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WHAT IS TIDAL?

HOW DOES TIDAL BENEFIT FANS?

TIDAL PROGRAMS

HOW TIDAL DISCOVERY WORKS

WHY WAS TIDAL FOUNDED?

HOW DOES TIDAL BENEFIT ARTISTS?

WHERE DO MY MONTHLY SUBSCRIPTION FEES GO?

HOW ARE ROYALTIES CALCULATED?

HOW DOES TIDAL GENERATE REVENUES?

WHERE IS TIDAL AVAILABLE?

CONTENT

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3what is t idal?

TIDAL is a global music and entertainment platform that

brings artists and fans together through unique music and

content experiences and is currently available in 52 countries.

TIDAL has over 46 million songs in our catalog and over

160,000 high quality videos, offering passionate music fans

both a premium and high fidelity CD sound quality, along with

high resolution video, and expertly curated content.

TIDAL has the commitment of artist owners that believe in cre-

ating a more sustainable model for the music industry. The

founding TIDAL artist-owners are Alicia Keys, Arcade Fire (Win

Butler and Regine Chassagne), Beyoncé, Calvin Harris, Cold-

play, Daft Punk, Deadmau5, Jack White, Jason Aldean, J. Cole,

Kanye West, Madonna, Nicki Minaj, Rihanna, Shawn “JAY Z”

Carter, Damian Marley, Indochine, Lil Wayne, and Usher.

WHAT IS TIDAL?

4 how does t idal benefit fans?

TIDAL brings music fans closer to their favorite artists and

gives on-demand access to discover new music from our

massive music and video catalog. TIDAL's extensive catalog

is supplemented by exclusive content, including exclusive vid-

eos and songs featuring the world's top musicians, athletes

and entertainers and up-and-coming independent artists. We

offer not only access to exclusive digital content, but also the

ability to participate in unique real life experiences such as

concerts with established or emerging artists and other di-

rect interactions between fans and their favorite artists. Hu-

man curation is an important part of what we do at TIDAL,

and we have an expert group of tastemakers to help select

and promote emerging artists to a broader audience via our

TIDAL Rising and TIDAL Discovery programs. We also provide

a choice of both premium and HiFi music quality that enables

fans to experience music as the artists intended it to be heard.

HOW DOES TIDAL BENEFIT FANS?

5tidal progr ams

TIDAL PROGRAMS

1. TIDAL X

TIDAL X is a program that supports artists by giving them a

platform to connect with their fans in unique ways, including

one-of-a-kind concert events and artist meet and greets for

TIDAL members to enjoy. With TIDAL’s commitment to help

artists engage and interact with their fans in new ways—the

possibilities are endless for what we can offer fans. TIDAL X

experiences will showcase and support artists of all levels

from established artists to emerging talent.

Fan interactions and geographic data from TIDAL enable TID-

AL X events to be targeted to offer compelling experiences for

true fans. Examples include:

• Tickets for Jack White's “Live at the Fargo Theatre”

were distributed to select fans in North Dakota

• Access to J. Cole's live performance at New York’s

Le Poisson Rouge was determined by the amount of

streams of his music devoted fans generated.

• Participation in the Jay Z B-Sides exclusive TIDAL X

concert was via creation of curated playlists by fans.

• Access to Rihanna’s intimate artist/fan experience

for the “Bitch Better Have My Money” music video

debut was granted to Rihanna’s select fans in the

Los Angeles area.

• The 75 highest streamers of Meek Mill’s music

were invited along with a guest to his BET Awards

6 tidal progr ams

This artist commitment enables us to reward members that engage on

TIDAL, building a community in which fans and artists strengthen their

connection to the music they love.

Pool Party to hang out with Meek and have a chance

to hear his new album, Dreams Worth More Than

Money, before it came out.

• The top 25 Mary J. Blige TIDAL streamers were

given the opportunity to bring a guest and attend a

special Made In America performance by the Queen

Of R&B Soul at the Statute Of Liberty.

• Julian Casablancas + The VOIDZ conducted a se-

cret show at The Dragonfly in Los Angeles for select

TIDAL users.

• The top 20 Jason Aldean streamers in Nashville

were given the opportunity to bring a guest and at-

tend a special live intimate acoustic performance.

TIDAL Rising is a program dedicated to artists from around the

globe who have passionate fan bases and are ready to reach a wid-

er audience with their music. The term “rising” speaks to the artists’

trajectory as well as the way artists across genres and across the

globe can use TIDAL to assist in that process.

