‘Music creators are streets ahead of us creators of brands and advertising’: Agency owner reacts to AI music report
The music industry is grappling with the effects of AI in much the same way as the marketing and advertising industries, a new study suggests.
By 2028, 23% of music creators’ revenue – totalling over A$519 million – is at risk due to generative AI, according to music rights management organisation APRA AMCOS.
As the debate over AI’s role in the creative industry continues, 54% of individuals believe it can boost creativity, while 82% worry it might endanger their income.
Simon Lee, chief creative officer of industry The Hallway, said music creators are leading the way in taking a stand as generative AI turns existing content into new, monetisable outputs.
“The AI Music Report makes for sobering reading, but it’s encouraging to see APRA AMCOS ringing the alarm bells and making recommendations to protect music creators’ ability to continue to earn a living from their work,” Lee told Mumbrella.
“Music creators are streets ahead of us creators of brands and advertising in being able to take a stand as Generative AI services digest everything that has come before and produce new monetisable outputs.
“Creative agencies currently hand over valuable intellectual property in return for head hour-based remuneration.
“In a market in which creative agencies are seeing revenue shrink due to the increase of in-housing and automation, this is increasingly untenable.”
He added that agencies’ value now, more than ever, lies in the long-term commercial impact of the ideas they generate.
“We need to evolve to a remuneration model that reflects this: one in which the creators retain a level of ownership of our IP and so can monetise it over a longer term – whether that be through licensing agreements with clients or AI related usage royalties.”
The AI and Music report is based on survey responses from over 4,200 APRA AMCOS members and includes input from leading industry figures such as Tina Arena, Jimmy Barnes, Bernard Fanning, and more.
Prof. Dr Klaus Goldhammer, CEO of Goldmedia GmbH and leaders of the study, said the high level of participation alone shows how much creative professionals are concerned about the challenges posed by AI in the music sector.
“Australia and New Zealand are not just adapting to AI-driven changes – they are leading the way, setting a benchmark for the rest of the world.”
Simon Lee at Mumbrella’s 2024 Finance Marketing Summit
Similar to the marketing and advertising industries, a major concern is the lack of regulation and policy. Almost everyone surveyed cited the need for credit, consent and fair remuneration for their work as a key concern.
97% of respondents demand that AI providers disclose the use of copyrighted works as training data, 95% insist that permission from copyright holders be obtained before using their works for AI, and 97% call for policymakers to address AI and copyright challenges more effectively.
APRA AMCOS CEO Dean Ormston said: “If the use of AI is unregulated and unlicensed, it will be economically devastating. Creators pour their hearts and souls into their work, yet they’re facing a reality of seeing their creations exploited by AI platforms.”
He urged the Australian Governments to implement EU-style transparency guidelines on tech companies now to disclose the content that has been copied and used without permission to build AI platforms, with sanctions for non-disclosure.
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