Tidal Bans Royalty Payments for AI-Generated Music

No Royalties for Algorithmic Content

In a policy update announced this week, Tidal declared it will no longer pay out royalties for tracks generated wholly by artificial intelligence. The streaming platform is choosing to prioritize the livelihoods of human artists over algorithmic content farms, even as most music tech giants embrace the generative AI boom.

According to the platform's new guidelines, Tidal will still allow AI-generated music on its service, acknowledging that listeners should retain the autonomy to choose the type of content they consume. However, the company is implementing strict guardrails to ensure that AI does not dilute the economic pool for legitimate musicians, explicitly stating that its priority is directing royalties to original works that are directly produced, written and performed by actual human beings.

Mandatory Labeling and Detection

To guarantee that users know exactly what they are streaming, Tidal is rolling out a mandatory labeling system. Starting in mid-July, the platform will attach a highly visible icon to any content identified as entirely AI-generated.

As AI-detection methods become more reliable, Tidal plans to expand the tag to content that is substantially AI-generated. The company stated that the responsibility to identify and tag AI-generated content should not rest with Tidal alone, and that it expects content distributors to identify AI-generated content before it reaches the platform.

Zero Tolerance for Fraud

The updated policy goes beyond financial restrictions by aggressively targeting fraudulent activity that has become a hallmark of the contentious generative audio space. Tidal announced a zero-tolerance stance against synthetic music that exploits the name or likeness of real individuals. Any AI content designed to deceive listeners, interfere with authentic audiences, or manipulate the royalty system through high-volume bot uploads will be swiftly blocked or removed from the platform.

Independent creators utilizing the Tidal Upload feature will be held to the same stringent standards. If the platform suspects that an independently uploaded track is entirely generated by AI, that content will be publicly tagged and blocked from direct-to-fan monetization.

An estimated $4.6 billion in annual artist revenue could be lost to AI-generated music by 2028, according to a recent economic study conducted by CISAC and PMP Strategy with participation from Deezer. The competing French streaming service said AI music represents a colossal, even critical, challenge for the music creation sector as a whole.