That week started off strong! With the news of the lawsuit coming on Udio and Suno, there’s a lot to keep an eye on. But they’re not the only hot topics of the moment.
#1. The Udio/Suno lawsuit is finally there
We were expecting it, here it is. The Recording Industry Association of America (RIAA) filed a lawsuit against AI music companies Udio and Suno on Monday. It’s a pretty big step since the RIAA is representing major labels, including the three majors (specifically Sony Music Entertainment, UMG Recordings, Inc., and Warner Records, Inc.).
What does this mean? The lawsuit alleges that the AI companies have been copying music and artists’ work without consent and on global copyright infringement. If you’re looking for more details on the allegations, Digital Music News broke them down for you here. Of course, you’ll find all arguments from the plaintiffs’ side regarding the need for collaboration and licensing before starting the work on AI-generated content.
Interestingly, the response from the companies went from “we’re not using these tracks to train our AI algorithms” to “we’re merely listening to it, not copying”. Many key music industry players have joined and rallied with the plaintiffs, and the defense is struggling to find a strong discourse. The lawsuit will be a definite landmark for the work and collaborations to come between the music industry and GenAI (although solutions are already being developed and collaborated on).
#2. YouTube is looking to license the music to train their AI
Looking on the bright side, there are some Tech companies that are making the right moves to collaborate with the music industry regarding training AI with copyrighted content.
Indeed, YouTube is negotiating with major music labels—Sony, Universal, and Warner—to license music for training AI tools. That would mean using popular artists' music with their permission. This agreement seeks to offer upfront payments to artists for their participation, encouraging a broader use of AI in music creation. Despite the current main story, AI and human creativity have some bright days ahead of them. The music industry is cautiously optimistic about monetizing copyrighted content through AI, looking to balance innovation with respect for artists' rights.
#3. Tidal reviews on spatial audio
Tidal is revamping its audio formats, dropping support for Master Quality Authenticated (MQA) and 360 Reality Audio in favor of HiRes FLAC and Dolby Atmos starting as soon as July 24th. They will now default to FLAC for stereo and Dolby Atmos for immersive sound.
This prioritizes access and cost, as FLAC is open-source and doesn't require third-party licensing, while Dolby Atmos has broad device compatibility and artist adoption. Tidal will replace MQA files with high-quality FLAC versions for users, and 360 Reality Audio files will be unavailable for streaming. This update follows Tidal's recent subscription price reduction and consolidation of its HiFi plans.
#4. Opportunities in music podcasts
Moving on to the next analysis, music podcasts are trusted to be an opportunity that still has to be pushed. According to MIDiA's report, music is the most preferred podcast genre globally, with 51% of listeners favoring it. That means a strong potential for DSPs to enhance cross-format recommendations and engage audiences more effectively.
Music podcast listeners are also more receptive to advertisements. Despite high demand in markets like Turkey and China, there is still room for growth in English-speaking regions. For the music industry to capitalize on this, record labels must recognize the brand value and audience engagement potential in podcasting.
#5. Some news about Believe
After the announcements this year, Denis Ladegaillerie’s consortium, including EQT X and TCV, now owns 94.99% of Believe following a takeover bid at EUR €15 per share. Amounting to approximately €1.43 billion ($1.54 billion), the consortium is set to advance its goal of making Believe a global leader in independent music. The recent changes come after Warner Music Group's competing $1.8 billion bid fell through.
As part of the new ownership structure, former Shazam CEO Andrew Fisher has joined Believe’s board, while Michael Kalfayan and Nicolas Brugère have been appointed as observers. Despite the majority acquisition, 5.01% of Believe’s shares remain publicly traded on Euronext.
