Making a Scene Presents looks at a new motivation (AI Music Creation) for record companies to purchase legacy artist catalogs

Record companies can see the writing on the wall, we may be looking at a decentralized music industry rendering the traditional record company extinct. In response they are changing their business model by increasingly buying up artist catalogs, besides the ability to control royalty and licensing revenue they are looking to position themselves in the evolving landscape of AI-driven music generation. While this has been a practice in the industry for some time, the rise of artificial intelligence (AI) in the music industry has added another layer to this trend. It is curious that some of the language of these purchase contracts now include the language that include not on the royalty and licensing of a particular sound recording but also include the “likeness, sound and any derived sound and likeness throughout the universe”

Here are a few ways AI is influencing the purchase of music catalogs:

AI Training Data:

Record companies may acquire extensive music catalogs as a way to ensure that they have ownership of a large library of music to feed into AI algorithms. These catalogs can be used to train AI models to generate new music, either by imitating an artist’s style or producing entirely new compositions that sound similar to existing music. With ownership of the catalog, the record companies would control the rights to any new works that are generated using the AI model trained on that artist’s catalog of music.

Rights and Royalties:

By acquiring artist catalogs, record labels can also control the distribution and use of AI-generated music. For instance, AI could be used to create new songs that replicate the style of a famous artist, and the label would receive royalties from streaming platforms, radio plays, and other distribution channels. This means that not only do they hold the rights to the original music, but they also control the potential commercial value generated from AI-produced content.

Expanding Use in Media and Content Creation:

AI-generated music is being increasingly used in video games, films, advertisements, and online content. Record companies might buy catalogs to secure the rights to songs that could be leveraged in AI-powered content creation tools. By owning the rights to a catalog, labels ensure that any AI-generated derivative works (such as music used in a TV show or film) would benefit them financially.

AI-Enhanced Music Production:

AI can also be used to enhance the production of existing songs by remixing or improving them. This could involve synthesizing different vocal styles, blending instruments, or creating entirely new versions of a track. By owning a catalog, record companies ensure they control the intellectual property of any new adaptations of the original music produced by AI.

Predictive Insights:

AI can analyze existing music to predict trends, helping labels make more informed decisions about future music production and investment. Catalogs with a large variety of songs offer a treasure trove of data for AI systems to analyze, which could influence how record companies sign new artists or produce music going forward.

Legal and Ethical Considerations:

There are significant legal and ethical implications surrounding the use of AI in music creation, particularly when it comes to using an artist’s catalog for training AI models. Issues around consent, fair compensation, and the preservation of an artist’s legacy are likely to be important points of negotiation in catalog acquisitions, especially as AI-generated music becomes more common.

In summary, while the main goal of purchasing artist catalogs remains to capitalize on traditional revenue streams (such as royalties and licensing), the potential for using these catalogs as sources for AI training and AI-generated music is likely becoming a key consideration for record companies. This trend reflects the increasing intersection of technology, intellectual property, and the future of the music industry.

 

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