the artists who create the music.
