AI Music Strikes a New Chord: Labels Partner for Licensed Remixes
The music industry, after a period of intense legal battles and skepticism towards AI, is now actively embracing generative music. Major labels Universal Music Group (UMG), Sony Music Entertainment, and Warner Records have inked groundbreaking deals with AI music startup Klay, signaling a significant shift towards monetizing AI-driven music creation.
Key Takeaways:
- Major record labels are now partnering with AI music platforms, moving from litigation to licensing.
- Klay’s “ethical” AI platform aims to allow users to remix existing songs with proper artist compensation.
- This move mirrors the existing streaming model, raising questions about artist payouts and the future of music consumption.
- The industry grapples with distinguishing legitimate AI-generated content from unauthorized use and deepfakes.
From Lawsuits to Licensing: The New AI Music Frontier
Just two years after the viral sensation “BBL Drizzy” and subsequent lawsuits against AI music companies like Udio and Suno, the landscape has dramatically changed. The “big three” labels, once at the forefront of copyright infringement claims, are now forging alliances. Bloomberg reported that Klay has become the first AI music company to secure agreements with all three major labels.
Klay’s “Ethical” Approach to AI Music
Klay positions itself as an “ethical” AI platform, reportedly developing a streaming service that enables users to remix songs in various styles. Crucially, its models are trained on licensed music, aiming to ensure that participating artists and songwriters are recognized and rewarded. Warner Records praised Klay, stating it’s “not a prompt-based meme generation engine designed to supplant human artists” but rather a subscription product to “uplift great artists and celebrate their craft.”
A Familiar Monetization Model Emerges
These deals, along with recent settlements between UMG and Warner Music with Udio, suggest a compensation framework similar to traditional music streaming: micropayments based on plays. This echoes long-standing criticisms from artists about the current streaming economy, where profits often flow disproportionately to labels. The complexity of compensating artists for AI-generated remixes, especially when styles are altered or viral potential is realized, remains a significant challenge.
The Messy Ecosystem of AI Music
Despite these new partnerships, the AI music ecosystem remains complex. Spotify recently removed 75 million “spammy” tracks, including unauthorized vocal impersonations like the viral song “I Run,” which was mistakenly attributed to Jorja Smith. This highlights the ongoing struggle to police AI-generated content and enforce new policies against vocal impersonations. The line between original compositions, AI-assisted creations, and outright deepfakes continues to blur.
Editor’s Take: A Calculated Gamble for Labels
The music industry’s pivot towards AI licensing with companies like Klay is a strategic, albeit risky, move. Labels are attempting to regain control and establish a new revenue stream in a rapidly evolving technological landscape. By striking these deals, they aim to legitimize AI music creation under their umbrella, ensuring they profit from the use of their artists’ work and catalog. However, the potential for a “muddy” market, where officially licensed AI tracks coexist with black market alternatives, is high. The true test will be whether this new model genuinely benefits artists or simply replicates the existing power dynamics in a digital format.
This article was based on reporting from The Verge. A huge shoutout to their team for the original coverage.
