This week, Suno announced a global licensing deal with BMG, establishing a strategic framework covering BMG’s recorded music and music publishing repertoire.
Meanwhile, after striking deals with Universal Music Group and Merlin, Spotify signed an agreement with Kobalt to power AI-generated, fan-made covers and remixes.
Also this week, Suno announced new download limits for its subscribers, with Pro users restricted to 20 song downloads per month and Premier users to 60. The company said the changes are designed to prevent ‘bad actors from mass-exporting music’.
Elsewhere, Merch Traffic, Live Nation’s merchandise business, sued online sellers it accuses of selling counterfeit merchandise from artists including Nirvana and Bruno Mars.
Plus, Spotify rolled out an AI-persona label to flag AI-generated artists and keep them out of recommendations by default.
1. Suno inks global licensing deal with BMG, ahead of launching new music model
Suno has another feather in its cap.
The AI music-making platform has on Wednesday (August 12) co-announced a new deal with BMG, described in a press release from the music company as a “global alliance that establishes a strategic framework covering BMG’s recorded and music publishing repertoire.”
The release nods at an opt-in element for BMG’s roster, adding: “The agreement ensures that BMG artists and songwriters who choose to participate have their rights protected and are compensated for their music, while also settling prior use of BMG recordings and publishing works.” (MBW)
2. After Universal and Merlin deals, Spotify inks agreement with Kobalt for AI-powered ‘fan-made’ covers and remixes
Spotify has signed a licensing agreement with Kobalt covering its upcoming AI-powered covers and remixes tool.
It’s Spotify’s first deal for the tool with a music publisher outside of Universal Music Group.
The Kobalt agreement, announced on Thursday (August 13), follows the deal Spotify struck with Merlin on August 4. (MBW)
3. Suno limits Pro subscribers to 20 song downloads per month, while promising new models ‘developed in partnership with the music industry’
Suno is capping the number of songs its users can download from its AI music platform.
From September 3, the two categories of paying Suno subscribers will see their allowances dramatically change:
Pro subscribers, who pay USD $8–$10 a month, will be capped at 20 monthly song downloads. Currently, Pro subscribers have no download limit and are granted 2,500 song credits per month. (MBW)
4. Live Nation’s Merch Traffic sues online sellers over counterfeit Nirvana, Bruno Mars merch
Merch Traffic, a subsidiary of Live Nation Entertainment, has filed a trademark lawsuit against a group of anonymous online sellers it accuses of selling counterfeit merchandise for artists including Nirvana, Bruno Mars, The Notorious B.I.G. and more.
The complaint was filed on August 5 in the US District Court for the Northern District of Illinois.
It names as defendants a set of e-commerce operators identified only on a “Schedule A” attached to the filing, which the company says use seller aliases to hide their identities. (MBW)
5. Spotify to label AI artists with new ‘AI Persona’ badge – and keep their music out of recommendations by default
Spotify is cracking down on profiles of artists whose identities are generated by artificial intelligence.
The streaming platform is introducing a badge that flags artist profiles built around an AI-generated identity as “AI Personas”.
The label is designed to tell listeners that an artist’s identity “may be AI-generated and does not represent a real person”, according to Spotify. (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
Music Business Worldwide Weekly Round-Up Summary
Welcome to the latest edition of Music Business Worldwide’s Weekly Round-up, where we highlight the most significant stories from the past week in the music industry. This week brought several noteworthy developments, including strategic partnerships, legal actions, and new policies aimed at addressing the evolving landscape of music consumption and creation.
-
Suno and BMG Global Licensing Deal
Suno, an AI music-making platform, has recently announced a global licensing agreement with BMG. This deal establishes a strategic framework that encompasses BMG’s recorded music and publishing repertoire. According to the press release from BMG, this partnership will ensure that artists and songwriters within BMG’s roster are compensated for their contributions while also addressing any previous uses of BMG’s recordings and publishing works. This move signifies a growing recognition of the need for proper compensation and rights management in the context of AI-generated music. -
Spotify’s Agreement with Kobalt
Following its earlier agreements with Universal Music Group and Merlin, Spotify has signed a new licensing deal with Kobalt. This agreement pertains to Spotify’s upcoming tool that will allow for AI-generated fan-made covers and remixes. This marks Spotify’s first partnership with a music publisher outside of Universal for this initiative. The licensing agreements are part of Spotify’s broader strategy to integrate AI into its platform and expand the creative possibilities for users while ensuring that rights holders are appropriately acknowledged and compensated. -
Suno Introduces Download Limits for Subscribers
In a notable shift, Suno announced new download limits for its subscribers. Effective September 3, Pro users will be limited to 20 song downloads per month, while Premier users will have a cap of 60 downloads. Previously, Pro subscribers could download an unlimited number of songs. The rationale behind these changes is to prevent misuse by ‘bad actors’ who may exploit the platform for mass music exports. This decision reflects the ongoing challenges faced by music platforms in balancing user access with the protection of artists’ rights. -
Merch Traffic Sues Over Counterfeit Merchandise
Merch Traffic, a subsidiary of Live Nation Entertainment, has initiated a trademark lawsuit against several anonymous online sellers accused of distributing counterfeit merchandise related to high-profile artists, including Nirvana and Bruno Mars. The lawsuit was filed in the US District Court for the Northern District of Illinois and targets e-commerce operators who conceal their identities using aliases. This legal action underscores the ongoing battle against counterfeit merchandise in the music industry, as legitimate businesses seek to protect their brands and revenue streams. -
Spotify Launches ‘AI Persona’ Badge
In an effort to clarify the distinction between real artists and AI-generated identities, Spotify has introduced a new label known as the « AI Persona » badge. This badge will be applied to artist profiles that are created using AI technology, informing listeners that the identity may not represent a real person. By implementing this feature, Spotify aims to enhance transparency and ensure that listeners are aware of the nature of the artists they are discovering on the platform. Additionally, music from these AI-generated artists will be kept out of recommendations by default, further promoting a clear separation between human-created and AI-generated content.
In conclusion, this week’s developments reflect significant movements within the music industry, particularly concerning the integration of AI technologies, the enforcement of rights, and the ongoing battle against counterfeit merchandise. As the industry continues to navigate these changes, partnerships like those between Suno and BMG, as well as Spotify and Kobalt, will likely play a crucial role in shaping the future of music creation and distribution. The legal actions taken by companies like Merch Traffic also highlight the importance of protecting artistic integrity and revenue in an increasingly digital marketplace. As the landscape evolves, platforms and stakeholders must balance innovation with the rights and needs of artists and songwriters.
We look forward to bringing you more updates in the coming weeks as the music business continues to adapt and grow in response to these emerging challenges and opportunities.
