Study: AI Music Could Cost Creators $10.5 Billion in Lost Revenue by 2028
Generative AI's potential impact on the music industry could result in significant revenue losses for creators, according to a new study by CISAC and PMP Strategy. Here's what the research reveals:
Robotic hands playing piano keys
Key Findings:
- The market value of AI-generated music 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
- Machine-made songs could comprise 60% of music libraries revenues
- Human creators face potential revenue losses of:
- 24% overall creator revenue reduction by 2028
- 30% decline in digital revenue sources
- $10.51 billion total loss between 2024-2028
- $4.20 billion loss in 2028 alone
The study's methodology included:
- Qualitative and quantitative analysis
- Interviews with over 50 industry professionals
- Workshops with music industry experts
Revenue sources for AI-generated music in 2028 are expected to come primarily from:
- Traditional streaming platforms
- B2B AI music providers
- Dedicated AI music streaming services
These findings highlight the urgent need for legal frameworks and regulations around AI in music creation. Current initiatives include:
- The AI Act in Europe
- NO FAKES Act in the US
- TRAIN Act legislation
- Ongoing legal actions in both US and European courts
The study focuses on economic impact rather than job losses, aiming to inform discussions about future remuneration mechanisms for music creators.