On an on-going basis TIDAL curates and features a select group

of artists across genres from around the world, with support from

our artist & label relations, editorial, marketing, promotions, public

relations, and social media teams, to introduce fans to vibrant and

dynamic music they may have otherwise missed.

2. TIDAL RISING

7tidal progr ams

• Prominent Placement On TIDAL - Any album or

single release, video content piece, or playlist or

editorial content piece will be featured on the TIDAL

front page and be allotted a slot in the “What’s New”

section, the most visited placement area on TIDAL.

• Press Photos - Fully-funded and produced pro-

fessional photo shoot for artists to create incredible

hi-resolution images.

• Public Relations Support - PR team will provide

support to ensure good rollout plans are in place

for releases, and will accompany artist to events if

needed.

• Artist Imaging - Provide a professional stylist to

help artist with wardrobe, hair, and makeup, as well

as other aspects such as media training.

• Tour Support - This speaks to the core values of

artists supporting artists. The premise is simple:

TIDAL’s Tour Support is a fund for TIDAL Rising

artists that never has to be re-couped or paid back.

This may include facilitation of everything from van

rentals to equipment rentals to fuel to hotel and any

other needs that may arise for the band on the road.

• Music Videos - TIDAL can provide funding and

help connect artists with great and established

music video directors so that newer artsts can create

incredible and professional music videos.

• Custom Editorial And Video Content - Video and

editorial features that allow fans to really get an in-

depth look at an artist and their musical persona.

• Live Show Bookings or Premium Show Place-

ments - Valuable opportunities to perform for taste-

makers, industry heavyweights, and fans (example;

TIDAL Rising Stage at Made in America Philly & San

Francisco).

TIDAL Rising artists can leverage the following benefits:

8 tidal progr ams

3. TIDAL DISCOVERY

TIDAL Discovery spotlights unsigned artists and enables

them to share their music on TIDAL, with the potential of be-

ing featured on monthly TIDAL playlists and being promoted

among other TIDAL exclusive content. Some of the best music

in the world is the music we never hear, because sometimes

the most talented artists don’t get the break they deserve.

TIDAL Discovery was built to give them that break. This is an

area within TIDAL that is exactly what the name suggests—a

place for TIDAL subscribers to exclusively discover the music

of tomorrow.

9how discovery works

TIDAL’s digital distribution partners DistroKid, Indigoboom,

TuneCore and Record Union provide further choice for un-

signed artists that want to get their music on TIDAL. Through

TIDAL Discovery, artists can select their preferred distribution

partner and royalty structure, making it easy and beneficial for

artists that are not signed to a traditional label to release their

music through streaming.

TIDAL has the following programs in place to help Discovery

Artists achieve success:

HOW TIDAL DISCOVERY WORKS

• Featured Placements: On a weekly basis unsigned

artists who submit their music to TIDAL are hand-

picked for TIDAL Discovery feature placements. These

placements can range from highlighted tracks, to

albums or video content. Every month up to 5 Discov-

ery Artists are selected for placement on the TIDAL

homepage accompanied by an interview or write-up

describing what makes these selections stand out.

• Custom Video Content: Selected TIDAL Discovery

artists will receive an opportunity to have TIDAL shoot

custom video content in an effort to help propel their

budding career even further at no expense. These ex-

clusive videos have ranged from actual music videos

to day in the life pieces that display the determination

needed to succeed in the music industry.

• Live Performance Opportunities: Selected TIDAL

Discovery artists will be tapped to perform at TIDAL

Discovery branded events and festivals.

TIDAL Discovery is a place for TIDAL subscribers to exclusive-

ly discover the music of tomorrow so that it becomes their

music of today. As a music fan - Find the new stars at listen.

tidal.com/discovery.

10 why was t idal founded?

WHY WAS TIDAL FOUNDED?

1. BECAUSE NOTHING SHOULD GET IN THE

MIDDLE OF FANS AND THEIR ARTISTS.

TIDAL was founded with the mission of bringing fans and

artists closer together and creating a sustainable industry

model that values music and artists. By empowering artists

with greater creative control and by operating as a majority

artist-owned company, TIDAL is uniquely positioned to create

more value for fans, and stronger artist-fan connection.

Music consumption is changing. It is shifting away from pur-

chasing and owning music (via CD sales and downloads) to

now accessing music via streaming without a desire to own

physical copies of music. This shift represents an opportunity

to create a better experience for fans by empowering artists

to share what they want, when and how they want to, directly

with their fans. Whether it is through sharing exclusive songs

and videos, or live experiences, TIDAL provides something

unique to fans from their favorite artists.

