tech
Music industry faces AI deals, streaming fraud crises
The music industry faces four converging crises: AI licensing deals are going live, publishers are challenging performing rights organisations, AI-powered streaming fraud is surging, and a royalty rate-setting showdown with the Copyright Royalty Board looms. NMPA has struck deals with Udio and Klay, Spotify partnered with UMG on AI remixes, and the first AI streaming fraud case ended in a guilty plea.
TL;DR
- Major labels and publishers are signing licensing deals with generative AI platforms like Udio and Klay.
- Spotify is partnering with UMG to allow AI-powered song remixes and covers for premium subscribers.
- Songwriters express fears about their work being used for new creations without permission or compensation.
- Publishers are voicing frustration with performing rights organizations (PROs) regarding transparency and efficiency.
- A North Carolina man pleaded guilty to defrauding streaming services out of over $8 million using AI-generated songs and bots.
- Apple Music flagged billions of fraudulent streams in 2025, and the company has increased its penalties.
- AI is being used to enhance streaming fraud, prompting new preventative measures from platforms like Spotify.
- Negotiations for the next statutory mechanical royalty rates, set by the Copyright Royalty Board, are approaching and could be contentious.