The music industry is undergoing a profound transformation, driven by rapid technological advancements and shifting consumer preferences. For industries drowning in inefficiencies, plagued by trust issues, and shackled to outdated systems, the era of patchwork solutions is over. What we need now is a bold reset — and the fusion of AI and blockchain might just be the game-changing catalyst.
The industry’s growth trajectory remains strong. In 2024, Goldman Sachs raised their global music industry forecasts, increasing the 2024–2030 compound annual growth rate (CAGR) to 7.6% (up from 7.4%) and adjusting absolute estimates for 2030 by 12%. This boost reflects stronger-than-expected growth in live music (2030 estimates increased by 31%) and music publishing (up by 4%). In 2024, global net music revenues were expected to reach $76.1 billion, with gross revenues projected to hit $106 billion.
Source: Goldman Sachs Global Investment ResearchThe music rights sector is also seeing unprecedented activity. Blackstone, which has been actively investing in the music royalties asset class since 2021, completed one of the largest music take-privates ever in July 2024 with a $1.47 billion music deal. This milestone reflects the growing interest in and increasing volume of transactions in music rights, underscoring the sector’s investment potential.
Yet, alongside this remarkable growth lies a field full of challenges and untapped opportunities. The biggest hurdles remain the lack of ownership in music streaming and fair monetization for artists and rights holders. Technology, however, is stepping in to address these issues. From reshaping how music is created to revolutionizing its distribution and monetization, AI and blockchain are no longer just tools — they’re redefining the rules of the game. The stage is set for a more equitable, innovative, and dynamic music industry.
Revolutionizing Music Creation with AI
AI tools have made music creation more accessible, efficient, and creative. Platforms like Mubert and Amper Music enable artists to craft personalized music and provide actionable insights for improving their work, while tools like AIVA (Artificial Intelligence Virtual Artist) provide actionable insights and assist in composing original pieces in various styles. These tools aren’t limited to superstars — independent creators, small businesses, and even social media users can leverage AI to produce professional-quality music.
Some platforms, like Beatoven, even allow artists to profit from AI training on demo versions of their songs. This not only opens new income streams but also ensures artists retain full rights to their music.
AI serves as a creative partner, assisting artists by analyzing patterns in compositions, generating innovative ideas, and reducing production time. It empowers creators to experiment freely and bring fresh perspectives to their music.
Transforming Catalog Valuation and Investment with AI
Beyond creation, AI is revolutionizing how music catalogs are valued. Traditional methods relied on outdated practices, often sidelining artists during negotiations. By analyzing vast datasets — including historical earnings, market trends, and social media influence — AI provides a clearer, data-driven valuation of a catalog’s future earning potential.
The industry shift we are witnessing today ensures that not only superstars like Justin Bieber but also smaller independent artists can sell their music rights and thus achieve financial freedom or spend on self-promotion and their new tracks. It also enables fans to co-invest in music, forging deeper connections with the songs they love.
By making catalog investments more transparent and accessible, AI is turning music into a viable asset class for a broader range of investors.
Blockchain: Building Trust and Transparency in Royalties
While AI excels at predicting future value, blockchain ensures that transactions remain transparent and fair. Up until today, independent artists, who make up roughly 95% of the market, along with other rights holders, have largely been excluded from the music royalties market Those that receive payments often have no visibility into where they come from or whether they’re accurate.
A recent example is the lawsuit filed by Limp Bizkit against Universal Music Group (UMG). The band alleged that UMG used royalty software “intentionally designed” to obscure payments. Commenting on the breach of contract claims, UMG contends that the band’s allegations are largely “speculative” and based on “suspicion.”
Blockchain solves such issues by creating an immutable record for every song played. Every transaction is logged, ensuring transparency and fairness in royalty payments. This mechanism benefits both artists and investors, fostering trust in the system.
Additionally, blockchain enables innovative fan engagement models. Fans can crowdfund projects, vote for their favorite tracks, or receive rewards as tokens or digital assets. These initiatives strengthen the bond between artists and audiences, making music a collaborative journey.
Today, many companies are harnessing the power of AI and blockchain to reshape the music industry. For example, JKBX allows fans to buy fractionalized royalty shares, democratizing access to music investments. Sonomo provides retail investors access to digital streaming royalties. Ripe Capital is a trading platform for music rights investments that offers instant trading in tokenized portfolios of music tracks with enhanced transparency and liquidity.
Music for All: How Tech Empowers Artists, Investors, and Fans
2025 promises to be the perfect time to invest in music catalogs. Over the past few years, the number of catalog deals has steadily risen, and this trend is set to accelerate as industry leaders seize new opportunities. Major players like Sony Music are evolving from traditional music labels to companies focused on actively acquiring music catalogs, while social media giant TikTok is shifting its model from content distribution to ownership and management by launching a Music Content Investment Team.
The music industry is heading toward an innovative model that blends social media, music streaming, and interactive experiences. This new paradigm fosters a more integrated, democratic approach to music consumption, blurring the lines between digital media platforms.
With the power of AI and blockchain, the music creation and monetization process is undergoing a transformation, breaking down economic barriers and making it easier for anyone to participate in the industry — as an artist, investor, fan, or all three.
Disclaimer: The opinions in this article are the writer’s own and do not necessarily represent the views of Cryptonews.com. This article is meant to provide a broad perspective on its topic and should not be taken as professional advice.
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