Since the first AVN “expo,” in 1998, adult entertainment has been overtaken by two business models: Pornhub, a free site supported by ads, and OnlyFans, a subscription platform where individual actors control their businesses and their fate. Now, a new shift is on the horizon: artificial intelligence models that spin up photorealistic images and videos that put viewers in the director’s chair.
AI ‘dream girls’ are coming for porn stars’ jobs
Songwriters and publishers to receive nearly $400m payout after streaming royalty ruling
The windfall stems from the Copyright Royalty Board’s Phonorecord III determination in August 2023, which established higher royalty rates for music streamed between 2021 and 2022. This means streaming giants like Spotify, Amazon Music, YouTube, and Pandora underpaid songwriters and publishers by $419.2 million, according to information from the Mechanical Licensing Collective (MLC), highlighting underpayments during the 2021-2022 period.
Source: Songwriters and publishers to receive nearly $400m payout after streaming royalty ruling in the US
American Federation of Musicians Reaches Tentative Deal with AMPTP
The American Federation of Musicians has struck a tentative agreement with the Alliance of Motion Picture and Television Producers, reaching a deal that union leaders hailed as “a watershed moment for artists” that includes residuals for made-for-streaming content and protections against the use of AI. The AFM announced the tentative agreement one day after the sides resumed contract negotiations that began in January.
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.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.
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.
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