MUSIC GROUP

FOR RETHINKING HOW MUSICIANS ARE PAID IN THE AI ERA

WHILE MANY MUSIC industry veterans greeted the arrival of generative AI last year with dread, Universal

Music Group (UMG) saw opportunity. The world’s largest music company has been coordinating the industry’s response to the technology while working behind the scenes to rewrite the way streaming royalties work— and doing both under the banner of finding artist-centric solutions to the threat of AI. Alongside the Recording Industry Association of America,

UMG helped assemble a coalition of 150-plus organizations last year for the Human Artistry Campaign, which established a framework for the ethical use of AI. UMG has since used that policy structure to lobby Congress for stronger AI regulations and to guide strategic partnerships that take advantage of the technology. At the same time, UMG has cannily used the flood of noise tracks and what it deems Ai-generated music onto streaming platforms to push for better royalties. It worked with French music streamer Deezer on its artist-centric approach, which boosts payouts for artists who receive more than 1,000 streams per month from 500-plus listeners. In January, Spotify adopted a similar payment scheme, setting a 1,000-stream-per-year threshold for paying royalties. UMG CEO Lucian Grainge says the work of “looking to promote a fairer way to allocate the streaming pie” was the first phase of UMG’S efforts. “You’re going to see us focusing next on growing the pie for all artists,” he says, “by creating stronger artist-fan relationships through superfan experiences and products.”