One of TIDAL's greatest advantage is being able to provide

artists with access to robust data and analytics to facilitate

better direct communication with their fans. From learning

about most popular tracks to geographic information and

time of day their music is being streamed, TIDAL enables

artists to directly engage their fan base through the use of

targeted analytics.

11why was t idal founded?

2. BECAUSE WE BELIEVE IN THE NEXT

GENER ATION OF ARTISTS.

While we're proud to offer a catalogue of over 46 million songs

to TIDAL subscribers, we know the experience shouldn't end

there for music fans: so TIDAL is actively seeking and building

the next generation of emerging artists while helping TIDAL

subscribers easily discover new music along the way.

Through TIDAL Discovery, we are actively engaging in the mar-

keting and promotion of new, unsigned talent, including stag-

ing a series of TIDAL Discovery concerts across the United

States featuring some of the top streaming TIDAL Discovery

artists – because the future of music is only as bright as the

next generation who creates it.

3. BECAUSE DIVERSIT Y IN MUSIC MAT TERS.

We believe in the power of indie artists and that music should

be as diverse as the world of people who listen to it. TIDAL is

a platform that celebrates artist creativity by providing a com-

mercially viable platform to distribute music that isn't always

targeted to mainstream distribution outlets. We believe that

creating art should not be limited to traditional distribution

formulas to drive mass appeal (e.g. shorter song lengths, lan-

guage constraints), but rather artists’ true intention to create

authentic music for their fans.

12 how does t idal benefit artists?

Despite an unprecedented increase in the demand for music over

the past ten years, the actual value of the recorded music industry

has declined by 32% over that time span.

HOW DOES TIDAL BENEFIT ARTISTS?

US $ BILLION

GLOBAL RECORDED MUSIC INDUSTRY REVENUES

T I D A L A N A LY S I S

SOURCE: IFPI

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15

20

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2013 20142008 2009 2010 20112004 2005 2006 2007 2012

13how does t idal benefit artists?

TIDAL believes in valuing music. We are committed to creat-

ing a sustainable model for the future of the music industry,

which includes maintaining value for music, respecting cre-

ativity and encouraging the active participation of artists. A

more sustainable and equitable model for artists, producers

and songwriters that includes paying more for streaming, can

help incentivize support for streaming and create new ways

to ensure music maintains its value . We support full trans-

parency to better educate consumers and stakeholders, and

encourage all music industry stakeholders to embrace open

communication about the cost of their services.

Our artist-owners developed our model so that TIDAL pays

the highest ratio of royalties vs. revenues to music creators

of any streaming service and equal rates are paid to artists

regardless of whether they're signed to a major label, an indie

label, or not signed to a label at all.

TIDAL believes in the value of music and the contributions

of all artists. We provide the highest compensation to artists

and are consistent in our approach regardless of whether an

artist is on a major label or independent. While other services

compensate independent rights owners less than major la-

bels, TIDAL pays all major and independent labels and rights

owners equally. TIDAL also does not pay the labels any fees

that are not disclosed.

14 where do my monthly subscription fees go?

WHERE DO MY MONTHLY SUBSCRIPTION FEES GO?

As seen in the chart above, the $9.99 Premium and $19.99 HiFi

monthly subscription fees go toward paying royalties for mas-

ter recordings, copyrights and various other royalties, as well

as to credit card payment fees and to fund operating expens-

es. Operating expenses are paid from gross profit, including

staff, office space, and content hosting costs.

END USER PRICE NOTE: PRICE CHARGED TO THE END USER

$ 0.40$ 0.50$ 0.60

$ 6.20

$ 2.30

$ 0.50$ 0.50

$ 1.20

$ 12.50

$ 5.30

Gross Pro�t to fund required IT-maintenance and development costs alongside additional operating expenses

Master recording royalties

Rightsholder’s fee:Performance rights

Rightsholder’s fee:Music reproduction rights

Payment processing fees to credit cardand online payment providers

$9.99 $19.99

PREMIUMWEB/ ANDROIDCREDIT CARD *

HIFIWEB/ ANDROIDCREDIT CARD *

15where do my monthly subscription fees go?

As with other platforms, in some instances, what fans pay for

include fees charged by third parties that are out of our con-

trol. For example, when someone subscribes to TIDAL via the

iPhone app, Apple charges a 30% administrative fee. Similar to

other apps, this is why TIDAL prices are higher within the app

store ($12.99 and $25.99 if subscribed to in-app, versus the

lower cost of $9.99 and $19.99 if subscribed to via TIDAL.com.)

