AI is on a collision course with the music industry. Reservoir's Golnar Khosrowshahi thinks there’s a way through it
Oct 31, 2023
auto_awesome
Reservoir Media CEO Golnar Khosrowshahi discusses the challenges of the music industry in the age of TikTok and generative AI, the impact of AI on copyrights, managing music metadata and licensing, exploring future licensing structures, navigating lawsuits, and monitoring momentum in the music industry and cultural movement.
Reservoir Media treats individual songs as assets and monetizes them in various ways, showcasing a new approach to the music industry.
The rise of AI in music creation brings forth complex issues in copyright law, raising questions about ownership, compensation, and attribution.
The future of music licensing and rights management involves potential automation through AI, but challenges remain in determining fair compensation and respecting existing copyrights.
Deep dives
Reservoir Media: A Unique Approach to the Music Industry
Reservoir Media is a newer record label that operates differently from traditional labels. Instead of discovering and developing new talent, Reservoir focuses on acquiring existing hit song catalogs from established artists. With rights to over 150,000 songs and 30,000 master recordings, Reservoir treats these individual songs as assets and monetizes them in various ways. Golnar Kauswarshahi, the CEO of Reservoir, discusses the challenges of copyright in the age of generative AI tools. She also shares insights into the changing dynamics of the music industry, including the influx of money from private equity firms and the role of AI in music creation and licensing.
The Complexity of Copyright Law in AI-Generated Music
The rise of AI in music creation brings forth complex issues in copyright law. The podcast episode explores how AI-generated music can potentially infringe on existing copyrights and the challenges of determining fair use. It raises questions about ownership and compensation when AI models produce music that sounds similar to existing songs. The importance of identifying the source of inspiration and accurately attributing credit in AI-generated music is discussed, including the need for a framework to determine the threshold for derivative works. The podcast also touches on ongoing conversations around AI training, micro-licensing, and the impact of technology on the music industry.
The Future of Music Licensing and Rights Management
As technology advances, the future of music licensing and rights management is undergoing significant changes. The podcast episode highlights the potential for AI to automate certain aspects of licensing and rights administration, making the process more efficient and streamlined. It discusses the concept of micro-licensing, where AI technology could facilitate high-volume, low-cost licensing for commercial use of music. However, challenges remain in determining appropriate compensation for creators and ensuring that AI-generated music respects existing copyrights. The episode emphasizes the ongoing need for industry collaboration, legal frameworks, and effective systems to navigate the evolving landscape of music licensing and rights management.
Navigating the Ever-Changing Music Industry Landscape
The music industry is in a state of constant change, driven by advancements in technology and evolving consumer behaviors. The podcast episode explores the opportunities and challenges faced by record labels and artists in this dynamic landscape. It delves into the importance of diversification across different platforms, such as Peloton and TikTok, as avenues for music discovery and monetization. The concept of localization in music, where local music has a global impact, is discussed, highlighting the growing opportunities for artists to reach diverse audiences. The episode also addresses the ongoing tensions between the music industry and digital streaming platforms regarding royalty rates, licensing, and content removal.
Balancing Innovation and Copyright Protection in AI-Driven Music
The rise of AI in music creation poses challenges in balancing innovation and copyright protection. The podcast episode examines the intersection of AI and copyright law, showcasing the necessity of cultivating regulations and agreements that ensure fair compensation for artists and protect intellectual property rights. It emphasizes the need for AI technologies to respect existing copyrights and provide proper attribution when generating music that resembles existing works. The episode acknowledges the complexity of determining fair use in AI-generated music and highlights ongoing efforts to address these issues, including the exploration of licensing frameworks, setting industry standards, and fostering collaboration between technology companies and rights holders.
Today I'm talking with Golnar Khosrowshahi, the founder and CEO of Reservoir Media, a newer record label that I think looks a lot like the future of the music industry. As Golnar explains, Reservoir thinks of individual songs as assets, and after acquiring them, the company sets about monetizing those assets in various ways. This is a copyright-based business in an age where copyright is under a lot of pressure — from TikTok, generative AI, and all of the now-familiar threats to the music business.
If you're a Decoder listener, you know that I love thinking about the music industry. Whatever technology does to music, it does to everything else five years later. So paying attention to music is the best way I know to get ahead of the curve. I also just love music. Golnar is herself a musician. She obviously cares about music a lot, and she's clearly given a lot of thought to what happens next. So this was a great conversation.