Another day, another AI-music deal for Universal Music Group. This time it’s ElevenLabs signing on the dotted line – its first agreement with a major following Kobalt and Merlin.
UMG noted that this is both a licensing and a ‘product development’ deal. The latter includes jointly developing “AI audio products for artists and songwriters”, matching UMG’s existing partnership with Stability AI (if not yet its investment in that company as part of a funding round.)
However, UMG and ElevenLabs are also working together on “a new AI-powered music creation platform built on licensed music and artist participation” that will allow “remixes and mashups, new track interpretations, and personalised vocal experiences”.
UMG made it clear that this new platform “will be distinct and offered separately” from ElevenLabs other music products, including its ElevenMusic creation tool.
(That’s the one that committed to paying equal royalties to publishers and labels as part of its Kobalt/Merlin agreements. The recordings/publishing splits for the new platform announced with UMG have not been confirmed.)
The ElevenLabs deal confirms two of UMG’s early priorities when it comes to shaping the near-term direction of AI music: tools for musicians and remix/mash-up experiences.
The “remixes and mashups, new track interpretations, and personalised vocal experiences” play with ElevenLabs can be compared to UMG’s plans for fans to “reimagine your favourite song in a new genre, blend it with a different artistic style, or begin experimenting with covers” on Udio.
Meanwhile, it’s working with Spotify on a tool “allowing fans to create covers and remixes of their favourite songs from participating artists and songwriters”, and with Klay Vision on a platform that “reimagines listening with immersive, interactive tools”.
This reflects a challenge. The music industry wants AI-music platforms to be properly licensed, but what for? It knows very clearly what it doesn’t want to license: unfettered generation engines spitting out millions of slop-tracks onto streaming services.
Consumer AI-music platforms are seeking the sweet spot between a.) what’s technically possible; b.) what music fans actually want to do; c.) what rightsholders are willing to license; and d.) what artists and songwriters are willing to opt in to.
Right now, remix experiences tick the a.) and c.) boxes. It’s now up to UMG and its fellow rightsholders to tackle the challenge of d.) and persuade enough of their rosters to opt in to the deals they sign.
What about b.) though? Market research on potential fan demand is one thing, but it’s only when all these new AI-powered remix experiences actually launch (quite possibly around the same time, which promises to be quite the beauty contest) we’ll find out how many fans actually want them.
And – remember, this is all about creating a meaningful and additive revenue stream for rightsholders and musicians – we’ll also find out if that demand is matched by a willingness to pay for these experiences too.