There are a number of variables that impact an artist's royalty

payments, including the following:

END USER PRICE NOTE: PRICE CHARGED TO THE END USER

$ 3.90

$ 0.50

$ 0.80

$ 6.20

$ 1.50

$ 7.80

$ 0.50

$ 1.60

$ 12.50

$ 3.60

$12.99 $25.99

PREMIUMIOS APP STOREAPPLE BILLING **

HIFIIOS APP STOREAPPLE BILLING **

Gross Prot to fund required IT-maintenance and development costs alongside additional operating expenses

Master recording royalties

Rightsholder’s fee:Performance rights

Rightsholder’s fee:Music reproduction rights

Payment processing fees to credit cardand online payment providers

• Location from which people are streaming an artist's

music

• TIDAL's total number of paying subscribers

• Relative premium pricing and currency value in different

countries

• An artist's royalty rate with his/her label

16 how are royalties c alcul ated?

The formula below explains the Tidal royalty system in more detail:

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 royal-

ties 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 pay outs 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 rev-

enues paid to rights holders are not diluted by free streams

and rights holders are compensated.

17how are royalties c alcul ated?

4. ARTIST’S ROYALT Y R ATE

This 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 re-

ceive from their respective labels and publishers (some labels

cross collateralize streaming income against unrecouped re-

cording 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 may be applied by such partners) via the

TIDAL Discovery platform.

3. ~75% TO MASTER AND PUBLISHING OWNERS

TIDAL negotiates our royalty economics with the record labels

and music publishers in each territory where we operate. Our

current payment structure calls for us to pay out up to 75% of

the service revenues to rights holders (including both master

recording rights holders as well as music publishers).

18 how are royalties c alcul ated?

HOW DOES ALL OF THIS WORK OUT IN PR AC TICE?

The chart shows average royalty payments for albums in

terms of popularity (top 10, top 11-50 and top 51-100) for 1

million subscribers:

The bars and $USD figures are the total royalties to be paid

out to rights holders for albums for 1 million subscribers on

TIDAL. The average monthly gross royalty payments for the

top 10 album on TIDAL are ~$52.5k, compared to ~$15.0k on

average per album positioned between 11-50 in terms of pop-

ularity, and ~$7.5k per albums for those between the top 51-

100 places.

Even though we are currently generating millions of dollars

in royalties for rights holders for the top artists each year, we

are just getting started and expect to earn artists and rights

holders far more as we grow our subscriber base.

~$ 52.5K

11- 5 0 A V E R A G E

~$ 15.0K

51-10 0 A V E R A G E

~$ 7.5K

050

0010

000

1500

020

000

ALBUM PAYOUTPER MONTH (AVERAGE)

TOP PLAYED ALBUMS T O P 10 A V E R A G E

19how does t idal gener ate re venues?

TIDAL generates revenues by charging users a subscription

fee. TIDAL currently has 2 subscriptions tiers (and a subscrib-

er can try either with a 30-day free trial).

1. PREMIUM FOR $9.99 / MONTH

For $9.99 per month, TIDAL's Premium tier gives users unlim-

ited music across multiple devices including smartphones,

computers and tablets, as well as access to exclusive TIDAL X

events. TIDAL Premium subscribers can also create playlists

and download songs to their devices for offline listening – all

without intrusive advertisements.

2. HIFI FOR $19.99 / MONTH

TIDAL's HiFi tier gives subscribers all the same great content

and experiences as a Premium subscription, except music is

delivered in lossless, CD quality (1411 kbps vs. 320 kbps for

standard streaming).

HiFi streaming delivers an uncompressed sound file, which

means that you can hear every instrument and every note – as

the artist intended. This tier costs $19.99 per month.

HOW DOES TIDAL GENERATE REVENUES?

20 how does t idal gener ate re venues?

3. DISCOUNT PROGR AM FOR STUDENTS

TIDAL offers a special discount program for students, in or-

der to provide access to both our tiers at affordable prices.

Student benefit from 50% discount on our subscription tiers.

4. DISCOUNT PROGR AM FOR FAMILIES

TIDAL offers a special discount program for families, in order

to provide an affordable access to all family members who

want to enjoy their own favorite music. Each additional family

member is offered a 50% discount on both subscription tiers.

The family package is limited to 5 members.

P R E M I U M H I F I3

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60

09

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12

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15

00

KBPS

SOUND QUALITY CHART

21where is t idal avail able?

TIDAL is currently available in 52 countries with plans for fur-

ther international expansion soon! As we continue to grow,

we'll be able to deliver more great content and TIDAL X events

for our subscribers, as well as continue to contribute to the

health of the music industry by growing the amount of royal-

ties we pay to music creators.

WHERE IS TIDAL AVAILABLE?

GEOGRAPHY