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404 Media

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Tidal Says It Won’t Pay Royalties for AI-Generated Music
Matthew Gault · 2026-06-30 · via 404 Media

Music streaming service Tidal announced it won’t pay royalties for AI-generated music in an email to users and an announcement on its website published Monday. “Tidal’s priority is ensuring royalties go to original works directly produced, written, and performed by people,” the announcement reads. “We will therefore not knowingly attribute royalties to music we identify as wholly AI-generated.”

Like much of the internet, music streaming services are awash in AI-generated slop. Spotify promised to fight AI spam with labeling and filtering but also embraced the broader trend of AI music. AI-generated bands like The Velvet Sundown and Breaking Rust have millions of listens on Spotify and make the service money. In May, Spotify announced a deal with Universal that would let fans create “covers and remixes of their favorite songs.”Soon Spotify customers will be able to push a button and discover what Metallica would sound like if it were a reggae band

Tidal is trying something different. The streaming service isn’t a giant in the field — Apple Music, YouTube, and Spotify dominate the charts — but it’s built a reputation by collaborating with artists, giving them a bigger cut of the streaming profits, and focusing on delivering high quality versions of audio. Tidal is the streaming service for listeners obsessed with bit-rate and FLAC. It’s for people who have $200 digital-to-analog converters next to their computer.

The company said it won’t pay for “wholly” AI-generated music but it also said it won’t remove AI-tainted music from the platform entirely. Like Spotify before it, Tidal said it’s going to work to identify the AI slop on its platform, label it, and hold AI-generated music to a “higher standard of content integrity.” Spotify said something similar last year, but there are still plenty of unlabeled AI-generated tracks on the platform.

Tidal also said it won’t remove AI-tainted music entirely. “Artists should have the freedom to create with AI tools, and listeners should have the autonomy to choose the type of content they consume,” it said. As of this writing, The Velvet Sundown and Breaking Rust are both live on Tidal. Breaking Rust’s bio identified it as AI-generated country music, but The Velvet Sundown had no bio at all.

“Tidal will not allow music that is 100% AI-generated to be monetized. No royalties will go to such releases, nor will AI-generated uploads be eligible for direct-to-fan sales,” the company said in an email to its users.

It elaborated on its website. “Starting today, AI-generated music will not be monetizable,” it said. “We are only in the beginning of the era of AI-generated music. We acknowledge the ongoing debate regarding whether certain AI-generated music (e.g. AI-generated music developed from fairly and properly licensed models) should be entitled to earn royalties. This debate will continue as the technology advances and rightsholders and AI music platforms develop licensing models.”

It’s unclear if The Velvet Sundown and other bands like it will keep making money on Tidal. The company told 404 Media that it’s working with an external partner to manage detection and that “wholly AI-generated” was defined as a song where every component of the track was made using generative AI. “Our detection tools will determine how specific tracks and artists will be treated from July 15,” Tidal told 404 Media in an email. “The impact to royalties comes into effect starting July 15 so we don't have numbers to share just yet.”

On June 28, the day before Tidal’s announcement, The Velvet Sundown released a cover of Dolly Parton’s “I Will Always Love You” on Spotify and Tidal. It’s atrocious and it’s not labeled as AI-generated on either service.

“We exist to confuse music journalists, comfort robots, and help Spotify executives sleep at night,” says the frontpage of The Velvet Sundown’s website. “We were basically built for it, engineered to fill playlists, avoid royalties, and haunt your Discover Weekly like a ghost with good taste. Is it art? Is it a loophole? Either way, it streams beautifully."

Update 6/29/26: This story was updated to include comments from Tidal.

About the author

Matthew Gault is a writer covering weird tech, nuclear war, and video games. He’s worked for Reuters, Motherboard, and the New York Times.

Matthew Gault