The rapid advancement of artificial intelligence (AI) in recent years has been transforming all industries, from healthcare and real estate to marketing and manufacturing, and guess what, the music sector is no exception. Among AI’s most intriguing innovations in this sector is the ability to create music that rivals human compositions, and this of course has both advantages and disadvantages.
While this technology opens new creative possibilities for artists, it also poses significant challenges for existing music catalogs. A study by CISAC (the International Confederation of Societies of Authors and Composers) predicts that AI-generated music could constitute 20% of traditional music streaming revenues and 60% of music libraries’ revenues by 2028.
The potential disruption raises questions about the value of original music catalogs and how stakeholders can navigate this shifting landscape. Here’s what you need to know.
The Rise of AI-Generated Music and Its Implications
AI-generated music leverages machine learning algorithms and technology to create songs, symphonies, and soundscapes that resemble human-driven creations. In this context, companies like OpenAI’s Jukebox, AIVA, and Amper Music have developed tools capable of producing compositions in various genres, often tailored to specific emotional tones or themes. These tools have gained popularity among content creators, marketers, and even music producers seeking affordable and customizable tracks. However, they’ve also brought about controversies and debates surrounding what ‘true’ art is really about, and whether AI-generated music should be considered original or not.
The appeal of AI-generated music lies in its efficiency and cost-effectiveness. Unlike human composers, AI can produce music rapidly and without the ongoing costs associated with royalties or performance rights. Naturally, this accessibility has fueled concerns about the oversaturation of music markets, and the potential dilution of the value of human-created catalogs.
Increased Competition
The popularity of AI-generated music introduces an unprecedented level of competition for traditional music catalogs. With the ability to produce thousands of tracks in a fraction of the time it takes human creators, AI can flood streaming platforms, social media, and commercial spaces, and this could in turn reduce the demand for older or niche catalogs, thus impacting their valuation.
Shifting Revenue Streams
Music catalogs derive significant value from royalties generated through streams, licensing, and placements in media, as we know. But as AI-generated music becomes more prevalent, advertisers, filmmakers, and content creators might opt for convenience and use AI tracks over licensed songs, reducing royalty income for traditional catalogs. This shift could disrupt the predictable revenue streams that influence catalog valuations.
Perception of Authenticity
Authenticity remains a cornerstone of music appreciation, and fans value the emotional and cultural significance of songs created by human artists, making them feel connected and that they can relate to the artist they love. However, if AI compositions begin to dominate the charts or become indistinguishable from human-made music, the unique appeal of older catalogs could diminish, leading to a reassessment of their worth.
Legal and Copyright Challenges
AI’s reliance on existing music data to train algorithms introduces even more complex legal and ethical issues. If AI models infringe on existing, copyrighted material, disputes may arise, potentially impacting catalog owners whose works have been used without permission. Furthermore, establishing the originality of AI-generated music might further complicate licensing processes and affect market dynamics.
Leveraging the Emotional and Historical Value of Music
Original music catalogs, as we’ve mentioned before, hold emotional and historical significance that AI-generated tracks cannot possibly replicate. Catalog owners can emphasize the unique storytelling, cultural relevance, and human artistry embedded in their collections, something that AI-generated music can’t really offer. These elements can be marketed as premium offerings for projects requiring authentic emotional depth, such as films, documentaries, and brand campaigns.
Integrating AI into Catalog Management
Before we start viewing AI as a threat and nothing more, we need to acknowledge its advantages, as well. Catalog owners can use it as a tool for optimization, as AI can analyze listening trends, predict future hits, and identify underutilized tracks within a catalog. These insights can enable strategic decisions about licensing, re-releases, or remastering projects, ensuring maximum revenue potential.
Enhancing Licensing Agreements
To safeguard and protect the historical and emotional value of traditional catalogs, stakeholders can negotiate more aggressive licensing agreements. This includes exclusivity clauses, which prevent AI-generated tracks from directly competing with licensed songs in specific media or advertising campaigns. Additionally, catalog owners might explore partnerships with AI developers to ensure their music is not used without proper compensation.
Advocating for Stronger Copyright Protections
The rise of AI-generated music highlights the need for updated copyright laws that address the complexities of AI creation. Catalog owners would benefit from collaborating with policymakers, industry organizations, and legal experts to establish clear guidelines for the use and protection of original works in an increasingly AI-driven landscape.
Diversifying Revenue Streams
To mitigate the risks associated with AI competition, music catalog owners can diversify their income sources, through various opportunities:
- Licensing music for emerging platforms like virtual reality and gaming.
- Offering exclusive content through NFTs or blockchain platforms.
- Creating derivative works, such as remixes, instrumentals, or acoustic versions, to refresh catalog offerings.
Educating Consumers and Industry Players
Raising awareness about the value of human-created music can counteract the unwanted effects of using AI to generate music. To this end, catalog owners can launch campaigns that highlight the artistry and effort behind iconic songs, fostering appreciation among fans and industry professionals alike.
What’s Next?
While AI-generated music poses challenges, it also presents opportunities for innovation. For instance, AI tools can help catalog owners discover untapped potential within their collections, and by analyzing metadata, they can identify tracks suitable for specific uses, such as mood-based Spotify playlists or regional markets. This capability can unlock new revenue streams and broaden the reach of existing catalogs.
Moreover, collaborations between AI developers and music catalog owners could result in creations that combine the authenticity of legacy music with the efficiency of AI technology. Such partnerships could set a precedent for how AI and human artistry coexist in the music industry.
Ultimately, the interplay between AI-generated music and traditional catalogs will depend on how the industry navigates this technological evolution. With proactive strategies, music catalog owners can thrive in an AI-influenced world, ensuring legacy music remains relevant and valuable for generations to come.
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