There's been a lot of movement in the music industry this week; UMG and TikTok made up, AI is still at the heart of the debate and the “superfan” model is getting called into question…
#1. After 3 months, UMG and TikTok have reached an agreement
Some news from UMG and TikTok! The 2 companies recently resolved their licensing dispute with a new multi-dimensional agreement. The return of UMG's vast catalog to the TikTok platform, for the benefit of their artists, songwriters and labels, is now complete. Their new contract addresses issues such as fair compensation for artists, the removal of AI-generated music, the development of an AI algorithm that will protect human artistry, and the online safety of artists and their fans.
In addition, thanks to the rapid development of technology, TikTok is said to be committed to further improving artists' promotional campaigns. Enthusiastic about deepening their collaboration to improve the experience of artists and fans on TikTok highlight the importance of the Chinese giant in engaging and promoting music in the future.
#2. UK lawmakers call artists to be protected from deep fakes
The All-Party Parliamentary Group on Music, funded by UK Music, is calling for regulations to protect human music creators from AI-generated content in the music marketplace. Indeed, their report highlights concerns about unauthorized AI-generated content, including artist deep fakes.
The UK lawmakers are calling for new laws to protect artists, with a transparent labeling of AI-generated content and requiring AI developers to obtain permission from copyright holders to use the content in their prompts. While some of the principles align with regulations in other jurisdictions, such as the European AI Act, the report seeks to ensure that human creativity is fully protected in the UK music industry.
#3. (In)famous Fandom
As the music industry moves away from traditional streaming models, it is increasingly important to cultivate and harness the power of dedicated fan bases. These 'superfans' are increasingly at the heart of the industry's growth and sustainability strategies,
Despite the potential for superfans to generate significant revenue streams, there is always some pretty important gap between superstar artists like Taylor Swift and smaller, independent artists. Incidentally, Social Media and streaming platforms make it increasingly difficult for emerging artists to break through and capture the attention of an audience overwhelmed by options.
Building real communities, meaningful connections and enabling fans to play a role in artists’ careers are essential elements of any strategy. While there is no doubt that 'superfans' represent a valuable asset for artists seeking financial stability and longevity, questions remain about the scalability and inclusivity of this model.
#4. The latest data on Live’s impact on Streaming
Luminate and Billboard collaborated on an analysis to explore the correlation between live music events and streaming volumes. For instance, during event weeks, there is a median increase of +42% in the U.S. DMA On-Demand Audio Streaming.
Interestingly, the genre of the event appears to influence the extent of this growth, with electronic/dance events showing the highest median growth of 143%, followed by rock at 63%, and pop at 53%. This data underscores the significant impact of live music on streaming consumption, with streaming serving as a crucial predictor of ticket sales for artists.
#5. Funding for the music industry has fallen
In April 2024, music industry funding dropped significantly, recording a 77.4% year-on-yeardecline according to DMN Pro's Music Industry Funding Tracker. This slowdown can be seen in the reduced number of funding rounds, with the year-to-date total approaching $1.3 billion, well below the norm seen in the early 2020s.
There are several reasons for this slowdown, including higher interest rates and a cooling in the NFT sectors, with Superlogic, formerly known as OneOf, Web3, and AI, in particular, receiving funding. However, despite the drop in April, there is still a lot of money flowing into the music industry, and May may mark the start of a recovery compared to the same period in 2023.
