With Hollywood reeling from the potential cataclysmic effects of Donald Trump‘s calls for 100 percent tariffs on non-U.S. produced movies, California Gov. Gavin Newsom sprung into action on Monday evening, proposing a team up with the White House on a $7.5 billion federal film tax credit scheme to provide relief to the entertainment industry.
Finance
AI Adoption Projected to Boost Media Industry Revenue by 10%
A new report from Ernst & Young suggests that artificial intelligence could bring measurable financial benefits to the media and entertainment industry, predicting a 10% increase in revenue and a 15% decrease in operational costs for companies that adopt the technology strategically. With content demands growing across streaming, digital platforms, and global markets, the findings come at a moment when studios are seeking ways to scale output without scaling overhead.
Source: AI Adoption Projected to Boost Media Industry Revenue by 10% — AI In Hollywood
SAG-AFTRA Chief Lays Out AI Protections It Will Be Looking For In Next Studio Contract
Artificial intelligence was a major factor in the actors strike of 2023 and the burgeoning technology will remain a key element in next year’s negotiations. Speaking on a Deadline-moderated panel at SeriesFest in Denver, Crabtree-Ireland, who is National Executive Director & Chief Negotiator at SAG-AFTRA, revealed that the guild would be “starting our preparations for negotiations this fall.” He said that he believes that AI will be an important factor in these talks.
Source: SAG-AFTRA Chief Lays Out What AI Protections It Will Be Looking For In Next Studio Contract
Content licensing for publishers: Five key questions answered
As publications fight for increasingly thin slices of advertising budgets and the subscription model for news sites slowly stagnating, it’s more important than ever to maximize your publication’s content to bring in every bit of revenue possible. Many content creators and publications in Europe are overlooking the potential of content licensing to support their brands. The truth is, your existing content can – and should – generate income long after you publish it.
Source: Content licensing for publishers: Five key questions answered
UMG Posts Strong Revenue for First Quarter, But Streaming Growth Continues to Level Off
Universal Music Group posted robust revenue of €2.901 billion — around $3.309 billion, an increase of 11.8% year-over-year, or 9.5% in constant currency — in its earnings report for the quarter ended on March 31, 2025, although streaming growth continues to level off and impact the company’s bottom line. While Universal’s recorded music’s subscription revenue grew 11.5% year-over-year, or 9.3% in constant currency, streaming revenue grew just 2.9% year-over-year, or 0.3% in constant currency.
Spotify on superfan plans: ‘We do need the partners to come to the table’
A couple of comments in its earnings call suggested the details are still being worked out with rightsholders. “Of course we need alignment and support from our industry partners to offer these kinds of new experiences to our users,” said co-president and chief business officer Alex Norstrom. “We do need the partners to come to the table and be part of this journey,” added CEO Daniel Ek.
Source: Spotify on superfan plans: ‘We do need the partners to come to the table’
Epidemic Sound acquires AI startup Song Sleuth to tackle music’s ‘black box’ problem
Sweden-headquartered Epidemic Sound has acquired Song Sleuth, an AI music recognition startup, betting on AI to solve one of the music industry’s most persistent challenges: tracking and monetizing songs used in user-generated content online. Epidemic Sound said the acquisition paves the way for the launch of a new service called Aentidote aimed at identifying unclaimed and undistributed royalties from remixes, covers, and live recordings.
Source: Epidemic Sound acquires AI startup Song Sleuth to tackle music’s ‘black box’ problem
Splice acquires Spitfire Audio for a reported $50m as it bets on AI music creation
Financial terms of the acquisition were not disclosed, but according to the Financial Times, which cited a person familiar with the matter, the deal is worth about USD $50 million. The acquisition marks Splice’s entry into the plugin sector, which it notes is valued at $640 million, and aligns with its existing subscription and rent-to-own businesses.
Source: Splice acquires Spitfire Audio for a reported $50m as it bets on AI music creation
Harvard Was First. Hollywood Could Be Next
Hollywood leans on a network of trade groups and associations representing various segments of the business. These include unions, guilds and professional organizations that advocate and promote the interests of its members. Threats to revoke tax-exemptions for trade groups and nonprofits in the entertainment industry could be used as a bartering chip for the administration to get what it wants.
European competition regulator to assess UMG’s $775m acquisition of Downtown Music
The European Commission confirms that it has accepted requests submitted by Austria and the Netherlands to assess the proposed acquisition of Downtown by UMG under the EU Merger Regulation (EMMR). According to the official announcement from the EC on Friday (April 25): “The proposed transaction does not reach the turnover thresholds set out in the EUMR and therefore was not notified to the Commission.
Source: Confirmed: European competition regulator to assess UMG’s $775m acquisition of Downtown Music