Study: Generative AI Could Cost Music Creators $10.5 Billion in Lost Revenue by 2028
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.
Robotic hands playing piano keys
Key findings from the study:
Market Value Growth:
- 2023: $1.05 billion
- 2028 (projected): $16.82 billion
Revenue Impact:
- AI-generated tracks could represent 20% of streaming platform revenue by 2028
- Machine-made songs may comprise 60% of music libraries revenue
- Potential $10.51 billion loss for human creators between 2024-2028
- $4.20 billion projected loss in 2028 alone
Digital Revenue Impact:
- 30% potential decline in creator revenue from digital sources by 2028
- 24% of total creator revenues at risk when compared to a non-AI scenario
The study's methodology included:
- Qualitative and quantitative analysis
- Interviews with over 50 industry professionals
- Workshops with industry experts
Current Legal Response:
- Ongoing courtroom proceedings in the U.S. and Europe
- Implementation of the AI Act in Europe
- Pending legislation including the NO FAKES Act and TRAIN Act
- Slow progress in legislative developments
The findings emphasize the urgent need for comprehensive legal frameworks to address AI's impact on music creation and distribution, protecting creators' rights while managing technological advancement.
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