How is Tidal’s payout structure for artists different from competitors such as Spotify?

JAY Z: I know everyone thinks “new company, main business competitor is Spotify” but we’re really not here to compete with anyone, we’re actually here to improve the landscape. If just the presence of Tidal causes other companies to have better pay structure, or to pay more attention to it moving forward, then we’ve been successful in one way. So we don’t really view them as competitors. As the tide rises, all the boats rise.

SCHLOGEL: The royalty rates will be higher than other services. In addition to that, there won’t be that free tier that’s been depressing the recorded music industry, and frankly been a part of what’s been driving the downfall of the recorded music industry, is that free consumption. Music is not free, fundamentally. Someone came in and produced that beat, someone came in and sang that song, someone wrote that song. Someone came in to clean the studio afterwards. There is an entire ecosystem around this, and we’ve somehow come to believe that it’s okay to pay hundreds for consumer electronics but to pay nothing for the music that helps sell it. It’s around the education process, with that there will higher royalties. And then another point that I want to touch on that’s really important philosophically, not just from a dollars and cents perspective, is the equity ownership. All artists who come in — and this is an open platform, an open invitation — will participate in the equity upside. And that is important, too, because of that participation in the process, by having a board seat, by actually being an owner in this. It’s a different type of involvement.

What exactly were the contents of the document that was signed during the press conference?

JAY Z: Just a declaration that we’re going to work really hard to improve what’s going on in the pay system as we know it. You guys may have seen some of the stats like, Aloe Blacc had a song that was streamed 168 million times and he got paid $4,000. For us, it’s not us standing here saying we’re poor musicians. If you provide a service, you should be compensated for it. And not just artists — just think about the writers and the producers. Like an artist can go do a Pepsi deal or something — I shouldn’t have singled out Pepsi — but they can go get an endorsement deal somewhere and you know, go on tour and sustain themselves, it helps their lifestyle. But what about the writers who do that for a living? The producers? That’s it for them. What about Jahlil Beats, who produced Bobby Shmurda’s “Hot N**ga”? He went on to get a $2 million record deal or whatever, and Jahlil Beats just put the song out. So he wasn’t compensated for that song at all. There are dozens — more than dozens, there are thousands and thousands of those sorts of stories of someone who worked at their craft, worked really hard at the studio, they did their job and people loved it and consumed it and they just went home. I think we’ll lose a lot of great writers in the future because you have to do something else, because you can’t sustain a lifestyle, and I think that’s a shame. That someone has that talent and just isn’t being compensated because someone needed a business to profit off of their work. And we’ve seen that time and time again, we’ve seen it time and time again. Companies that pretend to care about music and really care about other things — whether it be hardware, whether it be advertising — and now they look at music as a loss leader. And we know music isn’t a loss leader, music is an important part of our lives.

Full transcript of talk at NYU: http://watchloud.com/jay-z-spoke-at-nyu-about-tidal/