Explore the future of music tech in 2024 with discussions on industry mergers, the role of AI in music rights management, and the transformative potential of MIDI 2.0. The podcast also delves into the concerns and potential of AI-generated music, the impact of technology on collaborative music-making, and the quest for innovation in the music industry.
Consolidation within the music tech industry is expected to continue in 2024, driven by acquisitions and larger ecosystem plays.
AI technology in the music industry has the potential to improve transparency, revenue tracking, and create personalized experiences for fans.
Deep dives
Consolidation of Music Tech
In 2024, there is a trend of consolidation within the music tech industry as more companies are being acquired by larger organizations. This consolidation indicates the maturation of certain companies and their need for a strategic owner. Some acquisitions may be driven by companies facing turbulence and being acquired as a result. This consolidation is expected to continue in the first half of 2024, with more fire sales and larger ecosystem plays driving the trend.
Investment Market for Music Tech Companies
The interest rates and resulting slowdown in private equity and venture capital investments have influenced the high number of recent mergers and acquisitions in the music tech industry. However, there are positive signs of increased investment activity, especially in web three technologies, towards the end of 2023. As the public markets perform well, there is hope for a ramp-up in private markets and more investment opportunities in the latter half of 2024. This year is expected to bring exciting investment announcements and the emergence of new startups.
The Future of Music Streaming
Streaming is expected to shift from being the main revenue driver for artists and labels to becoming a loss leader in 2024. Artists with niche audiences or emerging talent may view streaming as a way to establish a presence but focus their business and creative activities elsewhere. Labels may also experiment more with alternative monetization methods as streaming platforms peak. Licensing conversations may progress more quickly as labels look for new opportunities and ways to extend their streaming models. The hope is that AI technology can facilitate greater transparency and auditing capabilities within the industry.
AI and Music Innovation
2024 will further establish AI as an opportunity rather than a threat in the music industry. Record labels and rights holders are realizing the potential AI holds in terms of repurposing existing catalog and engaging fans in new and interactive ways. AI technology can empower labels to create product extensions and personalized experiences for fans. Additionally, AI may also help improve transparency in revenue tracking and auditing practices. As AI continues to evolve, it opens up possibilities for unearthing new business insights and creating previously unimaginable artistic experiences.
Unlock the secrets behind the rapidly evolving music tech industry as Tristra and Dmitri take you on a journey through the latest innovations and investment trends. We're dissecting the major shake-ups caused by recent buyouts and what they mean for the future of music technology. Against the backdrop of shifting investment landscapes, we find a glimmer of hope in the resilient end-of-year investment surges, especially in the exciting realm of Web 3. Venture with us as we explore what the latter half of 2024 might hold for music tech pioneers riding the wave of innovation.
Next, we discuss the role of AI in music that goes beyond beats and melodies. We're peeling back the layers of how artificial intelligence is setting the stage for a revolution in rights management and financial transparency for artists and industry moguls alike. Hear our take on the crucial need for the music community to embrace AI's power in deconstructing data complexities, and how this technological marvel is paving the way for new revenue optimization and precise royalty distribution.
Finally, we look towards the horizon of music innovation. Imagine instruments with new capabilities birthed from hardware advancements and AI, enabling a symphony of possibilities for musical expression. We're discussing the transformative potential of MIDI 2.0, the enchantment of integrating music with immersive media, and the futuristic concept of ambient computing turning spaces into interactive musical canvases. Explore what lies ahead in the intersection of music and technology, and how these advances promise to amplify the experiences of music creators and fans alike in this week’s episode.
The Music Tectonics podcast goes beneath the surface of the music industry to explore how technology is changing the way business gets done. Visit musictectonics.com to find shownotes and a transcript for this episode, and find us on LinkedIn, Twitter, and Instagram. Let us know what you think!
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode