Headlines

Tyler Perry halts $800m studio expansion after being shocked by AI

The US film and TV mogul said he was in the process of adding 12 sound stages to his studio but has halted those plans indefinitely after he saw demonstrations of Sora and its “shocking” capabilities. “All of that is currently and indefinitely on hold because of Sora and what I’m seeing,” Perry said. “I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me.”

Source: Tyler Perry halts $800m studio expansion after being shocked by AI

OpenAI’s Video-Generating AI Is “Doomed to Failure,” Says Meta’s Top AI Scientist

Sora, OpenAI’s new AI model for generating video, has become the talk of the town since its release last week. But Yann LeCun, chief AI scientist at Meta, doesn’t think the much-hyped text-to-video model is all that. In particular, LeCun takes issue with OpenAI’s claims that its work with Sora will eventually enable the building of “general purpose simulators of the physical world.” If that’s the case, LeCun argues

Source: OpenAI’s Video-Generating AI Is “Doomed to Failure,” Says Meta’s Top AI Scientist

Reddit in AI content licensing deal is with Google

Social media platform Reddit has struck a deal with Google to make its content available for training the search engine giant’s artificial intelligence models, three people familiar with the matter said. The contract with Alphabet-owned Google is worth about $60 million per year, according to one of the sources. Bloomberg previously reported Reddit’s content deal without naming the buyer.

Source: Reddit in AI content licensing deal with Google

American Federation of Musicians, AMPTP Resume Contract Talks Amid Fight Over Streaming Residual Fees

As the American Federation of Musicians and the Alliance of Motion Picture and Television Producers resumed contract negotiations Wednesday, the AFM has released statistics that shed light on the changing nature of employment for industry musicians who play on many of the films and TV shows now being made.

Source: American Federation of Musicians, AMPTP Resume Contract Talks Amid Fight Over Streaming Residual Fees: ‘Their Value Cannot Be Denied’

Kobalt Positions $267M Asset Backed Security

Kobalt Music Group will issue one class A tranche, an A-2 piece rated A- from Kroll Bond Rating Agency, with an expected final maturity in April 2024. Musical publishing rights support all of the royalties with an estimated third-party valuation finding the catalog to be worth $410 million as of September 30, 2023. The valuation included an assumption of an 8.25% discount rate for songs at least 18 months old at and 11.75% for songs between three and 18 months old at valuation.

Source: Kobalt Positions $267M Asset Backed Security

AI Firms Face Broad Liability Under FTC Deepfake Proposal 

The Federal Trade Commission is considering whether the makers of tools that let people generate video, audio, and image impersonations should be held liable when digital dupes lead to fraud. Lawyers are pushing back on the FTC’s recommended approach, arguing it hits too broadly and could stop innocent uses of the technology as well as bad ones.

Source: AI Firms Face Broad Liability Under FTC Deepfake Proposal (1)

Catch Point Launches Program to Buy Performing Royalties From Songwriters

Catch Point Rights Partners, the private-equity backed music rights acquisition firm that has purchased the publishing of such artists/songwriters and/or producers as Brantley Gilbert, Yelawolf and All Time Low, is now offering a program through which it will buy performance rights income streams from songwriters while allowing them to retain ownership and control of all of their other publishing royalties.

Source: Catch Point Launches Program to Buy Performing Rights Royalties From Working Songwriters

FuboTV Files $1B Lawsuit to Block Disney, Warners and Fox Sports Streaming Platform

The media giants teaming up on a new platform that will pool together sports streaming rights are facing an antitrust lawsuit from rival sports streamer Fubo, which alleges that it’s being forced to carry dozens of pricey, nonsports channels as a condition of licensing sports rights from the companies in a scheme to stifle competition.

Source: FuboTV Files $1B Lawsuit Seeking to Block Disney, Warners and Fox Sports Streaming Platform

When Artificial Intelligence Makes Black Music, Who Really Wins?

AI tech is being used to appropriate and profit off of major Black artists in music (like Drake, The Weeknd & Beyoncé) leaving many to wonder if this is where the industry’s future is headed and if Black creators will even have a place in it. That fear harkens back to the 1950s and 1960s when the music of Black artists like Little Richard, Big Mama Thornton, Chuck Berry, and The Supremes was stolen, whitewashed, and popularized by white acts like Elvis Presley, Phil Collins, The Beach Boys, and Pat Boone.

Source: When Artificial Intelligence Makes Black Music, Who Really Wins?

UMG tunes its catalogue-buying strategy with $240m Chord stake

One of the common assumptions around the boom in music-catalogue sales is that it’s all about big investment funds piling in. That’s certainly happened, but it’s not the whole story. In fact, what may be more interesting in the future are the partnerships formed between Big Investors and Big Music. Universal Music Group’s announcement yesterday that it is acquiring a minority stake in Chord Music Partners being a case in point.

Source: UMG tunes its catalogue-buying strategy with $240m Chord stake – Music Ally

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