Finance

Warner Music Group and AI music platform Udio have struck what they call “a landmark agreement” that resolves the companies’ copyright infringement litigation. The companies have also entered into a licensing deal for a “next-generation” AI–powered music creation, listening, and discovery platform. The news arrived just an hour after WMG announced a new partnership with Stability AI on Wednesday, which the companies say will “advance the use of responsible AI in music creation”.

Source: WMG settles Udio lawsuit, strikes licensing deal for ‘next-generation’ AI music platform coming in 2026

The Circuit Group, which owns management firms Ayita and Seven20, has announced the launch of a new nine-figure investment fund focused on the acquisition of music assets and other cultural IP. Dubbed Circuit Capital, the new fund is backed by $500 million from Los Angeles-based Create Music Group (CMG), which was valued last year at $1 billion following a $165 million investment round.

Source: The Circuit Group launches $500m+ music investment fund backed by Create Music Group

Music streaming faces a dual crisis, according to SoundCloud CEO Eliah Seton – and it’s creating what he calls “a very ripe dynamic” for his platform. “Streaming is not enough for artists,” Seton says. “The vast majority of artists don’t earn a living wage. 80 million tracks making less than five bucks, 46 million tracks making nothing. Those numbers have only grown in a generative AI world.” But the problem extends beyond artist economics.

Source: As SoundCloud overhauls its creator subscription model, CEO Eliah Seton says the platform is building music’s ‘next major revenue format’

A six-month audit published by Fair Play, a new independent initiative aiming for transparency and accountability in electronic music royalties, provides some much-needed insight into how UK royalties are collected and distributed, and how effectively so. The answer? Not very. It turns out that only 36% of club performance royalties reach the correct creators, with an estimated £5.7 million ($7.4 million) misallocated every year.

Source: Only 36% of UK Club Royalties Reach the Right Creators—Study

Spotify and the National Music Publishers’ Association (NMPA) have joined forces to create a new opt-in license for NMPA members to enter into a direct license agreement for “expanded audiovisual rights” in the U.S., according to a press release about the deal. NMPA members can sign up using a portal, and the deal is said to increase the royalty-earning potential of participating publishers and writers by offering them a new audiovisual royalty stream.

Source: Spotify and NMPA Partner to Launch New Audiovisual Revenue Stream for Music Creators

In its latest Global Collections Report, CISAC, which represents 228 CMOs in 111 countries, reported total royalty collections of €13.97 billion (USD $15.12 billion) across music, audiovisual, visual arts, literature and drama in 2024. That’s a 6.6% increase over 2023. Royalties to songwriters and publishers accounted for fully 90% of that total, growing 7.2% YoY to €12.59 billion ($13.63 billion).

Source: Global songwriter royalty collections reached $13.6bn in 2024, up 7.2%, CISAC reports