WMG on AI: “Now is the time to shape your business model”

AI For Business

Anything you can do in UMG you can also do in WMG… as well. Not long after its rival struck a deal with Stability AI, settled a lawsuit with Udio, and laid out plans for a next-generation version that licensed the latter’s services, WMG followed suit.

Both deals were announced yesterday and appear to be in line with what UMG is doing with the two startups. WMG is collaborating with Stability AI to build “professional tools” for musicians and producers.

Meanwhile, it’s also featured in Udio’s next-generation GenAI music service, which “allows users to create remixes, covers, and new songs using artists’ voices and songs from songwriters they choose to engage, while ensuring artists and songwriters are credited and paid.”

This means that both Stability AI and Udio will lose two majors, and Sony Music Group (which appears to be about to announce its first AI deal, see Clay’s story below) and Merlin will acquire all the major rights holders. Of course, the same goes for indies who choose to license outside of Merlin.

WMG’s two announcements were accompanied by a blog post from CEO Robert Kyncl explaining the big picture regarding the acquisition.

“AI is still in its infancy. Investment is surging, talent is flowing in, and ambitious startups are tackling music again for the first time in more than a decade,” he wrote.

“Now is the time to shape business models, set guardrails and pioneer the future for the benefit of artists and songwriters.”

It’s clear that WMG’s own community of artists and songwriters was the primary audience for this post, and Kyncl took pains to project its approach as one that prioritized the interests of these creators.

“We will only enter into agreements with partners who are committed to a licensing model,” he wrote. “Economic terms must properly reflect the value of the music, and most importantly, artists and songwriters must have the option to opt-in to having their name, image, likeness, or voice used in new AI-generated songs.”

Kyncl also championed human artistry even as its licensed GenAI service goes live next year.

“In a sea of ​​AI-generated content, true artistry, identity and vision will define stronger artistic brands,” he suggested. “The more AI is enabled for fans, the more value is created. History shows us that the more interactive users can be with the music they love, the more value is created.”



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