The music industry is buzzing about Universal Music Group's CEO Sir Lucian Grainge's call for a new streaming payout model. Sir Lucian wants a more "artist-centric" model that fairly rewards artists and rightsholders for their music streamed on services.
UMG has partnered with Tidal to explore this new model and harness fan engagement to generate more value for every type of artist. The research will look at how different economic models could lead to more subscriber growth, deeper retention, and better monetization of fandom. Sir Lucian emphasized the importance of a model that supports all artists, regardless of genre or label size. Tidal's Lead Jesse Dorogusker also stressed Tidal's commitment to artists and finding fairer ways to get them paid.
UMG's Chief Digital Officer, Michael Nash, believes that innovation is necessary for a vibrant and sustainable future in music streaming. The partnership between UMG and Tidal will focus on enhancing the artist-fan relationship and improving the streaming economics for the benefit of everyone involved.