Study: Generative AI Could Cost Music Creators $10.5 Billion in Lost Revenue by 2028
A new CISAC study reveals that generative AI could significantly impact music industry revenues, potentially causing a $10.5 billion loss for music creators between 2024 and 2028. The research, conducted by Paris-based PMP Strategy, provides detailed insights into AI's economic implications for the music sector.
Robotic hands playing piano keys
Key Findings:
- AI-generated music market value could reach $16.82 billion by 2028, up from $1.05 billion in 2023
- AI tracks may represent 20% of streaming platform revenue by 2028
- Machine-made songs could comprise 60% of music libraries revenues
- Creator revenue could decline 30% from digital sources by 2028
- Annual creator losses could reach $4.20 billion by 2028
The study's methodology included:
- Qualitative and quantitative analysis
- Interviews with over 50 industry professionals
- Workshops with sector experts
Revenue Sources for AI Music in 2028 (Projected):
- Traditional streaming platforms (primary source)
- B2B AI music providers
- AI-dedicated streaming services
The findings emphasize the urgent need for legal frameworks and regulations governing AI in music. Current initiatives include:
- The U.S. NO FAKES Act and TRAIN Act
- Europe's AI Act implementation
- Ongoing legal actions in multiple jurisdictions
These projections align with previous industry analyses and highlight the critical importance of addressing AI's impact on music creation and compensation while the technology is still evolving.
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