Denis Ladegaillerie on AI, streaming royalty models, Believe's game plan... and more
Sep 6, 2023
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Denis Ladegaillerie, founder and CEO of Believe, discusses streaming fraud, the Asian music market, Believe's plans to challenge major music companies, and the use of AI in the music industry. The chapter descriptions include the benefits of AI, monetizing superfans, the growing importance of Asia, controversy and support in Russia and Ukraine, and the rise of local artists.
AI and generative AI empower artists and benefit the music industry globally by enhancing creativity and aiding music discovery through recommendation algorithms.
Streaming services can cater to superfans by offering unique experiences and special rewards, creating a more personalized and valuable fan experience.
Deep dives
The Positive Implications of AI in the Music Industry
AI and generative AI create opportunities for creativity and discovery in the music industry. Generative AI empowers artists to enhance the creation of music, while AI aids in music discovery through recommendation algorithms. The music industry should embrace AI as a positive development that empowers artists and benefits the industry globally. Concerns about copyright protection can be addressed through collaboration and cooperation between music distributors, technology companies, and the music industry.
Expanding Fan Experiences for Superfans
Streaming services have the potential to offer superfans a more immersive experience and generate additional financial benefits. Superfans value unique experiences and engagement with artists, such as meet and greets, early access to albums, and exclusive events. By providing dedicated subscriptions and special rewards, streaming services can cater to superfans and create a more personalized and valuable fan experience.
The Growing Influence of Asian Music Markets
Asia is becoming a significant player in the global music industry. With markets like Japan, China, and India, Asia has some of the largest music markets in the world. These markets are experiencing accelerated growth due to lower levels of paid subscriptions and increasing monetization. Additionally, local artists dominate these markets, contributing to the rise of regional superstars. In the next decade, regional music scenes in Asia, Latin America, and Europe will see substantial growth, transforming the global music landscape.
Believe's Positioning for Growth and Market Expansion
Believe is well-positioned for growth and global market expansion. With a presence in emerging markets and plans to explore new services, Believe aims to drive faster than market growth. The company recognizes the potential of independent artists, evidenced by recent success stories like Oliver Anthony's chart-topping achievement. Believe's focus in the United States includes providing support for independent artists to grow their careers with alternative platforms and services. The company is open to acquisition opportunities and aims to create new opportunities for artists outside traditional major label structures.
Welcome to the latest Music Business Worldwide podcast supported by Voly Music.
On this 'cast, MBW founder Tim Ingham is joined by Denis Ladegaillerie, founder and CEO of Believe.
Paris-headquartered Believe is now well established as one of the largest recorded music companies in the world, both via its Believe-branded artist and label services operation, as well as its subsidiary, TuneCore, which announced the close of last year that it had paid out over USD$3 billion to independent artists to date.
Believe currently is valued at around USD $1 billion on the Paris Euronext stock exchange, having turned over around USD $450 million in revenue in the first half of 2023.
(Believe reports its revenues in Euros.)
On this podcast, MBW's Ingham asks Ladegaillerie all about a number of key topics including:
- How the music industry should deal with streaming fraud; - Why Asia is set to commercially explode in music in the years ahead; - What Believe’s strategy is to challenge the ‘major’ music companies; and - Yep... Artificial Intelligence. (AI is a particularly timely subject at Believe and TuneCore, which recently partnered with Grimes to distribute music created by other artists using an AI replication of her voice.)
One other important point: Believe is no longer just a recorded music company.
Since March it has also run its own global music publishing operation, housed under TuneCore, following Believe's acquisition of the $51 million-valued Sentric Music.
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