Generative AI Could Cost Music Creators $10.5 Billion in Lost Revenue by 2028, Study Reveals
Generative AI could significantly impact the music industry's revenue landscape according to a new study by the International Confederation of Societies of Authors and Composers (CISAC) and PMP Strategy. Here are the key findings:
Robotic hands playing piano keys
Market Value Projections:
- AI music market value could reach $16.82 billion by 2028, up from $1.05 billion in 2023
- AI-generated tracks may represent 20% of streaming platform revenue by 2028
- AI music could comprise 60% of music libraries revenues
Impact on Creator Revenue:
- Projected $10.51 billion revenue loss for music creators between 2024-2028
- $4.20 billion potential loss in 2028 alone
- 24% of creators' revenues at risk by 2028
- 30% possible decline in creator revenue from digital sources
Revenue Distribution: Main sources of AI music revenue by 2028:
- Traditional streaming platforms
- B2B AI music providers
- Dedicated AI music streaming services
The study's methodology included:
- Qualitative and quantitative analysis
- Interviews with over 50 industry professionals
- Workshops with industry experts
Current Legal Response:
- Multiple legal actions ongoing in U.S. and Europe
- AI Act implementation in progress in Europe
- Pending U.S. legislation includes NO FAKES Act and TRAIN Act
- Slow progress on legislative solutions to date
The findings emphasize the urgent need for comprehensive legal frameworks to address AI's impact on music creation and compensation.
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