The latest edition of Music Week takes a deep dive into the fast-paced royalty space.
In a special report, some of the market’s key players delve into the scene’s biggest opportunities and challenges and discuss where the scene is headed next.
According to IFPI, performance rights revenue rose 9.5% last year to $2.7 billion, accounting for 9.5% of the global market, demonstrating the sector’s growing importance for modern talent.
The loyalty sector has been an early adopter of artificial intelligence, with generally positive results, according to those working in the field.
“Music has embraced new technology well and we are excited about the possibilities that AI opens up,” Kate Reilly, chief membership and human resources officer at PPL, told Music Week. “At PPL, we are beginning to see benefits from AI, including improvements to our internal systems and processes, and are relying on AI tools to increase efficiency, improve data accuracy, and ultimately improve member payments. The project is on the roadmap.”
Prager Metis (PM), an international advisory and accounting firm, is working with third-party companies that use AI to identify anomalies in royalty reporting to artists and songwriters, says PM partner Austin Jacobs. Mr. reported.
“AI will play a key role in future royalty audits as the size of royalty statements increases with a huge number of small transactions,” he added.
AI is expected to play an even more important role in the music business and the lives of music creators in the coming years
alex heish
Tracey Myall, loyalty director at Gelfand, Rennert & Feldman, said her team in the UK has been using AI “for some time” and is working internally with colleagues in the US to add to its repertoire of AI tools. I made it clear that there is.
“We frequently exchange ideas and solutions with data scientists and analysts to create new tools,” she said. “If you look at what we’ve created so far, it’s very impressive and we can see the range expanding even further.”
Alex Heisch, founder and CEO of music finance company Sound Royalties, said AI is becoming “increasingly pervasive” in his company’s operations.
“We are leveraging AI to enhance data analysis and improve prediction accuracy,” he explained. “AI helps us process large datasets efficiently and ensures more accurate and timely payment of overflow royalties to creatives.The use of this enhanced technology will help us to improve our personalized and This goes hand in hand with high-touch customer service.
“In the coming years, AI is expected to play an even more important role in the music business and the lives of music creators. AI will further streamline royalty calculation and distribution, enabling real-time monitoring and increased transparency. AI also enables personalized customization of the music experience and more effective engagement with superfans. ”
He added, “In addition, AI will help us continue to develop new revenue streams, such as AI-generated content and dynamic pricing models. However, we believe that AI will help us continue to develop new revenue streams, such as AI-generated content and dynamic pricing models. Challenges related to ethical use must continue to be addressed.” For example, the recently enacted “Grow Originals, Grow Art, Keep Entertainment Safe (No Counterfeits) Act.”
“We are committed to using AI responsibly and ensuring that its integration benefits all stakeholders, while maintaining transparency and fairness in the royalty market. .”
We need global safeguards that provide transparency, auditability, and clear and enforceable rules for compliance with copyright law.
andrea chaparry martin
Tom Allen, president of Downtown Loyalties and Financial Services, said there are many opportunities in this space to use machine learning to augment data and make predictions.
“Using these models to do things like predict future revenues can be a useful tool for planning cash flows for specific projects,” he said. “Trust and safety is a big part of the work of the entire Downtown data science department, analyzing trending datasets to discover fraudulent activity and remove it from delivery services.
“Within our products, we are also seeing opportunities to leverage AI to improve the way we interact with users. Run experiments on how to query and identify language anomalies. We believe that AI can be very helpful in enhancing processes and improving efficiency for users.
PRS For Music CEO Andrea Chapparley Martin said there was an “urgent need” for a framework for the “safe development and deployment” of AI.
“Generative AI services are undeniably commercial and typically operate on a subscription model, with some costing up to £50-60 per month,” she said. “They are built using songs and compositions by human creators, with little permission or compensation from their rights holders. This is in response to a lawsuit filed by the RIAA. It’s a fact that neither Suno nor Udio tried to dispute.
“So it’s probably not surprising that many songwriters and composers don’t see AI as a positive thing.”
She went on to say, “We need global safeguards that provide transparency, auditability, and clear and enforceable rules for compliance with copyright law.” “The current market ambiguity does not meet the needs of creators or AI services.
“As an industry, we must play our part. In our member survey, around three in five PRS members say they are worried about how AI will impact their career. We find that we need more support to understand the world of AI. We need to build a common knowledge base about AI, both individually and collectively, and define what it brings. Unique opportunities and challenges. ”
Nevertheless, Martin acknowledged that the technology “presents opportunities as well as threats.”
“Our systems use machine learning to streamline and optimize processes, increase cost efficiency, and enhance the services we provide to our members,” she said. “Last year, we successfully matched more than 90% of reported musical works. By expanding our toolset and using robotic process automation, we are now able to provide accurate royalty payments to music creators. Payments can be made even faster.”
MRC’s greatest resource is our people, and we know that our clients truly value that connection.
brendan jack
But Brendan Jack, royalty director at The Music Royalty Co (MRC), said the business was keen to maintain a personal feel.
“Perhaps surprisingly,[AI]is not factored into our work at the moment,” he revealed. “I think this will be an invaluable tool for automating many of the tasks involved in music royalty processing and accounting. However, I think it will be difficult to get to the point where the human element is no longer necessary, if at all. I think it will also take a long time.
“As a business owner, you need to discuss your accounts and get advice on statements. You need someone who not only understands the intricacies of finance, but also provides clear and straightforward answers. Our resources are our people, and we know that our clients really value the human connection.”
Elsewhere in the space, Colin Young, Ben Marlow and Gary Groutage founded Y Royalties last year. The firm, which started out as the royalty division of accounting firm CC Young & Co, specializes in royalty audits, copyright management, catalog valuations and transaction due diligence.
“Our goal is to challenge the industry and apply our innate curiosity to ensure creators and rights holders are fairly compensated for their work. We need deep data knowledge and technology that can keep up with the pace,” said the head of evaluation. and Alex Bowler of Royalty Due Diligence.
Subscribers can read the full Music Week 2024 Loyalty Special Report here.
