This week we're talking about AI, but not only! Actions have been put in place to frame and ensure the proper development of companies within the industry. We present it all here!
#1. Deezer launches its AI feature
On July 15th, Deezer announced the beta launch of its new “Playlist with AI” feature, accessible to only 5% of its subscribers, randomly selected. These users can now create personalized playlists using simple text descriptions, such as moods, genres, decades, activities, or any other description imaginable.
Deezer already uses AI to improve recommendations and enhance discoverability with features like Flow and SongCatcher. However, there are still some challenges posed by low-quality AI-generated content. In particular, former CEO Jeronimo Folgueira stressed the importance of maintaining high-quality content while exploring the potential of AI.
For some time now, Deezer has been on the right track. The platform is undertaking a number of actions that are welcomed by users and artists alike. The recent launch of its Universal Music Group-approved artist-centric payment system in September 2023 has enabled the platform to remove over 26 million binding tracks.
#2. Indie labels launch the newest music industry think tank ORCA
Independent record labels join forces to launch ORCA (Organization for Recorded Culture and Arts), a global research center on music’s economic, social, and cultural impact. ORCA, officially launched on July 17, bills itself as the first “think tank” of its kind for the global music ecosystem. It aims to develop and promote research and data to demonstrate the significant value of music.
ORCA's founding members include influential labels such as Because Music (Paris), Beggars Group (London) or City Slang (Berlin). This initiative relies on the recognition that art and commerce can coexist. ORCA aims to help independents develop a collective intelligence to support and protect cultural investments, it invites policymakers, business leaders, and communities to understand the importance of music as an economic ecosystem. By providing evidence-based research, the think tank aims to give stakeholders the tools to make music more inclusive and enhance the value of music ecosystems.
#3. TikTok and Eventbrite teaming up
TikTok is reinforcing its strategy in live events by teaming up with Eventbrite. This collaboration enables creators on TikTok to directly embed links to Eventbrite events in their videos, allowing users to purchase tickets from the app. This integration, already available in all countries where TikTok and Eventbrite operate, focuses on public events’ promotion of public events.
Among TikTok's recent partnerships, we can also mention Ticketmaster, AXS, or CTS Eventim. This strategy illustrates its growing influence in the live entertainment arena. Beyond innovations in ticketing, TikTok has also made significant advances in music-related investments. Despite ongoing legal challenges, the app maintains a strong position, even in the face of the rise of competing platforms that are gaining ground among music listeners in the US.
#4. Middle-class artists surge: hit 1M-10M streams, Luminate Report
It’s finally here! One of Luminate's latest Mid-Year Report highlights is the emergence of a growing middle class of artists in the music industry. In 2024, there will be a significant increase in the number of artists with on-demand audio streams between 1 million and 10 million, as well as those between 10 million and 50 million. This growth showcases the strengthening of this intermediate bracket between obscurity and superstardom.
The report also highlights that a significant majority (62.1%) of artists in the first stream category benefit from independent distribution, underlining the growing autonomy in the industry. Warner Music Group in particular is showing a growing interest in this class of artists, seeking to strengthen its strategic presence in this dynamic segment.
In addition, consumer trends reveal an increase in streams from paid subscriptions, altering the traditional landscape where advertising revenues dominate. Overall, the report illustrates how this middle class of artists is playing a growing role in the music landscape, influencing the strategies of distributors and record companies, while highlighting evolutions in consumption patterns and listener preferences.
#5. EU designates six “Guardians” under the Digital Markets Act
The European Union has identified six tech giants—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—as "gatekeepers" under the Digital Markets Act (DMA). These companies, providing 22 core platform services like Google Search, Facebook, and TikTok, now have six months to comply with DMA regulations.
This designation follows a 45-day review and requires these firms to ensure fair competition and greater freedom for users. The EU's decision includes pending investigations into some services and potential penalties for non-compliance, emphasizing the importance of regulatory adherence in the digital marketplace.
