From major companies’ AI lawsuit to Believe’s big takeover plans… this is MBW’s weekly digest

Welcome to the weekly Music Business Worldwide roundup – where we make sure you catch the five biggest stories that hit our front pages over the last seven days. The MBW roundup is supported by Centerthat helps over 500 of the world’s most famous artists maximize their income and reduce tour costs.

In a not entirely unexpected move this week, three major music trends – Sony, universalAND Warner – has filed lawsuits against AI music generators Sun AND Udio. The move marks the first major attempt by labels to seek redress for the alleged unauthorized use of copyrighted works to train artificial intelligence.

While AI-powered tools that can create complete songs in seconds pose a clear threat to music copyright owners, this week we learned of another potential threat: the possible decline in demand for music streaming services. A YouGov poll in Sweden found that fewer people in Spotify’s home country now pay to stream music than they did two years ago.

We learned this in other news this week Be careful boss Denis Ladegaillerie – which is part of the consortium that recently took over 95% French digital music company – is taking a look “transformational” takeoverpossibly a music publisher to add to the Believe ecosystem of companies.

We also learned that a record label, a distribution company and an entertainment network Create a music group lifted up $165 million in the financing round, which means it is valued at $1 billionwhich turned the nine-year-old company into a true unicorn.

This week’s news finally stated it Youtube leads conversations Sony, universal AND Warner for licensing music to train new AI technologies.

Here’s what happened this week…

1) HOW MAJOR LABELS PLAN TO COST SUNO AND UDIO BILLIONS (AND WHY IT’S ALL IN MICHAEL BUBLÉ’S FAVOR)

Lawsuits filed on Monday (June 24) by major record companies against music companies using AI Suno AND Udio leave no doubt that the music industry sees these types of AI tools as a threat to its existence.

“The unauthorized use of… copyrighted recordings by both companies threatens to eliminate the existing market for licensing sound recordings,” the lawsuit states, “as well as the future market for licensing sound recordings to generative artificial intelligence companies.”

In other words, these technologies, which allow users to create songs in a matter of seconds, using only text suggestions, have the potential to destroy the entire music industry.

For the major music rights owners behind the lawsuits, failure is not an option…

2) WARNING SIGN? ACCORDING TO YOUGOV STUDY, SWEDEN HAS FEWER PAYING MUSIC SUBSCRIBERS THAN 2 YEARS AGO

The music recording industry is focused on price increases premium streaming services in key markets.

However, A new survey from the traditionally important streaming market, Swedenmay provide food for thought for the wider music industry.

According to a YouGov survey, 56% people in Sweden currently pay for a premium subscription – either directly or as part of a package.

This number was lower compared to 59% respondents in Sweden who said they paid for a premium music subscription in 2022…

3) DENIS LADEGAILLERIE HAS FAITH IN HIS ARMS AGAIN – AND HAS HIS EYES ON A BIG TAKEOVER

Prediction: There will likely be at least one in the recorded music industry An acquisition worth over a billion dollars distribution and service player in the next 12-24 months.

Surprise: this could very well have been the company behind the aforementioned acquisition Be careful.

This is what the founder and CEO of Believe says, Denis Ladegailleriein an exclusive interview with Music Business Worldwide.

Ladegaillerie called MBW today following the news that its consortium – which Ladegaillerie co-owns with EQT and TCV – now owns 95% Believe in its recent share tender…

4) CREATE A $1 BILLION MUSIC GROUP BY RAIZING $165 MILLION DURING THE INVESTMENT PERIOD

Create a music group He secured 165 million US dollars a minority investment round led by a private equity firm Flexpoint FordMBW can reveal.

Watch out, unicorn! The investment round values Los Angeles-HQ’d Create at 1 billion dollars– confirmed the spokesman.

A veteran of the music industry Karol Goldstuck also joined the financing round, which is expected to see the Flexpoint-led group acquire nearly one-fifth of Create’s share capital.

Create says it will use the money for fuel further global expansion and implement an “ambitious acquisition strategy”…

5) YOUTUBE TALKS TO SONY, UNIVERSAL AND WARNER ABOUT MUSIC LICENSING FOR AI TOOLS (REPORT)

Google‘S Youtube is in talks with three music majors – Sony, universalAND Warner – licensing their music to train AI tools that will clone music from popular artists, according to a report published in “Financial Times”..

YouTube wants to offer upfront cash payments in the form of a lump sum for the rights to music by specific artists – with the consent of the artists themselves.

The idea is to encourage more artists to allow their work to be used to create AI music tools. Youtube wants “dozens” of artists to take parttwo people familiar with the matter told the FT.

YouTube’s initial efforts to work with artists on AI tools seem to have fallen short of expectations: only 10 artists agreed to participate in the training The path of dreamsa tool aimed at bringing AI-generated music to YouTube Shorts, a video platform that competes with TikTok…

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