Alas, as in the past, the musician gets the money last.
So, basically TIDAL is bleeding cash and using the artists' already earned royalties to fund the company. This will probably be the undoing of TIDAL's current ownership group. They won't be able to pay the accumulating interest on six months' worth of unpaid royalties--together with the legal bills they will owe for defending against the breach of contract cases that will be filed. They may also be liable for the attorneys fees the record companies and artists incur in collecting their earned but not paid royalties. The one asset they will have to pay their debts will be their equity positions in TIDAL. It is a good product that will probably survive with a different mix of ownership.
So, basically TIDAL is bleeding cash and using the artists' already earned royalties to fund the company. This will probably be the undoing of TIDAL's current ownership group. They won't be able to pay the accumulating interest on six months' worth of unpaid royalties--together with the legal bills they will owe for defending against the breach of contract cases that will be filed. They may also be liable for the attorneys fees the record companies and artists incur in collecting their earned but not paid royalties. The one asset they will have to pay their debts will be their equity positions in TIDAL. It is a good product that will probably survive with a different mix of ownership.