As the music industry continues to evolve, the use of artificial intelligence (AI) has become a hot topic in recent years. While AI can be a powerful tool for music creation, it also presents a potential threat to copyright ownership. In response to this concern, Spotify has announced that it is working with major record labels to develop a solution.
If Spotify keeps growing at its current rate, it will have a billion global users by the midpoint of 2027.
That was one of MBW’s major takeaways from the firm’s Q1 2023 quarterly earnings today (April 25), which confirmed that SPOT’s monthly active user (MAU) count hit 515 million at the end of March this year, up by 26 million quarter-on-quarter.
As explained by Spotify CEO, Daniel Ek, on the firm’s call with analysts this morning, that QoQ growth in users was the second biggest in Spotify’s history, second only to Q4 2022, when it added 33 million MAUs.
The problem arises from the ability of AI algorithms to create music that is eerily similar to human-made music. As the technology advances, it becomes increasingly difficult to distinguish between a piece of music created by a human and one created by an AI program. This poses a significant risk to the ownership of copyright, as it becomes unclear who the rightful owner of a particular piece of music may be.
To address this issue, Spotify has been working with record labels to develop a system that can identify music created by AI and attribute ownership to the rightful copyright owner. The system would work by analyzing the music itself, as well as metadata such as the name of the artist, the genre of the music, and the date it was created.
While the system is still in development, it represents an important step forward in the music industry's ability to manage the impact of AI on copyright ownership. Spotify's efforts are just one example of how the music industry is adapting to the changing landscape of music creation, and how technology is shaping the future of the industry.
The potential of AI in music creation is vast, and it offers exciting new opportunities for artists and producers. However, it also raises important questions about the ownership and control of music. As the technology continues to advance, it is essential that the industry works together to ensure that the rights of artists and copyright owners are protected. Spotify's collaboration with record labels is an important step in this direction, and it will be fascinating to see how this technology continues to evolve in the years ahead.
The transaction, which is subject to regulatory approvals, is expected to close in the second half of 2025.
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