The impact of AI on musicians and the transformation of the music industry, changing the way artists create and businesses operate. Discover its impact on the production, marketing and growth strategies of today’s music scene.
The impact of AI on musicians and the music industry is growing
by Mathilde Neu via Directory
This week we take an in-depth look at the state of the music industry. How are artists coping with the rise of AI? The influence of TikTok? The growth of labels? Let’s see!
#1. TikTok replaces hundreds of jobs with AI
TikTok has recently made significant layoffs, including within its content moderation teams, as the company moves toward using AI for moderation.. In Malaysia, fewer than 500 employees will be affected by the cuts, while 125 positions, or around 25% of the UK moderation division, are also at risk.
These changes aim to strengthen TikTok’s global content moderation model. Additionally, the company plans to invest $2 billion in trust and security initiatives, with a focus on improving efficiency through AI. However, this growing reliance on automated moderation has raised concerns. Experts including John Chadfield of the CWU union have criticized the company for treating moderation staff as disposable, highlighting the human toll of AI technology.
The layoffs follow similar reductions earlier this year at TikTok’s Indonesian e-commerce arm and its sales and advertising divisions, as the platform continues to restructure and optimize its global operations.
#2. AI-generated music worries Spotify artists
Artists have long criticized Spotify for its inadequate royalty systems and questionable content moderation practices. Today, a new challenge has emerged: the rise of AI-generated music, which increasingly competes with traditional musicians. Groups believed to be creations of AI, like Jet Fuel and Ginger Ales, amass hundreds of thousands of streams despite having minimal online presence.
There are still concerns about the impact of this AI-generated music on human artists’ royalties. Ed Newton-Rex, former vice president of Stability AI and now CEO of Fairly Trained, points out that AI models often exploit the work of real artists without compensation. While some remain optimistic, saying these practices do not threaten musicians’ livelihoods, Newton-Rex advocates for stricter regulation, calling for greater transparency and proper labeling of AI-generated content.
#3. Spotify opens up to video creators to expand its offering
Spotify is stepping up its game by targeting video creators, and plans to invest up to seven figures, according to Bloomberg. The audio-focused platform is now looking to attract YouTube creators to host their video content on Spotify. The goal? To expand its video catalog without supporting the production or sale of exclusive advertisements.
After investing hundreds of millions of dollars in podcasts in 2020, Spotify is focusing on visual content. With an 88% increase in users consuming video podcasts, the platform takes a “format-agnostic” approach, where audio and video can co-exist seamlessly.
However, Spotify is not transforming into a full-fledged video platform. Rather, the goal is to improve the user experience, allowing subscribers to switch between watching and listening based on their preferences. By diversifying its content, Spotify hopes to not only retain its current users, but also add a new layer of engagement to its platform.
#4. Music discovery in the digital age
Thanks to the algorithms of streaming platforms and social networks, as well as the accessibility of self-production solutions, independent and niche artists can now develop their careers and make a living from their music without depending on traditional gatekeepers like the big labels. of discs. This shift allows them to cultivate an authentic global audience around specialized genres.
As self-distribution gains traction, many companies are offering tailored support to help artists grow. They focus on early talent detection and provide resources tailored to artists’ specific needs. Their technology tracks streaming data to identify up-and-coming artists and evaluate key metrics, such as “intent rate,” which measures how many listeners are adding songs to their playlists. This innovative approach offers strategic support, ranging from financing to targeted marketing, allowing artists to succeed while remaining true to their musical identity.
#5. Universal Music completes full acquisition of (PIAS)
Universal Music Group (UMG) has completed the acquisition of 100% of (PIAS), after initially purchasing 49% of the company in 2022. Co-founders Kenny Gates and Michel Lambot sold their remaining shares, but Gates will remain CEO. With this acquisition, UMG integrates two key divisions of (PIAS): (Integral), specializing in physical and digital distribution for independent labels, and the (PIAS) label group. (Integral) will merge with Virgin Music Group, while the label group (PIAS) will remain autonomous.
Kenny Gates, who has signed a long-term contract to remain CEO, welcomed the acquisition, noting that it will allow the company to continue providing high-quality service to the independent music community. Michel Lambot, who will leave his operational functions but will remain an advisor, said he was satisfied with the successful partnership with UMG. UMG management believes that this acquisition will strengthen the label services business and provide increased support to independent artists and labels around the world.
